Technical and Allocative Efficiency Analysis of Nigerian Rural Farmers: Implication for Poverty Reduction

The stochastic frontier models were used to analyse technical and allocative efficiency of Nigerian rural farmers. Farm level data from Benue state of Nigeria was used for the study. The study showed that technical and allocative efficiency in farm production among the farmers could be increased by 68 and 65%, respectively through better use of available resources. This could be achieved through improved farmer-specific factors which include improved farmer education, improved farmer experience, attraction of young and male farmers into farm productions. In addition, there should be policies that encourage the supply of sufficient and affordable labour for farm production.