Supply response analysis of millet in Funakaye Local Government Area Of Gombe State, Nigeria: A Profit function approach

Abstract

This study focused on output supply and input elasticities of millet crop in Funakaye LGA, Gombe State, Nigeria. The specific objectives determined millet supply response to prices of input and non-price factors. Primary data were collected through structured questionnaire administered to 300 randomly selected millet farmers. Data were analysed using translog profit function approach. Profit of millet production showed that the coefficient of factor prices of labour, seeds and agrochemicals were found to be negative in the profit function as expected. The own-price elasticity of millet supply is in the elastic region. Cost of fertilizer has the highest elasticity compared to costs of seeds, labour and agrochemicals. Among the fixed inputs, millet supply is least responsive to number of household members participating in millet production and most responsive to farmers level of education. The research concludes that price incentives can be an attractive strategy for expanding millet supply, while emphasis should also be put on support price to all input prices and relevant non-price factors such as education and land reforms. It is hence recommended that policy needs to go beyond price interventions as a means for expanding millet supply, as price and non-price incentives are judicious in influencing smallholder farmers’ production decision and supply. This could be through encouraging better use of resources and its availability as well as the development of rural infrastructure. The Agency for Adult education and extension agents could consider providing basic education training within farming communities.