Exploring the drivers of technical efficiency in Senegals agricultural production sector

Abstract

Most agricultural farmers in Senegal make limited use of key agricultural inputs such as fertilizers, certified seeds, irrigation, mechanization and pesticides. Such situation happens in a context where most farmers are exposed to droughts, land degradation, and erratic climatic shocks. These factors typically lead to negative effects on technical efficiency, and therefore unfavorable outcome results in terms of food production, income, and food security. This paper uses the Stochastic Production Frontier model to determine the efficiency of agricultural production in Senegal. The results show that Senegalese agricultural households produce 53% of the output that could potentially be produced with the observed input levels and their available technology. Main drivers of technical inefficiency behind this finding were limited use of fertilizers (both organic and inorganic), low levels of mechanization in agricultural practices, and high vulnerability to droughts, which significantly limit technical efficiency in agricultural production. The implication in terms of agricultural policy suggests that improving technical efficiency would require a combination of measures oriented to promote a wider use of fertilizers, promotion of a more mechanized and equipped agricultural processes, and overall to implement mechanisms to mitigate or reduce the impacts of droughts on agricultural production.