Determinants of allocative and economic efficiency in crop-livestock integration in western part of Ethiopia evidence from Horro district: data envelopment approach

Sustainable development can be achieved through integrations of livestock and crops farm levels that generate higher economic efficiency in saving production costs through combining of crop and livestock. So, this study analyzed the allocative and economic efficiency of smallholder farmers in mixed crop-livestock production in Ethiopia evidence from Horo district using cross sectional data collected from 152 households in 2019/2020 cropping season by using structured questionnaires’. Data envelopment analysis was used to estimate the allocative and economic efficiency score. From the results of data envelopment analysis mean allocative efficiency was (57.0%) and economic efficiency (38.4%). Thus existence of about 61.6% economic inefficiency in the production of mixed crop-livestock production. Moreover, Tobit regression model results show that allocative efficiency affected by extension, off-non-farm and education levels of household positively. While economic efficiency positively affected by credit use, terrace and extension service positively and distance to the market negatively. Hence government should take steps for the improvement in education levels of household, development of terrace, expansion of nonfarm sectors and reform with extension service