Analysis of Cost and Returns involved in Maize Production among Farmers in North West, Nigeria

Abstract

This study analyzed cost and returns involved in maize production among Farmers in North West, Nigeria. Primary data were utilized based on a well-organized questionnaire. The questionnaires were administered to 200 maize producers. The data were analyzed using descriptive statistics, farm budgetary techniques, and Cobb-Douglas regression model. The result shows that approximate 82% of maize producers were male. The mean age of maize producers was 48 years. They are smallholder farmers with an average farm size of 1.12 hectares. The producers had an average of 13 years in maize farming. They are literate, can read and write with an average of 11 years of attending school education. The total variable cost (TVC) and total fixed cost (TFC) was calculated at 200.8 US Dollars and 43.75 US Dollars per hectare, they recorded 82.11% and 17.89% of total cost (TC), respectively. The gross margin (GM) and net farm income (NFI) was estimated at 830.08 US Dollars and 786.32 US Dollars per hectare, respectively. The rate of return on investment (RORI) or return per US Dollar invested in maize farming was calculated at 3.22. This implies that for every one US Dollar invested into maize farming, approximately 3.22 US Dollars are made as revenue, that is approximately 2.22 US Dollars was realized as profit. The significant factors influencing output of maize among producers were labour, farm size, seeds, agrochemicals, and fertilizers. The study concluded that maize farming is profitable in the area. The study recommends access to improved seeds, fertilizers, agrochemicals, and machines for mechanized farming to increase productivity. The machines and technologies will reduce drudgery and the cost incurred in maize farming.

Keywords

• Socio-Economic Features
• Farm Budgetary Techniques
• Cobb-Douglas Regression Model
• Financial Analysis
• Depreciation of Assets

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