Abstract

Dimeji Solanke, Kayode Olakeinde and Judith Adedeji

This study examined the pattern (sources and contract form) of labour use and the effects on production efficiency of food crop farms in Ogun State, Nigeria. The study was based on primary data collected from a cross - section of 170 food crop farmers that were selected using a multistage sampling technique. The data were collected using structured questionnaire and analyzed using descriptive and regression (Multinomial logit, Tobit and Stochastic frontier) techniques. The study showed that majority (82.4%) of the food crop farmers were males, aged between 41 and 60 years (66.4%) and had at least primary school education (91.2%). The mean household size was five persons. The mean farm size was 1.8 ha with a mean farming experience of 25 years. The most widely used labour source for crop production in the area was household members. However, 64.1% of the farmers also recruited some hired labour. These were mostly employed on annual (46.8%) and /or job specific (33.9%) contracts. The mean labour use by farmers in the sample was 72.6 manday/ha; 34.6% of which were supplied by household members, 33.5% by labour hired on Annual Contract (AC), 14.5% by labour hired on Job Specific Contract (JSC) and the rest (10.8%) by Daily Paid Contract (DPC). The mean technical, allocative and overall economic efficiency were respectively 81.9, 42.0 and 34.4.0%. Stochastic frontier and Tobit regression analysis revealed that while the use of labour hired on DPC is associated with higher Technical Efficiency (TE), Allocative Efficiency (AE) and overall Economic Efficiency (EE) than what obtained with reliance on only household labour, the difference are not statistically significant. However, the use of labour hired on JSC is associated with significantly (p<0.01) higher TE but significantly (p<0.01) lower AE and overall EE. Similar results were obtained in respect of AC, while the use of labour saving technologies (herbicides and tractor services) were revealed to be associated with significantly (p<0.05) higher TE, AE and EE. The study concludes that although the use of JSC and AC could increase TE of farmers, it is at a cost of higher allocative and overall economic inefficiency. However, EE could be enhanced by increase use of labour saving technology including herbicides and tractor services. Hence the study recommends farmers should be taught the modern technology of food crop production to enhance the efficiency of production.