Technical Efficiency of Soybean Farms and Its Determinants in Saboba and Chereponi Districts of Northern Ghana: A Stochastic Frontier Approach

This study analyzes the level and determinants of technical efficiency of soybean farms in the Saboba and Chereponi districts of northern Ghana. A multi-stage sampling technique was used to select 200 soybean farmers from which cross-sectional data was collected using a structured questionnaire. Data collected includes farmers’ socio-economic characteristics such as age and education as well as input and output quantities and prices. Data was analyzed using the stochastic frontier approach. Results showed a mean technical efficiency estimate of 53 percent and the return to scale was 0.75. Location of farm, participation in the Agricultural Value Chain Mentorship Project and age of farmer were found to be important in explaining technical inefficiency among soybean farmers. This implies that farmers in the short run can increase their production by 47 percent by adopting practices of the best soybean farms in Saboba and Chereponi districts of northern Ghana.