Socio-economic evaluation and technical efficiency of soybean (Glycine max L. Merrill) production in North-West Nigeria: A parametric approach

This aim of study examined socioeconomic evaluation and technical efficiency (TE) of soybean (Glycine max) production with a parametric approach in North West, Nigeria. The multistage sampling method was used to select 160 soybean farmers. Primary data were used. Data were analyzed using descriptive statistics and the stochastic production efficiency frontier model (SPEFM). The result shows that the mean age of a soybean farmer was 46 years. Soybean production was profitable with an estimated Gross Margin and Net Farm Income of 899,237.80 and 824, 468.22 Naira respectively. The Gross Margin Ratio and Rate of Return on Investment was calculated at 0.583 and 1.15 respectively. The significant socio-economic factors that increase the TE of soybean production include household size, age, years of experience, level of education, members of cooperatives, and number of extension contacts. The mean TE scores of soybean farmers was 53.77%, leaving a gap of 46.23% for improvement. This study recommends that credit with single-digit interest rates should be made available to soybean farmers.