Table of Contents
Economics Research International
Volume 2014, Article ID 802706, 10 pages
http://dx.doi.org/10.1155/2014/802706
Research Article

Analysis of Economic Efficiency and Farm Size: A Case Study of Wheat Farmers in Nakuru District, Kenya

1Department of Household and Consumer Economics, Universität Hohenheim, Fruwirthstraße 48, 70599 Stuttgart, Germany
2Department of Agricultural Economics, University of Nairobi, P.O. Box 30197, Nairobi 00100, Kenya

Received 21 April 2014; Revised 17 August 2014; Accepted 20 September 2014; Published 16 October 2014

Academic Editor: Jean Paul Chavas

Copyright © 2014 Samuel Mburu et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The primary objective of this study is to examine the effect of farm size on economic efficiency among wheat producers and to suggest ways to improve wheat production in the country. Specifically, the study attempts to estimate the levels of technical, allocative, and economic efficiencies among the sampled 130 large and small scale wheat producers in Nakuru District. The social-economic factors that influence economic efficiency in wheat production have also been determined. Results indicate that the mean technical, allocative, and economic efficiency indices of small scale wheat farmers are 85%, 96%, and 84%, respectively. The corresponding figures for the large scale farmers are 91%, 94%, and 88%, respectively. The number of years of school a farmer has had in formal education, distance to extension advice, and the size of the farm have strong influence on the efficiency levels. The relatively high levels of technical efficiency among the small scale farmers defy the notion that wheat can only be efficiently produced by the large scale farmers.