Determinants of Technical Efficiency of Rice Farms in North-Central and North-Western Regions in Bangladesh

This paper estimates a quadratic stochastic frontier production function to examine the determinants of technical efficiency in rice farming in Bangladesh using the computer program FRONTIER 4.1. Primary data has been collected using multi-stage random sampling technique from twelve villages in north-central and north-western regions in Bangladesh. Rice cultivation displayed much variability in technical efficiency ranging from 0.16 to 0.94 with mean technical efficiency of 0.83 which suggested substantial gains in output with available resources and existing technologies. The analysis of the determinants of technical efficiency revealed that the age and education of the household heads, availability of off-farm incomes, land fragmentation, access to microfinance, extension visits, and regional variation were the major factors that caused efficiency differentials among the farm households studied. Hence, the study proposes strategies such as providing better extension services and farmer training programs, ensuring access to agricultural microfinance, reducing land fragmentation and raising educational level of the farmers to enhance technical efficiency.