ANALYSIS OF PRODUCTION EFFICIENCY AND PROFITABILITY OF MAIZE FARMERS IN GIWA LOCAL GOVERNMENT AREA OF KADUNA STATE, NIGERIA

ANALYSIS OF PRODUCTION EFFICIENCY AND PROFITABILITY OF MAIZE FARMERS IN GIWA LOCAL GOVERNMENT AREA OF KADUNA STATE, NIGERIA

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ABSTRACT

This study investigated the production efficiency and profitability of maize farmers in Kaduna State, Nigeria. The broad objective of this study was to determine the production efficiency levels and profitability of maize farmers in the study area. A multi-stage sampling technique was employed to collect exclusively primary data from 190 maize farmers from seven wards in Giwa LGA of Kaduna State using a well-structured questionnaire. The statistical tools used to conduct the analysis were descriptive statistics, constant and variable return to scale, DEA for both production and cost functions, Tobit regression model and gross marginal method. The descriptive analysis revealed that maize farming was dominated by young and educated male headed households with family responsibilities. Majority were primarily experienced small scale farmers depending on improved variety for the production of the enterprise. Although they were members of farmers’ association, their level of access to credit was as limited as that of their contact with extension agents. The analysis of production efficiency revealed different sources of inefficiency. Farm size was also found to be another important source of inefficiency in maize production as only 26% of the farm households was observed to produce at the optimal scale. Small, medium and large scale farmers had a scale efficiency score of 0.43, 0.88 and 0.63 respectively. In terms of allocative efficiency, 0.58% of the sampled households were found to be allocatively efficient with majority and minority being the medium and small scale farmers respectively. Economically, less than a quarter of the sampled farm households were efficient with the majority being the small scale farmers followed by the large scale farmers. The profitability analysis revealed that maize enterprise is a profitable business. Specifically, by investing N1 per hectare, a return of N 2.27 was realized with no significant difference across the scale efficient and inefficient farmers. Maize production in the study area is not constraints free. It was observed that fertilizer scarcity was the most important challenge in maize production followed by inadequate rainfall and capital as well as price fluctuations. Recommendations for the study include: accessibility of credit to maize farmers through reduction of interest rate and education of farmers in the use of such credit for more and significant impact, extension agents should not only raised their number of visits with maize farmers but equally ensuring that their recommendations are being adopted and properly implemented, and lastly, farmers’ association should review the aim of the


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