PROFITABILITY ANALYSIS AND DETERMINANTS OF GROUNDNUT (Arachis hypogea) PRODUCTION IN DAMBATTA LOCAL GOVERNMENT AREA OF KANO STATE, NIGERIA

Abstract

This study analyzed the profitability and determinants of groundnut production in Dambatta Local Government Area of Kano state. Multi-stage sampling technique was used in collecting data from eighty (80) respondents in the study area. The data generated were analyzed using descriptive statistics, farm budgeting model and regression analysis. The results revealed that the gross margin and net farm income of the farmers were N71400/ha and N59400/ha respectively. Also, the fixed and operating ratios were estimated at 0.1 and 0.41 respectively, while the benefit- cost ratio was N1.98. The coefficient of multiple determination (R²) was 0.739, implying that about 74% of the variation in the output of groundnut was accounted for by the explanatory variable inputs in the regression model. The regression coefficients of Farm size(X₁) and Credit(X₆) were positive and statistically significant at (p< 0.01), labour (X₂) and Agrochemical(X₅) were also positive and statistically significant at (p< 0.1), while Fertilizer(X₄) was also positive and statistically significant at (p<0.05). The major constraints associated with groundnut production in the study area include; inadequate capital (86%), high cost of production inputs (83%) and lack of access to agricultural credit (78%). The study recommended that if these constraints are adequately tackled the productivity and profitability of the groundnut farmers will significantly improve.

Onuwa, C. G. | Department of Agricultural Extension and Management, Federal College of Forestry, Jos, Plateau state, Nigeria