Effects of Socioeconomic and Institutional Characteristics on Profit Efficiency of Maize Farmers in Ogun State, Nigeria

Abstract

Improving the profitability and efficiency of maize production is essential for enhancing farmers’ livelihoods and strengthening food security in Nigeria. This study examined the effects of socioeconomic and institutional characteristics on the profit efficiency of maize farmers in Ogun State, Nigeria, with particular attention to farmers cultivating traditional varieties, improved varieties, and both varieties. The study employed cross-sectional data collected from 240 maize farmers through a structured questionnaire. Descriptive statistics were used to describe the socioeconomic and institutional characteristics of the respondents, while a Cobb–Douglas stochastic frontier profit model estimated by maximum likelihood was used to assess profit efficiency and identify the socioeconomic and institutional factors associated with profit inefficiency. The results revealed substantial differences in profit efficiency across the three variety categories, with mean efficiency scores of 0.418, 0.838, and 0.810 for traditional-variety, improved-variety, and both-variety farmers, respectively. Analysis of variance confirmed that the differences in profit efficiency across the variety categories were statistically significant (F = 7.804; p<0.001). The socioeconomic variables exerted heterogeneous effects on profit inefficiency. Gender significantly reduced profit inefficiency among traditional- and improved-variety farmers, while age significantly reduced inefficiency among improved-variety farmers. Household size reduced inefficiency among traditional-variety farmers but increased among improved and both-variety farmers. Farming experience significantly increased inefficiency among traditional-variety farmers, whereas education significantly increased inefficiency among farmers cultivating both varieties. Institutional factors also exhibited category-specific effects. Cooperative membership significantly reduced profit inefficiency among traditional-variety farmers, while extension contact significantly increased inefficiency among improved-variety farmers. Access to storage facilities significantly increased inefficiency among both traditional and improved-variety farmers, whereas credit access was not statistically significant across the relevant models. The findings demonstrate that socioeconomic and institutional characteristics influence maize farmers’ profit efficiency in different ways depending on the variety-production category. The study therefore recommends targeted extension services, stronger farmer cooperatives, improved access to productive resources and market-oriented storage facilities, and farmer-specific management interventions to enhance profit efficiency, particularly among traditional-variety farmers.