The Effect of Extension Services Access on Technical Efficiency Among Smallholder Sugarcane Farmers in Kilombero Valley: Evidence from the Propensity Score Matching Approach
Abstract
This study assesses the effect of access to extension services on the Technical Efficiency (TE) of
Smallholder Sugarcane Farmers (SHSCFs) in Kilombero valley, Tanzania. Based on a crosssectional survey of 274 randomly selected SHSCFs, the study compared the Cobb-Douglas (CD)
and translog frontier models and selected CD which fitted well in the dataset. The Propensity
Score Matching (PSM) method was then applied to determine the effect of extension service
access on TE. The estimated mean technical efficiency is 60%, suggesting that there is room
for improving efficiency in the use of production inputs at the disposal of SHSCFs.
Furthermore, based on the propensity score matching method, the analysis indicates that
access to extension services generates a positive and significant differential effect on technical
efficiency. As such, policies are needed to strengthen the institutions providing extension
services in order to not only ensure availability and make them readily accessible but also
improve the quality of the services provided. Limitations and avenues for further research are
also highlighted