RESOURCE USE EFFICIENCY OF ONION FARMERS IN THE UPPER EAST REGION OF GHANA

Abstract

The productivity and benefits of agricultural production depends on the efficient use of agricultural inputs. This research work therefore examined the efficiency with which farmers use their productive resources in producing onion in the Upper East Region of Ghana. The study used a sample of 272 onion farmers selected from three (3) onion-producing districts in the Upper East Region. Primary data were collected through face-to-face interviews using semi-structured questionnaires to solicit information from onion farmers. Using the Maximum Likelihood Estimation of the stochastic frontier function, it was found that farm size, seed, labour, fertilizer and mechanisation had positive influences on technical and allocative efficiencies of onion producers at varying significant levels. Age, access to credit and water pump were found to influence technical efficiency positively but farm size was positively related to technical inefficiency at 5%. Water pump usage, access to extension services and farm size were positively related to allocative efficiency at 1% with age having a negative influence on allocative efficiency at 5%. The study found mean score of 0.904, 0.896 and 0.810 for technical, allocative and economic efficiencies, respectively. The resource use efficiency ratios show that onion farmers were underutilising land, seed and fertilizer but are over-utilising water pumps. There is the need to extend subsidy to all agrochemicals and agricultural machines. The study recommend that government should priorities the funding of extension delivery system, pursuing policies to increase irrigation schemes in the region and make efforts in providing affordable credit facilities to farmers in order to sustain or improve the efficiencies of onion farmers.