Profitability And Resource Use Efficiency In Dry Season Onion Production In Sokoto And Kebbi States, Nigeria

Abstract

The study evaluated profitability and resource use efficiency in dry season onion production in Sokoto and Kebbi States. Eight local government areas (L. G. As), four from each State, were purposively selected for the study. From each L.G.A., four villages were selected and from each village, five dry season onion farmers were randomly selected to arrive at a sample size of 160 respondents. Data were collected fortnightly throughout the production period, using a structured questionnaire. Data generated were analyzed using farm budget and production function models. Results of the farm budget analysis revealed average net farm incomes of N126,774.10 and N237,862.76 per hectare for farmers in Sokoto and Kebbi States, respectively. The results further revealed average rates of returns on investment of 91.89% and 197.92% for the respective States. The production function analysis showed that farm size and seed were under-utilized in Sokoto State, while labour, fixed capital, water and nitrogen fertilizer were over-utilized. In Kebbi State, farm size, labour and irrigation water were under-utilized as against fixed capital, seed and nitrogen fertilizer, which were over-utilized. It was therefore, concluded that inefficient factor allocation prevailed in onion production in the area, notwithstanding the high rates of returns to investment. To ensure efficient utilization of resources and increase farmers' income, greater extension efforts are needed to advise the farmers on the appropriate rates of inputs use.

> International Journal of Agriculture and Rural Development Vol. 9 2007: pp. 35-39