Evaluation of Economics Efficiency of Yam Production in Wukari Local Government Area of Taraba State
Abstract
Improving resource-use efficiency is essential for enhancing the profitability and sustainability of yam production. This study assessed the costs and returns and evaluated the technical and economic efficiency of yam production in Wukari Local Government Area, Taraba State, Nigeria. Primary data were collected from 120 yam farmers selected through a multistage sampling procedure and analyzed using net farm income analysis and stochastic frontier models. The results indicate that yam production was profitable, generating an average gross margin of ₦217,441.67, with a total variable cost of ₦628,830.25 and a return of ₦0.30 per naira invested. Seed represented the largest variable-cost component (49%), followed by labour (38%). The stochastic production frontier yielded a gamma estimate of 0.87, indicating that 87% of the composite-error variance was attributable to technical inefficiency. The economic efficiency analysis similarly attributed 92% of the observed variation to differences in farmers’ economic efficiency. Farm size, seed quantity, fertilizer application, and labour positively influenced yam output, whereas agrochemical use had a negative association, suggesting possible overapplication or inappropriate use. Educational attainment, household size, farming experience, and age significantly reduced economic inefficiency, demonstrating the importance of farmers’ socioeconomic characteristics and human capital. The study concludes that although yam production in the study area is profitable, considerable scope remains for improving technical and economic efficiency through more effective resource allocation, greater access to credit, and the adoption of improved farming practices. These findings provide empirical guidance for policies that prioritize subsidized production inputs, strengthened agricultural extension services, farmer education, and expanded credit access to improve the productivity and sustainability of yam production.