Efficiency of Resource-Use and Marginal Value Productivity Analysis Among Maize Farmers, Abuja, Nigeria

Year 2022, Volume: 6 Issue: 2, 28 - 33, 31.12.2022

Olugbenga Alabı , Godbless Friday Safugha

Abstract

The study examined efficiency of resource-use and marginal value productivity analysis among maize farmers, Abuja, Nigeria. Specifically, the objectives were: determine the socio-economic characteristics of maize farmers, analyze costs and returns of maize production, determine the marginal value productivity among maize farmers, evaluate resource-use efficiency of maize production, and determine the constraints faced by maize farmers militating against maize production in the study area, Multi-stage sampling technique was used to select one hundred (100) maize farmers. Primary data were used. Data were collected through the use of well-designed and well-structured questionnaire. The analytical tools used were descriptive statistics, farm budgeting technique, financial analysis, Cobb-Douglas production function model, marginal value productivity index, resource-use efficiency index, and principal component analysis. The results show that 65% of maize farmers are less than 50 years of age. The mean age of maize farmers was 47 years. The maize farmers are energetic, active, resourceful in their youthful age. Maize farmers are smallholder, peasant, poor farmers with average of 4.75 hectares of farm land. Maize farmers had on the average of 8 people per household. Maize production is a profitable enterprise with gross margin and net farm income of 776,100 Naira and 758,700 Naira per hectare of farm land respectively. The gross margin ratio of 0.64 implies that for every naira invested in maize production by smallholder maize farmers, 64 kobo covered interest, profits, expenses, taxes and depreciation. Age (X_1 ), and fertilizer input 〖(X〗_4) are statistically significant factors influencing output of maize production at (P<0.01), while farm size 〖(X〗_2), labour input (X_3 ), seed input 〖(X〗_5) and chemical input 〖(X〗_6) are statistically significant factors influencing output of maize production at (P<0.05).The coefficient of multiple determinations (R^2) was 0.789. This implies that the explanatory variables included in the Cobb-Douglas production regression model explained 78.9% of variations in output of maize produced. The resource-use efficiency index [r],which is a ratio between marginal value productivity of resource input and marginal factor cost, the factor price shows that land input, seed input, fertilizer input, labour input and chemical input were underutilized. The retained constraints in the principal component analysis militating against maize production were: lack of fertilizers, poor road infrastructures, lack of improved seeds, lack of credit facilities, lack of extension services and poor storage facilities. The study recommends adequate supply of farm inputs like improved seeds, fertilizers, chemicals such as insecticides and pesticides. Provision of affordable loan or credit facilities, provide good roads linking maize producing areas and extension services who will organize workshops, seminars and training of maize farmers on research findings and efficient use of farm resources.

Keywords

Efficiency of Resource-Use, Marginal Productivity Index, Maize Production, Nigeria.

Supporting Institution

NIL

Project Number

NIL

Thanks

NIL

References

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