HIV/AIDS and Farms’ Production Efficiency in Benue State, Nigeria

The paper evaluates the impact of the health status of farm households with respect to HIV/AIDS on their cropping patterns, incomes and technical efficiencies in Benue State of Nigeria. Primary data was collected from 155 farm households made up of 55 HIV/AIDS and related sicknesses infected households and 100 non- infected households. The results demonstrated that HIV/AIDS has led to decreased farm size and reduction in the variety of crops cultivated on HIV farms. The average gross revenue, average gross margin and farm profit on non-HIV farms were higher than on HIV farms. The average gross margins for the two farm groups are statistically different at 1 percent level. The significant variables that affect output levels on HIV farms are farm size, hired labour and fertilizer. On non-HIV farms, output levels are affected by farm size, family labour and fertilizer. The technical efficiencies for the two farm groups are statistically different at 1 percent level. Generally, non-HIV farms are more technically efficient with a mean of 0.70 as compared with 0.52 on HIV farms. Increase in the years of schooling reduces the technical inefficiencies of farms in both groups.