A cost efficiency analysis of boro rice production in Dinajpur district of Bangladesh

The size of the farm is an important factor that reflects the efficient utilization of resources in farming. Therefore, this paper aims to investigate how the farm size affects the cost efficiency of rice production during the Boro season in Bangladesh. In particular, the analysis aims to estimate t...

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Main Authors: Md Shajedur Rahaman, Sadika Haque, Md Abdur Rouf Sarkar, Mohammad Chhiddikur Rahman, Md Salim Reza, Mohammad Ariful Islam, Md Abu Bakr Siddique
Format: Article
Language:English
Published: Farm to Fork Foundation 2021-03-01
Series:Fundamental and Applied Agriculture
Subjects:
Online Access:http://www.ejmanager.com/fulltextpdf.php?mno=137178
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author Md Shajedur Rahaman
Sadika Haque
Md Abdur Rouf Sarkar
Mohammad Chhiddikur Rahman
Md Salim Reza
Mohammad Ariful Islam
Md Abu Bakr Siddique
author_facet Md Shajedur Rahaman
Sadika Haque
Md Abdur Rouf Sarkar
Mohammad Chhiddikur Rahman
Md Salim Reza
Mohammad Ariful Islam
Md Abu Bakr Siddique
author_sort Md Shajedur Rahaman
collection DOAJ
description The size of the farm is an important factor that reflects the efficient utilization of resources in farming. Therefore, this paper aims to investigate how the farm size affects the cost efficiency of rice production during the Boro season in Bangladesh. In particular, the analysis aims to estimate the concentration of cost efficiency among the 240 small, medium, and large Boro rice growers sampled in the Dinajpur district. Descriptive statistics were used to evaluate the socioeconomic characteristics of rice farmers. A Cobb-Douglas type stochastic cost frontier model was employed to figure out how the rice farmers are cost-efficient. The sociodemographic factors that affect efficient investment in rice production also have been identified. Results of the study show a broad range of cost efficiency scores between 56.65 to 96.40% for the worse to the best rice-growing farmer, respectively with an average efficiency of 84.01%. The findings also show that the mean cost efficiency level of small, medium, and large farmers was 83.30, 85.58, and 94.43%, respectively. The land rental fees, human labor wages, irrigation prices, and pesticide prices are the key factors that contribute to the productivity of rice cultivation. The relatively higher level of cost efficiency among large farmers obviously demonstrates the notion that only large farmers in the study region are investing efficiently in rice growing. Irrespective of the farm size, the cost efficiency drivers found out that more efficient were the farmers who had more experience in farming, obtained training on rice production techniques, and better access to institutional credit. It is therefore recommended that rice farmers should be well trained, provided credit access along with developing rural set-up, and also provide extension services in order to increase the cost efficiency levels in Boro season. [Fundam Appl Agric 2021; 6(1.000): 67-77]
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spelling doaj.art-df9811a74a9d4ed8b5a3a53ba86453772022-12-21T21:27:48ZengFarm to Fork FoundationFundamental and Applied Agriculture2518-20212021-03-0161677710.5455/faa.137178137178A cost efficiency analysis of boro rice production in Dinajpur district of BangladeshMd Shajedur Rahaman0Sadika Haque1Md Abdur Rouf Sarkar2Mohammad Chhiddikur Rahman3Md Salim Reza4Mohammad Ariful Islam5Md Abu Bakr Siddique6Scientific Officer, Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur-1701, Bangladesh Professor, Department of Agricultural Economics, Agricultural Economics Rural Sociology, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh Senior Scientific Officer, Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur-1701, Bangladesh Senior Scientific Officer, Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur-1701, Bangladesh MS student, Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh Senior Scientific Officer, Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur-1701, Bangladesh Chief Scientific Officer, Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur-1701, BangladeshThe size of the farm is an important factor that reflects the efficient utilization of resources in farming. Therefore, this paper aims to investigate how the farm size affects the cost efficiency of rice production during the Boro season in Bangladesh. In particular, the analysis aims to estimate the concentration of cost efficiency among the 240 small, medium, and large Boro rice growers sampled in the Dinajpur district. Descriptive statistics were used to evaluate the socioeconomic characteristics of rice farmers. A Cobb-Douglas type stochastic cost frontier model was employed to figure out how the rice farmers are cost-efficient. The sociodemographic factors that affect efficient investment in rice production also have been identified. Results of the study show a broad range of cost efficiency scores between 56.65 to 96.40% for the worse to the best rice-growing farmer, respectively with an average efficiency of 84.01%. The findings also show that the mean cost efficiency level of small, medium, and large farmers was 83.30, 85.58, and 94.43%, respectively. The land rental fees, human labor wages, irrigation prices, and pesticide prices are the key factors that contribute to the productivity of rice cultivation. The relatively higher level of cost efficiency among large farmers obviously demonstrates the notion that only large farmers in the study region are investing efficiently in rice growing. Irrespective of the farm size, the cost efficiency drivers found out that more efficient were the farmers who had more experience in farming, obtained training on rice production techniques, and better access to institutional credit. It is therefore recommended that rice farmers should be well trained, provided credit access along with developing rural set-up, and also provide extension services in order to increase the cost efficiency levels in Boro season. [Fundam Appl Agric 2021; 6(1.000): 67-77]http://www.ejmanager.com/fulltextpdf.php?mno=137178cost effectivericefarm sizestochastic frontier analysisbangladesh
spellingShingle Md Shajedur Rahaman
Sadika Haque
Md Abdur Rouf Sarkar
Mohammad Chhiddikur Rahman
Md Salim Reza
Mohammad Ariful Islam
Md Abu Bakr Siddique
A cost efficiency analysis of boro rice production in Dinajpur district of Bangladesh
Fundamental and Applied Agriculture
cost effective
rice
farm size
stochastic frontier analysis
bangladesh
title A cost efficiency analysis of boro rice production in Dinajpur district of Bangladesh
title_full A cost efficiency analysis of boro rice production in Dinajpur district of Bangladesh
title_fullStr A cost efficiency analysis of boro rice production in Dinajpur district of Bangladesh
title_full_unstemmed A cost efficiency analysis of boro rice production in Dinajpur district of Bangladesh
title_short A cost efficiency analysis of boro rice production in Dinajpur district of Bangladesh
title_sort cost efficiency analysis of boro rice production in dinajpur district of bangladesh
topic cost effective
rice
farm size
stochastic frontier analysis
bangladesh
url http://www.ejmanager.com/fulltextpdf.php?mno=137178
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