Economic Effi ciency of Yam Production in Oyo State of Nigeria

Th is study estimates economic effi ciency of yam growing farmers in Oyo State of Nigeria using stochastic frontier production function. Th e empirical application used farm level data collected from 120 farms following 2007/2008 growing season. Th e results indicate that farm size, hired labour, yam set and equipment are the major factors that infl uence changes in yam output. Farm specifi c variables, such as farming experience, diversifi cation and extension, were the signifi cant factors infl uencing ineffi ciency among yam producers. Predicted economic effi ciencies range between 0.0094 and 0.876 with a mean economic effi ciency of 0.594. Based on these results, sample yam producers could increase their output by 40.6% through better use of available resources.