Determinants of Efficiency in Small Scale Agri-Farm Production: A Case of Muzaffargarh-Pakistan

Productive efficiency of agriculture-farmers is essential for the growth of the economy. So it is an important issue to check the productive efficiency of farmers in Pakistan The major objective of this study was to find out determinants of efficiency in small scale agriculture-farm production in district Muzaffargarh. We used primary data which was collected through a structured questionnaire. Two hundred (200) farmers, who were cultivating major crops, were randomly selected Multiple Regression and Correlation methods were used to draw results. We found that firms have technical efficiency between the range of scores 0.41 to 1.00 and 0.81 mean. The regression analysis showed that coefficients of age of the farmer, expenditures on diesel, fertilizers, pesticides and seeds, farm size, hired labor loan access, liabilities, profit and interest rate have a positive effect on productive efficiency of farmer while the coefficients of education of farmer, has a negative effect on their productive efficiency. Thus, we conclude that education is necessary to attain maximum level of productive efficiency.