Technical efficiency drivers of farmer-led restoration strategies, and how substantial is the unrealised potential for farm output?

CONTEXT: In Ethiopia, similar to other parts of Sub-Saharan Africa, the effects of farmland degradation on ecosystem services and well-being are especially prominent as 85% of the population lives in rural areas and depends on agriculture for their livelihoods. Existing farmer-led restoration activities involve integrating trees on farms (ToF) through traditional agroforestry or woodlots systems. Although ToF practices can potentially bring economic and ecological gains, their production systems and efficiency in terms of input use remain overlooked in the current literature.OBJECTIVE: The study analyses the technical efficiency levels in Ethiopia's home gardens and woodlot systems and examines the drivers contributing to technical efficiency.METHODS: The study estimates the technical efficiency of farmers who implement the ToF strategies, i.e. the extent to which the farmers can achieve the highest output level given their set of inputs. Deviation from the total technical efficiency is then referred to as unrealised potential. We also analyse the drivers of technical inefficiency by controlling for geographical, biophysical, and production system attributes of woodlots and agroforestry patches, as well as household characteristics and institutional settings. We use a one-step Latent Class Stochastic Frontier Modelling approach based on the cross-sectional household data of 543 home gardens and 426 woodlot systems patches in Ethiopia.

Automated summary

This study examines the technical efficiency levels of home gardens and woodlot systems in Ethiopia and investigates the factors that contribute to technical efficiency.