Production efficiencies among Bank of Agriculture loan beneficiaries and non-beneficiaries in Katsina State, Nigeria

This study compares the production efficiencies of cowpea farmers who are Bank of Agriculture loan beneficiaries (CFLB) with non-beneficiaries (CFLNB) in Katsina State, Nigeria. Using multi-stage sampling, 144 respondents were surveyed, and data were analyzed with the stochastic production frontier model. Results show mean technical, allocative, and economic efficiencies of 0.92, 0.82, and 0.74 for beneficiaries, compared to 0.80, 0.68, and 0.55 for non-beneficiaries, respectively. Beneficiaries outperformed non-beneficiaries across all efficiency measures, although both groups exhibited suboptimal resource allocation. To enhance output and profitability, targeted resource-use adjustments are recommended.