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ISSN 2224-3186 (Paper) ISSN 2225-0921 (Online)
Vol.6, No.16, 2016
Abstract
This study fits a stochastic Cobb-Douglas production frontier of the pearl millet smallholder farmers and
examined their technical efficiency comparing Conservation and Traditional Agriculture practices. The data was
collected using a structured questionnaire administrated to 100 randomly selected smallholder farmers in
Omusati, Ohangwena, Oshikoto, Oshana and Kavango regions during the 2014-2015 planting season. The
estimated parameter of the model shows that land availability, the level of fertilizer use and tractor power
explains variations in the production of pearl millet. The efficiency analysis result shows there is no statistically
significant difference in the technical efficiency of farmers who were exposed to conservation agriculture
compared to their traditional method of agriculture. The inefficiency model indicates that farm experience, farm
size, and farm training have significant positive effect on efficiency. In addition, the study examined farmers
willingness to pay for extension services, the predicted probability of getting farmers who are willing to pay is
60%. Some socio-economic factors such as farm size, herd size, and membership of a cooperative were found to
influence farmers’ willingness to pay for extension service. The study recommends that Conservation
Agriculture should be continued over a long period of time so that the impact can be felt. Capacity building,
training, extension services, information on agronomic practices and farmer’s education are factors that policy
should address.
Keywords: technical efficiency, Conservation Agriculture, pearl millet, stochastic production frontier.
The Namibian population at large has a large number of people that are rural dwellers. About 70 percent of these
rural dwellers depend on agriculture for sustenance (UNEP, 2012). The agriculture sector is a major contributor
to employment. It employs about twenty-seven percent of the country’s workforce and fifty-eight per cent of the
workforce live in the rural areas (UNEP, 2012). Nevertheless, there has been a declining trend in agricultural
productivity and often the practice is seldom sustainable. In 2013, a report by the World Food Programme on
food security indicated that crop production in Namibia was threatened by continued drought. Consequently, a
significant drop in cereal output was recorded in 2015. Maize production declined by 73% from the above-
average yield in 2014. Production of sorghum and millet also decreased by 60 and 65 percent respectively (Food
and Agriculture Organisation (FAO), 2015). This resulted in food shortages, leading to about 30% of households
adopting survival strategy of reducing the number of their food ration to one meal per day (FAO, 2015). This led
to reduced availability and reduction in dietary diversity to about 46% among the households (Emergency Food
Assessment in Communal and Resettlement Areas of Namibia (EFA), 2013). As a result, an estimated number of
330 925 people were found to be food insecure (EFA, 2013).
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Journal of Natural Sciences Research www.iiste.org
ISSN 2224-3186 (Paper) ISSN 2225-0921 (Online)
Vol.6, No.16, 2016
Due to the declining trend in food production, attention is now focussed on methods of improving agricultural
productivity. This is because the improvement of agricultural productivity is an important tool towards
increasing household food security and alleviating rural poverty (Owour, 2000). Despite the various past efforts,
food security continues to be a challenge in Namibia as is the situation in a number of Sub-Saharan African
countries. This is so because of low and stagnant agricultural productivity growth associated with major crops
like pearl millet which are predominantly produced by smallholder farmers under rain-fed conditions (United
Nation Partner Framework (UNPAF), 2014). More effort is required for total eradication of poverty and food
insecurity. In this regard, the key area of interventions is to enhance efficiency and productivity growth, make
land available to the poor through land reform and maximize the potential of available land through the use of
improved soil fertility, and the adoption of technical innovations that enhance technical change (UNPAF, 2014).
These landmarks are currently not achieved under the Traditional Agricultural (TA) system where few available
lands are marginally utilized, resulting in soil degradation and a decline in productivity. In the wake of this
situation, there is a need for a re-thinking about the best way of utilizing land potentially. As a result, an
agricultural practice (conservation agriculture) that inculcates the principle of conservation has recently been
introduced to the farmers in some parts of the Northern Namibia. This type of agricultural practice aims at
improving efficiency and productivity by preventing loss or damage to the soil and soil components, thereby
enhancing the preservation and careful management of the environment and of natural resources, such as land.
As a pilot project, the conservation agricultural practice was introduced to the farmers (by a non-governmental
organization NGO) who applied it alongside their Traditional Agricultural (TA) practice, that is, farmers were
selected to utilize the two methods simultaneously.
Therefore, the aim of this study is to compare the production frontier of the two practices to determine the
response of agricultural output to the inputs under both practices and in addition, measure the farmers’ efficiency
of production. The measurement of farm efficiency is an important factor for productivity growth and it will be a
viable option in the developing countries such as Namibia where resources are scarce (Kibaara, 2005). As
mentioned previously, the administration of this pilot project is facilitated by an NGO whose services are
currently offered without cost to the farmers. However, it is envisaged that in the future, the farmers might be
required to pay for the services. Therefore, the study also assesses the farmers’ willingness to Pay (WTP) for
such services in the future. In agriculture, WTP studies have been used to evaluate demand and cost curves for
extension services delivery through commercial agents (Oladele, 2008). A similar approach will be adopted in
this study because the extent to which the farmers are willing to pay for extension services has not been
conducted in this field of study in Namibia. The study is important because the outcome will aid policy makers
and stakeholders towards the generation of a pool of knowledge about farm practice that is optimal and can
maximize land use. This will form important anecdote to the mandate of the national development plans
(Mushunje, 2005).
