Measurement of Technical Efficiency of Paddy Farms at Jhenaidah District in Bangladesh: A Case Study by Using Cobb Douglas Production Function

This study's primary goal is to measure the technical efficacy of Amon paddy farms and identify the key variables that significantly influence the degree of technical inefficiency of the sample farms. Using a multistage random sampling technique, 200 Amon rice-producing farms in the Jhenaidah district were sampled for this study. The technical efficacy of Amon rice farms is estimated using the Cobb-Douglas production function method. The Cobb-Douglas production function approach's empirical findings indicate that the technical efficiency of Amon rice production is, on average, 0.95. This suggests that the studied region has a high level of technical efficiency. The factors influencing the degree of inefficiency of the Amon rice farms are also determined using an inefficiency impact model. The production of paddy was favorably connected with farm size, as indicated by the regression coefficient of farm size, which is 0.52. Additionally, it reveals that labor costs, irrigation cost, seed costs, and plowing cost are crucial elements that influence how efficiently Amon rice is produced. According to the estimated inefficiency impact model's findings, the technical inefficiency of Amon rice production is adversely correlated with farm size, age, education, training and credit availability. According to this study, actions to expand credit opportunities, education, and training are essential to lowering rice production's technical inefficiency in the study area. According to the results, it is advised that variables that positively and significantly affect production efficiency be researched and developed for best results toward sustainable agricultural and rural development in Bangladesh.