STOCHASTIC ANALYSIS OF ALLOCATIVE EFFICIENCY OF UPLAND RICE PRODUCTION SYSTEM IN SOUTH EAST NIGERIA

This study examined the allocative efficiency of South East Nigeria's upland rice producing system using stochastic analysis. The study's precise goals were to ascertain the elasticity of the upland rice production system in the study area, assess the costs and returns associated with it, and determine the allocative efficiency of the system. Purposive and multi-stage random sampling techniques were used to select one hundred and twenty (120) respondents for the study. Objectives (i) and (iii) were analysed using allocative efficiency model, while objective (ii) was realized using cost and returns analysis. The allocative efficiency analysis results showed that educational level, labour, seed (planting material), fertilizer, pesticides, herbicides and capital had positive coefficients while farm size had a negative coefficient. Upland rice production system had a return per hectare of 26.5% indicating that the venture is operating at the increasing returns to scale. However, there is need for government and Non-Government Organization (NGO) to aid farmers in procuring irrigation facilities to guide against poor rainfall distribution, which often affect their crop yield.