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Assessment of Profit Efficiency of Smallholder Maize Farmers in Limpopo Province, South Africa: A Stochastic Frontier Approach

 oraz   
31 mar 2025

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Multicollinearity test of variables included in the profit efficiency/inefficiency analysis

Variables Collinearity statistics

tolerance VIF
Efficiency variables
Fertiliser cost .531 1.883
Pesticide cost .430 2.326
Herbicide cost .447 2.238
Hybrid seed cost .499 2.005
Water cost .768 1.302
Labour cost .638 1.568
Tractor cost .649 1.542
Transport cost .775 1.290
Storage cost .620 1.613
Processing cost .372 2.691
Mean VIF 1.846

Inefficiency variables

Age .629 1.589
Education level .808 1.238
Household size .961 1.040
Farming experience .742 1.347
Mean VIF 1.304

Maximum likelihood and profit inefficiency determinants

Parameters Coef. St. Err. p-value t-value
Production factor
(Constant) β0 –17.796 3.908 0.000 –4.55
Fertiliser cost β1 –.013 .623 0.839 –0.20
Pesticides cost β2 .053 .823 0.519 0.65
Herbicides cost β3 .023 .108 0.830 0.21
Hybrid seed cost β4 –.053 .081 0.510 –0.66
Water cost β5 –.160 .047 0.001 –3.42***
Labour cost β6 –.035 .057 0.536 –0.52
Tractor cost β7 –1.591 .534 0.003 –2.98***
Transport cost β8 –.126 .074 0.087 1.71*
Storage cost β9 .111 .108 0.305 1.03
Processing cost β10 –3.893 .450 0.000 8.66***
Insig2v 1.891 .084 0.000 22.63
Inefficiency variables
(Constant) αo –8.536 14.031 0.543 –0.61
Age δ1 .129 .191 0.501 0.67
Education level δ2 –.748 .678 0.070 1.68*
Farming experience δ3 –.019 .082 0.042 –2.68**
Household size δ4 –613 .506 0.226 –1.21

Sigma 2.574724
Mean dependent var 2.367 SD dependent var 3.546
Log Likelihood –727.72436
Number of obs 307 Chi-square 231.385
Prob > chi2 0.000 Akaike crit. (AIC) 1489.449

Population and sample size of the study

District Targeted smallholder farmers (N) Sample size
Capricorn 107 22
Mopani 379 77
Sekhukhune 378 76
Vhembe 510 103
Waterberg 144 29
TOTAL 1518 307

Frequency distribution of maize farmers

Efficiency class index Frequency Percentage
< 0.60 54 16.29
0.60–0.69 118 38.44
0.70–0.89 84 27.36
0.90–099 5 17.92

Mean: 0.612
Min: 0
Max: 0.90