Economic Efficiency Analysis of Rice Production in Fogera District, South Gondar Zone of Amara Regional State, Ethiopia

The study examined the level of efficiency of rice producers and investigates the determinants of allocative and economic efficiency in Fogera district of Ethiopia. for the successful accomplishment of the study, we use multistage sampling technique to select 153 rice producers and data had been collected using interview and questioners for 2018 production season. The mean technical, allocative and economic efficiencies were 79%, 86% and 68% respectively. The estimation result from Tobit regression result revealed that age and sex were the variables that affect allocative inefficiency positively and significantly while education and experience influences allocative inefficiency negatively and significantly. Similarly economic inefficiency was positively and significantly influenced by age, sex and extension service while training affects economic inefficiency negatively and significantly. Thus, the researcher recommended policies targeting institutional improvements (training, education and membership of farmer associations) and focusing on experience of farmers would improve farmer’s efficiency in rice production.