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Profit Efficiency of Sorghum (Sorghum bicolour (L.) Moench) Production among Smallholder Farmers in Southern Agricultural Zone of Nasarawa State, Nigeria
Abstract
The research examines the profit efficiency of sorghum production among smallholder farmers in the Southern Agricultural Zone of Nasarawa State, Nigeria. Utilizing a multi-stage sampling method, 200 sorghum growers were selected as sample size for the study. Data were analyzed using Descriptive Statistics, Gross Margin and Stochastic Profit Frontier Function. Results show average sorghum farmers in the research area had 1.0 ha of farmland under cultivation; production of sorghum was profitable at ₦85,006.63/ha/annum; the return on investment for sorghum production was ₦1.54k; the average Profit efficiency was 0.55; while potential profit in the study area was ₦123,259.24/ha/annum. The findings reveal that the profit lost due to inefficiency was statistically significant at ₦38,252.87/ha/annum the coefficients of seed price, 0.329(P<0.05) and farm size, 0.807(P<0.05) were major factors influencing the quantum of profit efficiency, while the determinants of profit inefficiency were household size (with coefficient 1.040, P<0.05) and access to credit (with coefficient -1.428 P<0.05). Constraints to sorghum production were inadequate credit facility, insecurity, insufficient improved seed, and inadequate extension visits. Therefore, for greater profit margins and improved production efficiency, sorghum growers should endeavour to adopt improved seeds and have easy access to credit facilities. Farmers' extension contact should be increased and extension services should be packaged to include training on optimal utilization of production inputs and prices. The security architecture in the area should be enhanced to guarantee unhindered and safe access to farmlands.
