Determinants of technical efficiency among smallholder maize producing farmers in Guto Gidda district, Oromia, Ethiopia

Maize is a key crop for food security and rural livelihoods in Ethiopia, yet little is known about the factors that affect how efficiently smallholder farmers produce it in Guto Gidda District, Oromia. This study addresses this gap by examining the determinants of technical efficiency among maize farmers. Data were collected from 423 households using a structured questionnaire, and a two-stage sampling process was followed to select three kebeles (Loko, Uke Badiya, and Aleltu) based on their maize production potential. The data were analyzed using descriptive statistics, Stochastic Frontier Analysis (SFA), and a two-limit Tobit regression model. Results from the SFA showed an average technical efficiency of 0.804, with scores ranging from 0.002 to 0.989, suggesting that farmers could, on average, improve output by nearly 20% using existing inputs through better resource management. The two-limit Tobit regression indicated that household head age, education, access to credit, engagement in non-/off-farm activities, training, and adoption of improved maize varieties significantly increased technical efficiency. In contrast, larger landholdings were associated with lower efficiency, likely due to fragmented plots, poor soil quality, and labor constraints. These findings suggest that policies and programs should focus on improving access to credit, promoting off-farm income opportunities, providing targeted training, encouraging adoption of improved seeds, and supporting better land management. Addressing these factors can help farmers produce maize more efficiently, contributing to food security and sustainable livelihoods in the district.