Farm size, relative efficiency and agrarian policy in Cote d'Ivoire: profit function analysis of rice farms
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This paper examines the relative economic efficiency of small and large rice farms in Cote d'Ivoire using a profit function approach. No
differences in the relative economic efficiency of small and large farms were found. This conclusion is robust under alternative model
specifications. Agrarian reforms directed towards further concentration of landholding for large farms in Cote d'Ivoire cannot be justified
based on economic efficiency. Results show that access to credit and use of modem rice varieties significantly increase profits. To improve
technical efficiency of rice farms, an accelerated program to provide information, credit, improved seeds and other inputs is needed. When
all the farms (i.e. large and small) are taken together, there is evidence of allocative inefficiency. Strategies are needed to remove such
management related inefficiencies in rice production either through the development of a better market price information system or effective
farmer-oriented technical training programs by rice extension workers.
