Production relationships among compound and non-compound farms in Imo state, Nigeria

Abstract

The objective of the study are to examine and identify the pattern of resource allocation, compare the productivity and efficiency in compound and noncompound farms, and make recommendations for enhanced performance in the two farm types. The sample size comprised 240 farmers who were sampled using the multi-stage sampling technique. Structured questionnaires were used in the collection of primary data. The Chow F-test and profit function analysis were adopted in determining and comparing the pattern of resource allocation, productivity and efficiency among the two groups of farmers. The results show that more aggregate resources were allocated to non-compound farms. Resources such as labour and capital have higher marginal value products in non-compound farms while seeds, fertilisers and agro-chemicals were equally productive in two farm types. The existence of resource use disequilibria was apparent in the two farms. Farmers were not equally technically efficient in both farm types. However, the farmers were economically more efficient in the compound farms. It is recommended that a bio-waste hitherto not being utilised to the non-compound farms to increase their fertility and hence economic efficiency be formulate