Technical Efficiency Differentials of Vegetable Farmers

The aim of this study is to estimate the technical efficiency and to identify the factors affecting technical inefficiency of vegetable crops in Vavuniya district in Sri Lanka. Fifty farmers who are cultivating three vegetables namely, brinjal, long beans and tomato were selected randomly. The collected data were analysed using ordinary least square estimates of Cobb Douglas production function and maximum-likelihood estimates of Cobb ¿Douglas stochastic production model. In both models, yield of each vegetable crop was regressed as a function of size of land, labour, capital and raw materials and the estimated results from both models show that size of land and raw materials have significantly impact on brinjal output while only raw materials and capital affect on the productions of long beans and tomato respectively. Determinants of technical inefficiency among the characteristics of farmers were identified by using Tobit model and the results revealed that, ownership of land and credit accessibility have negative sign for all three crops represent that, the farmers who cultivate the vegetable crops in their own land tend to be more efficient than tenant cultivators.