Farm size and resource use efficiency of selected farms in Kwara State of Nigeria

Abstract

This paper examines resource use efficiency on small and large farms in Kwara State of Nigeria.  Primary data were collected from 120 farmers who were selected using multistage random sampling method.  The data were analyzed using descriptive and regression techniques.  Results of the analysis revealed that farm size and fertilizer play major role in explaining variations in farm output.  The marginal value product (MVP) of land, labour, purchased inputs, durable capital and fertilizer were positive and higher on large farms than on small farms.  The MVP of labour and purchased inputs was negative on small farms.  Durable capital was efficiently used on small farms but the use of the other resources was not efficient.  The use of labour, durable capital, fertilizer and purchased inputs were not efficient on large farms.  Increasing rate of returns was observed on both the small and large farms.  Increasing the level of farm size and fertilizer use and decreasing the level of labour and purchased input would increase output on both small and large farms.  Policy efforts should concentrate on making fertilizer available and affordable to farmers and expanding farmer’s resource base to increase farm size and productivity.