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Journal of Natural Sciences Research www.iiste.org
ISSN 2224-3186 (Paper) ISSN 2225-0921 (Online)
Vol.6, No.16, 2016
Where:
Output (Y) is yield of pearl millet in kg;
X1 is planted land size (ha)
X2 is the fertilizer application (kg)
X3 is the seed quantity (kg)
X4 is the total labour (man days)
X5 is tractor power
The technical inefficiency model was used to identify factors that influence the efficiency among pearl millet
farmers in the study area, and the model was estimated as follows;
= + + + + + + + ……………………… (2)
Where:
Z1= farm experience; Z2 = education level; Z3= extension services; Z4 = off farm income; Z5 = farm size; Z6 =
Cooperative membership, Z7= household income less than 2000, Z8= household size, Z9 = household status, Z10
= farm training, Z11= farm credit (loan).
Pr =1 = + ………………………………………………………………… (3)
Where, Y is a dichotomous dependent variable which can assume the value of 0 or 1. It measured the farmer’s
willingness to pay for extension services. Xi = n x k matrix of explanatory variables (farm experience, age,
education level, extension services, off farm income, farm size, cooperative membership, household income,
household status). =k x 1 vector of parameters to be estimated and is the error term.
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Journal of Natural Sciences Research www.iiste.org
ISSN 2224-3186 (Paper) ISSN 2225-0921 (Online)
Vol.6, No.16, 2016
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Journal of Natural Sciences Research www.iiste.org
ISSN 2224-3186 (Paper) ISSN 2225-0921 (Online)
Vol.6, No.16, 2016
Table 2: Maximum Likelihood Estimation of the Cobb-Douglas stochastic production frontier for the
comparison of Conservation Agriculture vs Traditional Agriculture
Conservation Agriculture Traditional Agriculture
(CA) (TA)
Variable Coefficients Coefficients
-0.0458 -0.1279
Total labour
(0.5180) (0.5290)
0.1846** 0.1171
Land
(0.0570) (0.2620)
0.0592*** -0.0551**
Fertilizer
(0.0080) (0.0120)
0.0410 0.0253
Seed
(0.4020) (0.6250)
-0.2229** -0.2309**
Tractor power
(0.0140) (-0.0260)
6.5761*** 0.1228
Constant
(0.000) (0.6660)
-3.8945 -3.6696
Lnσ v2 (0.0000) (0.0000)
2 -0.7741 -0.7922
Lnσ u (0.0000) (-0.00060)
0.1427 0.1596
σv (-0.0370) (-0.0662)
0.6791 0.6729
σu (-0.0810) (-0.0973)
Wald Test: Joint Significance:
Wald Chi-square(11) 20.030 15.650
Prob > Chi-square 0.001 0.008
LR Test: Sigma_u = 0 29.46 7.02
(0.0000) (0.004)
Note: Figures in parenthesis are the p-values. The notation ***, **, and * denote statistical significance at the
1%, 5% and 10% level of significance.
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Journal of Natural Sciences Research www.iiste.org
ISSN 2224-3186 (Paper) ISSN 2225-0921 (Online)
Vol.6, No.16, 2016
The mean technical efficiency of 32% under conservation agriculture indicates that on average the respondents
are able to obtain over 30% of potential output from a given mix of production inputs. The result is consistent
with Diiro (2013) and Kibaara (2005). This implies that, in the longer term, there is a potential for pearl millet
producers to increase their efficiency by about 68% by utilising existing farm resources better and following the
appropriate principles of conservation agriculture so as to be on the optimal production frontier. While under
TA, the mean technical efficiency of 33% indicate that on average there is a potential for pearl millet producers
to increase their efficiency by about 67% utilising existing farm resources better and adopting improved
technology and techniques. The regional analysis (Table 4) shows that Kavango region was the most efficient
region in both technologies as evidenced by the farmers’ inefficiency scores. The most inefficient were Oshikoto
and Ohangwena regions for both methods of farming. The differences in efficiency levels between regions could
be attributed to factors such as climate, soil fertility, availability of planting materials such as seeds, poverty
prevalence, management and socio-economic factors. The intra-region differences between CA and TA are also
very small an indication that the effects of the CA cannot be realized in the short-run. Generally, the result
indicates that there is a need to practice CA over a longer period of time in order to observe the desired impact.
In the case of conservation agriculture, household size, cooperative membership, income>2000, farming
experience are significant at 5% and 10%. Although these variables are significant, they have positive signs
except farming experience which implies that they have a negative effect on efficiency. This finding is consistent
with studies carried out by Kibaara (2005), Mango, Makate, Lundy (2015) and Diiro (2013). The coefficient sign
for farming experience is negative and significant; suggesting that this variable reduces technical inefficiency.
