<![CDATA[Oil palm productivity on smallholder farms remains low despite several interventions to transform agriculture, especially in developing countries. Farmers in rural areas face serious constraints that limit their oil palm production capacity. Smallholders have unprofitable access to markets which in turn makes their business less profitable. Therefore, this study analyzes oil palm productivity of smallholders in Seberida Village. A random sample of 50 oil palm smallholders was selected. The normalized translog productivity function was then calculated through one-step estimation of technical efficiency and its determinants using STATA software. The results showed that fertilizer cost and land area were positive factors that drove profits. Complementarity between resources was a very important determinant of profits. The study concluded that land area and farmers’ resources had a positive effect on oil palm production. Farming profits increased with the increase in land area. Therefore, this study recommends that policies that support commercialization of smallholders will increase agricultural profits.]]>
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