Abstract

Improving technical efficiency (TE) is crucial for the sustainable growth of smallholder agriculture in developing countries. Despite increased wheat output, the current supply is insufficient to meet growing demand, as wheat yields remain low regardless of more efficient farming practices. As a result, we designed this research to calculate and determine the causes of variation in the study area. A single-step stochastic frontier production model is used to analyze the information collected from respondents through in-person interviews. The average technical efficiency of wheat producers was found to be 90%, meaning they produced 10% less than their potential. The study also indicates that agricultural inputs, particularly fertilizers, and pesticides, significantly reduce wheat yield at 1% and 5% respectively. An increase in these inputs may lead to a decrease in wheat yield. However, at the 10% threshold, farm size significantly impacts yield. Socioeconomic factors such as level of education, farming experience, cost of seeds, and soil fertility have been identified as contributors to inefficiency in the research area. This study demonstrates that farmer inefficiency rather than random variance is the primary cause of the gap between actual and potential yields. Therefore, addressing issues impacting the technical efficiency of wheat producers in Qu Zhou County is the best option.