Estimating Technical Efficiency among Smallholder Potato Producers in Welimada, Sri Lanka

Abstract

The objective of this research was to estimate the technical efficiency and identify determinants associated with technical inefficiency of potato farms in the Welimada area. To calculate the technical efficiency and to identify the determinants of technical inefficiency, the Stochastic Production Frontier Model was used. Collection of farm level data commenced through interviews from February to March 2016 from 100 farmers in the study area. The study results indicated that output could increase by 28% without additional inputs and available technology at the farm level. Farmers with better education, experience, and training in potato farming who apply both organic and inorganic fertiliser and employ more family labour tend to be more efficient. The direct positive relationship between farm size and technical efficiency indicated the potential of improving potato yield by further expanding the cultivating area or consolidating land