COMPARATIVE TECHNICAL EFFICIENCY OF INSURED ANDUNINSURED COCOA FARM OPERATORS IN ONDO STATE, NIGERIA

This study evaluates the technical efficiency of insured anduninsured cocoa farm operators in Ondo State, Nigeria. Study data were obtainedfrom 60 insured and 60 uninsured farm operators. Descriptive statistics, stochasticfrontier production function and t-test were used for the data analysis. The meantechnical efficiency of the insured farm and uninsured farm operators was 76% and70% respectively. Evidence from the t-test revealed that there was a significantdifference between the technical efficiency of the insured and uninsured farmoperators (t-cal. = 2.513; p = 0.012). The significant determinants for the output ofthe insured farm operators were farm size and the cost of pesticides while only thecost of pesticides was significant in determining output for the uninsured farmoperators. The study therefore recommends policies aimed at promotingagricultural insurance among cocoa farmers, reducing the cost of pesticides,increasing farm size as well as encouraging young and well-educated individuals toinsure their farming activities.