OFF-FARM HOUSEHOLD LABOUR ALLOCATION AND TECHNICAL EFFICIENCY AMONG GROUNDNUT FARMERS IN EASTERN UGANDA

Authors

  • R. KIIZA
  • S. SENTUMBWE
  • J. MUGISHA

Keywords:

Off-farm work; Labor allocation; Technical efficiency, Eastern Uganda

Abstract

Integrated Pest Management (IPM) technologies are aimed at improving farmers' incomes and have been adopted by some farmers in Uganda. However, many farmers obtain off-farm income from various activities and have to decide whether or not to further participate in off-farm activities and how much of their labour to allocate to such activities to maximize household utility. Therefore, this paper examines factors that influence the likelihood of farm households participating in off-farm work and factors that determine the amount of off-farm labour supply. It also investigates the effect of household labour re-allocation to off-farm activities on technical efficiency. Data Isere collected from 216 groundnut farmers in Eastern Uganda through a household survey in locations where the IPM project had set up demonstration plots. A bivariate probit model was used to determine factors influence the likelihood of participation in off-farm work. Weighted least squares model was used to determine factors influencing off-farm labour supply. A stochastic production frontier model was used to determine the level of technical efficiency among groundnut farmers. Age, education, household size, number of children active in farming, location, off-farm income, livestock and poultry farming and farm size significantly influence the likelihood of the household's participation in off-farm work. Education of household head and off-farm wage rates positively influence labor supply to off-farm work. Labor re-allocation to off-farm work among IPM adopters does not necessarily decrease TE at the farm but it does for the non-IPM adopters at 10% level of significance.

Published

2020-09-07