COMPARATIVE ANALYSIS OF PRODUCTION AND COST EFFICIENCY AMONG RICE FARMERS UNDER THE FADAMA III PROGRAMME IN KEBBI STATE, NIGERIA

This study compares the production and cost efficiency of rice farmers participating in the
Fadama III Programme (beneficiaries) versus non-beneficiaries in Kebbi State, Nigeria. Using
a multistage random sampling technique, 500 farmers (250 beneficiaries and 250 non￾beneficiaries) were selected across 11 Local Government Areas. Primary data were collected
via structured questionnaires and analyzed through descriptive statistics and stochastic frontier
production and cost function models. Results show that beneficiaries generally achieved higher
technical, allocative, and economic efficiency. Specifically, 54.8% of beneficiaries had technical
efficiency (TE) in the 0.81–0.90 range, and 38.8% exceeded 0.90; among non-beneficiaries,
64.8% were in the 0.81–0.90 band while 18.8% scored below 0.50. In the production model,
farm size (β = 0.1272; p < .01) and labour (β = 0.0449; p < .05) significantly increased output
among beneficiaries; agrochemical use (β = 0.0315; p < .05) also boosted productivity.
Inefficiency declined with household size (β = –0.1506; p < .01) and extension contact (β = –
0.0614; p < .01). In the cost model, farm size reduced unit costs for beneficiaries (β = –0.0724;
p < .01), while non-beneficiaries faced higher fertilizer (β = 0.1748; p < .01) and labour (β =
0.7796; p < .01) costs. Access to credit reduced inefficiency (β = –0.7751; p < .01). Sigma￾square and gamma diagnostics confirmed greater inefficiency among non-beneficiaries. The
study concludes that Fadama III participation enhances resource use and cost efficiency. It
recommends scaling up farmer training, improving credit access, and expanding input support
to reduce efficiency gaps.