Abstract

This study examined the relative technical efficiencies in input use by credit and non-credit user farmers in Maruleng Municipality of Limpopo Province, South Africa. The differentials in the technical efficiency levels of maize and green beans farmers were examined. The study used primary data collected from a stratified random sample of 72 emerging farmers of which 32 were credit users and the remaining 40 were noncredit users. Data were analyzed using Cobb-Douglas Production function model. All the variable inputs examined were statistically significant for both credit and non-credit users except pesticides and irrigated land inputs for maize farmers. The results of the study revealed that technical efficiency levels between credit users and non-credit users is too wide being 9.843 for credit users and 2.892 for non-credit users. The implication for this is that, the odds of being efficient is related to credit use and thus credit is a necessary tool to improve farmers’ technical efficiency levels. The study, therefore, recommends that the existing farm credit system including other agricultural programmers’ should be reviewed, refocused, and be more accessible to emerging farmers in order to improve efficiency in the input use by emerging farmers. 

Key words: Technical efficiency, credit use, emerging farmers.