A Stochastic Frontier Modeling of Boro Rice Farmers in Bogura District of Bangladesh

Abstract

Due to its importance in the agricultural area, technical efficiency has enhanced in this study to recognize the contribution
of the assigned factors of the farmers of Bogura district, Bangladesh following multistage sampling technique. To
accomplish its goals stochastic frontier model exploits using authors surveyed cross-section data of 98 farmers collected in
2017-2018 cropping year. The maximum likelihood estimate of parameters and the efficiency scores of individual farmers
are calculated using stochastic frontier approach. Although the model captures the mean efficiency, 0.803 it is evident that
maximum 45.93% farmers belong to the efficiency group 80-90 percent and 18.37% belong to the groups, 60-70 and 70-80.
Besides these, 15.30% farmers expose to the efficiency group greater than or equals to 90 and rest 1.02% farmers to the
group less than 60. Furthermore negatively skewed pattern of the farmers’ technical efficiencies are observed by the density
curves. The empirical evidence suggests that the production frontiers of seed cost and irrigation cost is positive and
statistically significant for Bogura district indicating that an increase of these variables could increase Boro production.
Thus it is recommended that Boro farmers need to take care about seed and irrigation cost as well as their systems to
improve the production which could be an important message for the marginal farmers and concerning authorities for the
betterment of the food reservation of the country.