IMPACT OF LAND CONSOLIDATION ON WHEAT PRODUCERS’ PRODUCTIVITY AND TECHNICAL EFFICIENCY IN KOGOTA AND CHENCHA ZURIA WOREDA OF GAMO ZONE, ETHIOPIA

Abstract

The backbone of the Ethiopian economy is agriculture. Smallholder farmer’s agricultural productivity growth is one of the priorities issue for Ethiopia. The objective of this study is to analysis impact of land consolidation on wheat producers’ productivity and technical efficiency in Kogota And Chencha Zuria Woredas Of Gamo Zone. Cross-sectional data from 390 smallholder farmers were collected. The respondents were chosen using a mix of probability and non-probability sampling technique. To analyze the data, Stochastic Production Frontier and binary endogenous switching regression model were employed. The empirical result revealed that the technical efficiency score of the wheat producers ranges from 45 to 98 percent with mean technical efficiency score of 86 percent. This implies that an average farmer can improve production level by 16% through improving technical efficiency alone. The mean technical efficiency stands at 90% and 83% for participant in land consolidation and non-participant households, respectively. The stochastic frontier model results revealed that frequency of extension contact, household size, farm size, cooperative membership and the use of improved seed were significantly and positively affected technical efficiency of smallholder wheat producers in the study area. The binary endogenous switching regression model result revealed that farm households who participated in land consolidation were more technically efficient in wheat production compared with their non participant counterparts. On the other hand, the model revealed that farmers who participated in land consolidation could have gained lower yield than if they had not participated; and those who did not participated could have gained higher yield than if they had. Based on these findings, it is recommended that improve the efficiency level of smallholder wheat producers a timely supply of inputs such as improved seed and fertilizer, efficient extension services, cooperative membership, and policy for the implementation of land consolidation will be promoted to improve productivity and technical efficiency