Main Article Content
This study assessed cost and returns analysis of groundnut production in Qua’an Pan Local Government Area of Plateau State, Nigeria. The specific objectives were to determine the socio economic characteristics of groundnut producers in the study area, estimate the cost and returns of groundnut production, determine the input and output relationship in groundnut production and identify the constraints faced by groundnut farmers in the study area. Multistage sampling technique was used in selecting 150 respondents for the study. Primary data were collected through the use of structured questionnaires and interview technique and were subjected to both descriptive and inferential statistics. The results obtained from the study revealed that the mean age of the respondents was 38 years with males dominating (82%) the groundnut production enterprise in the study area. Greater (85%) percentages of respondents were married with majority (64%) of them having primary school education. The respondents had an average household size of nine (9) persons, a mean farming experience of 9.3 years and an average farm size of 3.0 hectares. The result also revealed that majority (72%) of the respondents did not belong to any cooperative/ farming association. The result indicates that majority (79%) of the groundnut farmers acquired their farmland by inheritance. Groundnut production in the study area is profitable. The average output obtained per hectare was 696 kg at the prevailing selling price of ₦280/kg. The total revenue (TR), gross margin (GM) and, net farm income (NFI) per hectare obtained were ₦194880, ₦139380 and ₦123730 respectively. The return on naira invested (RNI) by farmers in the study area was ₦1.70 indicating that for every one naira invested, ₦1.70 profit was gained. The result of the double log production function analysis shows that farm size, cost of fertilizer and cost of labour were statistically significant and influenced the profitability of groundnut production. Major constraints to groundnut production in the study area include; high cost of inputs (64 %), high cost of labour (49 %), lack of organized market system (47%), land tenure (42%) among others. The study recommends that groundnut stakeholders and research institutes should work more on introducing new improved groundnut varieties. Government should subsidize groundnut inputs like recommended fertilizer and herbicides so as to motivate farmers to grow groundnut. Government should establish organized marketing systems where farmers will have proper and reliable linkages with buyers thereby reducing the undue exploitative tendencies of the middlemen. Improved storage facilities should be provided so that farmers could store their produce to avoid spoilage and for sale during times of scarcity.
Annual report of international crop research institute for the semi-arid tropics. A farmer’s guide to profitable groundnut production in Nigeria; 2015.
Taru VB, Kyagya IZ, Mshelia SI, Adebayo EF. Economic efficiency of resource use in groundnut production in Adamawa State of Nigeria. World Journal of Agricultural Sciences. 2008;4(8):896-900.
Girei AA, Dauna Y, Dire B. An economic analysis of groundnut (Arachis hypogea) production in hong local government area of Adamawa State, Nigeria. Journal of Agricultural and Crop Research. 2013;1(6): 84-89.
FAOSTAT. A database of the Food and Agriculture Organization of the United Nations (FAO); 2015.
Taru VB, Kyagya IZ, Mshelia SI. Profitability of groundnut production in michika local government area of Adamawa State. Nigerian Journal of Agricultural Science. 2010;1:25-29.
Alabi OF, Owonibi B, Olafemi SO, Olagunju S. Production analysis of groundnut in Birni Gwari local government area of Kaduna State, Nijeria. PAT. 2013; 9(2):102–113.
Food and Agriculture Organization-FAO. Report-FAOSTAT Production Year Book; 2011.
Olorunju PE, Alabi O, Tanimu B. Priorities and strategies for groundnut research in Nigeria. Paper presented at the national workshop on groundnut rehabilitation in Nigeria. Kano. 1999;15.
Young C. Peanut oil barleys in industrial oil and fat product. 1996;2:337-392.
Hul YH. Peanut oil. Barley industrial oil and fat products.1996;2:337-392.
Mukhtar AA. Performance of three groundnut (Arachis hypogaea L.) varieties as affected by basin size and plant population at Kadawa. Ph.D. Dissertation submitted to Postgraduate school, Ahmadu Bello University, Nigeria; 2009.
Ani DP, Umeh JC, Weye EA. Profitability and economic efficiency of groundnut production in Benue state, Nigeria. African Journals of Food, Agriculture, Nutrition and Development. 2013;13(4): 8091-8105.
Audu SI, Girei AA, Onuk EG, Onyenye PO. Productivity and profitability of groundnut production (Arachis hypogea L.) in Lafia local government area, Nasarawa State, Nigeria. Asian Research Journal of Agriculture. 2017;4(3):1-11.
Cassella Ltd, London. An affiliate of Macmillan publishing Co. Inc New York.
ICRISAT. International crop research institute for the semi-arid tropics. Agribusiness and innovation systems in Africa. 2001;93.
Plateau State Information and Communication Development Agency; 2016.
Aboki E, Bashir MB, Nakwe SHG, Ndaghu AA, Abdulazeez AW. Resource use efficiency in groundnut production in gassol local government area of Taraba State, Nigeria. IOSR Journal of Agriculture and Veterinary Science (IOSR-JAVS) 2018;11(3):51-56.
Olorunsanya EO. Gender of household heads and relative poverty among rural farming households in Kwara state, Nigeria. Ethiopian Journal of Environmen-tal studies and Management. 2009;7(4): 423-433.
Nmadu JN, Peter J. Small scale farmers’ willingness to take agricultural insurance in Paikoro local government area of Niger State. In: Nmadu JN, Baba KM, Likita T, Ojo MA, Yisa ES, Ibrahim FD. (eds). Commercial agriculture, banking reforms and economic down-turn: Setting a new agenda for agricultural development in Nigeria. Proceedings of the 11th National Conference of the Nigerian Association of Agricultural Economists held at New Lecture Theatre, School of Agriculture and Agricultural Technology, Federal University of Technology, Minna, Nigeria between 30th November, 2010 and 3rd December; 2010.
Vihi SK, Jesse B, Dalla AA, Sadiku Y. Analysis of farm risk and coping strategies among maize farmers in Lere local government area of Kaduna State, Nigeria. Asian Journal of Research in Agriculture and Forestry. Article no.AJRAF.43304. 2018; 1(3):1-10.
Haruna L, Ahmed MA. Economics of groundnut production among smallholder farmers in Michika local government area of Adamawa State, Nigeria. International Journal of Environment, Agriculture and Biotechnology (IJEAB). 2018;3(2).