Technical efficiency of smallholder farmers in sesame production (Ethiopia)

Ethiopian smallholder farmers are lacking the technical skills required to make efficient use of available resources. This study aims to increase the efficiency of smallholder farmers in sesame production by estimating efficiency levels and identifying the variables influencing those levels. Multistage sampling was used to collect cross-sectional data from randomly selected household heads. To evaluate efficiency levels, stochastic frontiers analysis with the Cobb–Douglas function is fitted. The ordinary least squares (OLS) estimation method was employed to identify the variables that influence the farmers’ efficiency levels. The average technical efficiency was 67.58%. The technical efficiency of smallholder farmers was positively impacted by family size, education level, extension contact, and credit access, while negatively impacted by the distance of the sesame plot from the homestead. Moreover, the finding indicated that sesame producers in the study area have the opportunity to increase their efficiency. Hence, it is advisable to implement interventions that will increase smallholder farmers’ access to credit, agricultural extension services, and basic education.