Article publication date: 2014-03-01
Vol. 32 No. 1 (yearly), pp. 1-10.
Technical efficiency, wheat farms, panel data, Yemen Republic.
This study is additional knowledge for the production of wheat, as more a food crop consumption and less productive in Yemen and with the aim of increasing production of it to access or approach the self-sufficiency, Where the study aimed to test the efficiency of technological changes on the level of wheat farms in the region of North Highlands in the Republic of Yemen over a period of fifteen years (1996 to 2010) using North Highlands region panel data. Results from the stochastic production frontier analysis indicate that all inputs included in the model were positively significant; the average annual rate of technological change for wheat was 5% at decreasing rate, while average technical efficiency of wheat has slightly increased from 73.7% to 74.1% over this period due to improved performance of farms as well as socio-economic factors as farm size, family size, Age, education, fragmentation and time. Age, fragmentation and time are factors negatively influencing technical efficiency while the relationship with farm size, family size and education are positive. Under the current production techniques and the use of agricultural inputs, there is a possibility to increase wheat production by 26%. Policy recommendations include consolidation of land and strengthening of agricultural research, extension services, improved seeds and supporting institutions for agricultural production.