Resource use efficiency among small-scale farmers in selected areas of western Kenya

Abstract

Food crops production by small-scale farmers who dominate the agricultural sector in Kenya is characterised by low actual yields compared to what is technically and economically feasible. This study investigates the production pattern of the small-scale farmers in Westem  Kenya with the view to estimate the level of their resource use efficiency. To capture the specific objectives of the study, both budgetary and production function analyses were used to estimate the net farm income, the marginal influence of the productive inputs and, hence, the profit maximising ability of the farmers. The results indicate that the farmers in the study area obtained an average net farm income of Kshs. 2,910.3; an indication that food crop production is a profitable enterprise in the area. However, it was observed that the farmers underutilized modern types of inputs (fertilizer, pesticides and improved seeds) but overutilized farm labour. To  attain economic efficiency therefore, it is recommended that the farmers increase their use of modern farm input but decrease the use of labour up to the point where the marginal value product of each input is equal to its marginal cost.