Malaysian Journal of Sustainable Agriculture (MJSA)

Agriculture remains a crucial economic activity in the Niger Delta, yet inefficiencies in resource utilization hinder its profitability and sustainability. This study applies Data Envelopment Analysis (DEA) to evaluate the relative efficiency of farm production activities for Cassava, Rice, Cocoa, Plantain, and Oil Palm in the region. The objectives of the study were to: measure the relative efficiency of different farm production activities in the Niger Delta using the DEA technique; estimate the profitability of selected crops (Cassava, Rice, Cocoa, Plantain, and Oil Palm) by analyzing yield, cost structures, and economic benefits; identify key determinants of farm efficiency using the Tobit regression model to examine the impact of cost, productivity, and other relevant factors; compare efficiency levels across different crops, determining which operate at optimal efficiency and which require resource allocation improvements; and provide policy recommendations to enhance agricultural efficiency and profitability, focusing on cost-effective solutions and productivity-enhancing techniques. Additionally, Tobit regression was used to identify key determinants of farm efficiency, focusing on the impact of cost structures, productivity, and other relevant factors. The profitability analysis reveals that Plantain and Rice exhibit the highest economic benefits, while Cassava and Oil Palm demonstrate lower profitability despite their significant production volumes. DEA findings indicate that while some crops operate at optimal efficiency, others require improved resource allocation strategies. The Tobit regression model identifies cost as a major constraint on efficiency, while increased productivity significantly enhances farm performance. Findings from this study provide empirical insights to guide policy interventions aimed at enhancing agricultural efficiency, reducing production costs, and promoting sustainable farming practices. The study contributes to evidence-based policymaking by integrating advanced quantitative techniques with practical agricultural insights, ultimately fostering economic transformation and food security in the Niger Delta.