This further entail that experienced farmers tend to be more efficient because of good managerial skills which
they have learnt over time, and more efficient than younger ones. This result is supported by Khairo and Battese
(2005) who found that the farming experience coefficient was negative and significant which means that farmers
tend to decrease their technical inefficiencies as they become more experienced. The estimated positive
coefficient of the household size which is significance at 5% implies that smaller families are efficient compared
to larger ones because large family size exerts pressure on the limited resources a farmer has (Mango et al,
2015).
The insignificant level for extension service and training is not as expected, however; this could be attributed to
slow rate of adoption and understanding of the intervention by first time participants’ farmers (Mkhabela, 2005).
The positive coefficient sign for Income<2000 indicate that farmers who have a household income less than
2000 are inefficient compared to the ones earning more than this amount. This is because farmers with
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Journal of Natural Sciences Research www.iiste.org
ISSN 2224-3186 (Paper) ISSN 2225-0921 (Online)
Vol.6, No.16, 2016
income<2000 will not have the financial resources to purchase necessary inputs for farming that may increase
their technical efficiency; this result is consistent with Oladimeji and Abdulsalam (2013).
The result for the cooperative membership shows that farmers who are non-cooperative members were more
efficient than the ones who are members. This result is not expected because; being a member of the cooperative
gives the farmers opportunities for training, information, collective bargaining power and credit sales. This could
be due to the fact that most of the farm cooperative does not offer these services hence; members do not have
much leverage over non-members.
In traditional agriculture, the estimated coefficient sign of the variables from the inefficiency model shows that
only farmers’ training, farm experience, and farm size are statistically significant with the correct signs. This
indicates that these variables have a positive influence on technical efficiency. With regards to training, the
finding implies that farmers who have access to training classes are more efficient than the ones who do not. The
training sessions farmers have received over time by the Ministry officials on production related information
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Journal of Natural Sciences Research www.iiste.org
ISSN 2224-3186 (Paper) ISSN 2225-0921 (Online)
Vol.6, No.16, 2016
tend to increase their efficiency levels. This result is consistent with Mango et al (2015). Moreover, a negative
sign for farm size implies that farmers with large arable land tend to be more efficient than smallholder farms as
they are able to diversify their activities i.e. practice crop rotation and other integrated farming systems that
eventually increase their income and improve their efficiency. This same result was found by Mango et al
(2015). Although the household size and financial credit are significant, their coefficients are positive which
implies they have a negative influence on technical efficiency. Larger and poor households are more likely to
default in honouring their financial obligation, more credit, in this case, mean more liability; therefore, credit-
strapped farmers are more likely to be inefficient because increase credit gets them more entangled in debts.
Debt financing strips them of the available cash flow.
3.7 Factors influencing farmer’s willingness to pay (WTP) for extension services
To identify determinants of willingness to pay for agricultural extension services, probit model was estimated.
The result shows that farm size, household income (Income < 2000), cooperative membership and household
size have a significant relationship with farmer’s willingness to pay. The predicted probability of getting farmers
who are willing to pay for extension services is 60 %, (Table 6). The probability is high, an indication of the
likelihood that future CA practices will be adopted by the majority of the farmers.
Farm size was found to be statistically significant at 5% level with the willingness to pay for an extension.
Negative sign implies that farmers with small farm size are more likely to pay than those with larger farms. This
could be attributed to the fact that the farmers are in a communal leasehold farming system with small land
capacity. If farm size increases they will pay more premium as the payment for extension is made per hectare.
Household size was significant at 1% level and has negative signs. The result is in agreement with the a priori
expected sign because if household size increases, the cost of living increases and the purchasing power of the
farmer decline. This finding is supported by Tolera et al (2014) who revealed that negative sign implies that
small size households were likely to pay more than larger households.
Cooperative membership was significant at 1% level. A negative sign implies that farmers who are non-
cooperative members are more likely to pay than unionized farmers. The finding is consistent with results by
Oladele (2008). Cooperative member who gets services and other benefits from cooperatives are less likely to
pay because they would rely on the cooperative assistance than pay additional money to other service providers.
Household income (< NAD 2000) is statistically significant but has negative signs. The result shows that
resource-poor farmers with income less than N$ 2000 would still not pay even if income increases beyond N$
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Journal of Natural Sciences Research www.iiste.org
ISSN 2224-3186 (Paper) ISSN 2225-0921 (Online)
Vol.6, No.16, 2016
2000. This implies that payment for extension services does not depend on income but on the need to understand
the importance of the services rendered which most farmers find difficult to comprehend.
Since the extension service will be based on cost per hectare serviced, farmers with larger farms will pay more
than smaller farms. The result shows that an increase in one unit of farm size will lead to a decrease in the
willingness to pay for extension services by 3%. Household size was also found to have similar effects. An
increase in household size by one person decreases the farmer’s willingness to pay by 4%. As the household
enlarges, the farmer will have a huge responsibility of catering for a large family and may not have extra
resources to pay for extension services. If a farmer belongs to a cooperative, the likelihood that they will pay is
lower by 91% compared to when they are not a member. This is because the farmer will expect the cooperative
to subsidise and cater for a larger percentage of their extension service needs. Farmers with an income less than
2000 are less likely to pay for extension services than those that have higher.
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