Economics of Groundnut Production in Dambatta Local Government Area of Kano State, Nigeria
- September 23, 2020
- Posted by: RSIS Team
- Categories: Economics, IJRISS
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue IX, September 2020 | ISSN 2454–6186
Economics of Groundnut Production in Dambatta Local Government Area of Kano State, Nigeria
Godfrey Onuwa1*, Ibiyinka Ademiluyi1, Grace Yitnoe2
1Department of Agricultural Extension and Management, Federal College of Forestry, Jos, Plateau State, Nigeria
2 Entrepreneurship and Consultancy Unit, Federal College of Forestry, Jos, Plateau state, Nigeria
*Corresponding author
Abstract: This study analyzed the economics of groundnut production in Dambatta Local Government Area of Kano state, Nigeria. Multi-stage sampling technique was adopted. Primary data were collected using structured questionnaires. Descriptive and inferential statistics were used to analyze the data collected. The results of the study revealed that the socioeconomic factors of the respondents significantly affected groundnut production in the study area. The gross margin and net farm income were estimated as ₦59,850/ha and ₦47,350/ha respectively. The estimated benefit cost ratio was 1.75. A gross ratio of 0.57 was recorded (a ratio of ˂1 is desirable). The estimates of operating and the fixed ratios were 0.46 and 0.11respectively. The estimate of return on investment was 0.75. The coefficient of multiple determinations (R2) was 0.763 implying that 76% of the variation in the output of groundnut was accounted for by the variables in the regression model. The estimate of elasticity of production is 0.675, suggesting decreasing returns to scale. Also, the constraints of production identified significantly affected groundnut production. Cooperative formation, supportive farm policies, extension delivery services, credit access, efficient supply of subsidized production inputs, processing and storage facilities and technologies to the farmers are strongly recommended.
Keywords: Farm budget analysis, groundnut yield, input-output relationships, production constraints, socioeconomic factors
