Analysis of profitability and resource use-efficiency in maize production among resource poor farm households in selected Local Government Areas of Kwara State, Nigeria

Abstract

Maize production in Nigeria is faced with high cost of inputs which hampers productivity and profitability. This study examined the profitability and resource-use efficiency in maize production in selected local government areas of Kwara State, Nigeria using 180 representative maize farming households. Descriptive statistics, budgetary analysis, multiple regression and efficiency ratios were the analytical tools. The average yield per hectare in the study area was 1.77 tonnes with average net farm income per hectare of N37,140. The return on capital employed also shows that maize farming enterprise was profitable in the study area with return on capital employed of 0.74 indicating a return of 74kobo per every naira invested. The production function estimate shows that land, labour and quantity of maize seed used were significantly important in explaining the variation in maize output in the study area. The efficiency ratio analysis however shows that these resources were underutilised. The study therefore recommends increase in the use of these inputs for optimal level of resource use to be attained.