Abstract:
Ethiopian agriculture is characterized by low production. Either the use of
contemporary technology or increasing farmers' productivity is crucial for solving this
issue. The most focus has been placed on increasing farmer efficiency because it is
more economical than adopting new technologies. Analyses of smallholder farmers’
levels of technical, allocative, and economic efficiency as well as factors influencing
those levels in the research area’s maize production were the main objectives of this
study. In order to achieve the given goals, primary data were gathered from 144
randomly chosen sample households throughout the production year 2021/22 using
structured questionnaires. Tobit model was utilized to determine factors affecting
efficiency level, while stochastic production frontier model was used to estimate
technical, allocative, and economic efficiency level. Technical, allocative, and
economic efficiency were, respectively, 73.99%, 71.16%, and 50.13 percent on
average. Thus, the findings show that the production of maize in the study area suffers
from significant levels of inefficiency. The Tobit model results showed that technical
efficiency was significantly positively influenced by education levels, family size, and
farm size, frequency of extension contact, credit usage, and off-farm activities. It was
discovered that having livestock, engaging in off-farm activities, and the distance
between the maize field and the dwelling had good effects
