The Profit Efficiency Among Kenyan Maize Farmers

An approach based on true random effects (TRE) is employed to estimate profit efficiency (PE) in maize farming, as well as its determinants. Primary data on maize farmers was collected in Kenya's Uasin Gishu region, one of the country's major producers of maize. It is evident from the mean PE of 0.62 that maize farmers have room to increase their profits. Analyzing profit elasticity, maize farming profits are elastic to the price of maize but inelastic to the price of inputs. When the household head is male, when the household size is greater, and when the farm size is larger, the inefficiency of profit is reduced significantly. Despite this, factors such as the distance between home and the maize farm, soil characteristics, maize diseases, along with natural disasters significantly increase profit inefficiency. According to the findings of the study, maize prices are more effective targets for developing supportive policies than input prices. To significantly increase PE, farmers would benefit from programs designed to improve their production and management skills to preserve soil health and minimize damage caused by disease and natural disasters. Furthermore, increasing PE would be achieved by improving farm size through land-use policies