Production risk and technical inefficiency of bean (Phaseolus vulgaris) cultivation in Bangladesh: Do socio-economic factors matter?

Abstract

The productivity of beans has been boosted in recent decades all over the world. Nevertheless, bean production variability is observed from farm to farm indicating the presence of production risk and inefficiency in bean cultivation. This study aims to investigate the production risk and technical inefficiency of bean farms in Bangladesh. A total of 80 bean farmers were selected from Bangladesh using a purposive random sampling technique. The Kumbhakar model was employed to compute the risk and inefficiency of bean farmers. The result shows the significant production-increasing effect of irrigation and farm size while it also implies the significant production-decreasing effect of seed and fertilizer. In addition, the risk of bean production has increased with the farm labor, irrigation, and farm size while the risk of bean production has reduced with the fertilizer. The result of technical efficiency implies that farmers can significantly decrease their input use while maintaining the same level of output. In addition, technical inefficiency has increased with the age and training of farmers while it has decreased with the extension services received by the farmers. Adopting appropriate scientific management practices is imperative to increase efficiency and reduce the production risk of bean farmers. Additionally, the government should provide sufficient credit facilities and enough subsidies on expensive inputs that help to decrease the financial risk of bean growers.

Keywords

• Bean
• Productivity
• Production risk
• Inefficiency