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PROFITABILITY AND EFFICIENCY OF YAM PRODUCTION AMONG SMALL-HOLDER FARMERS IN SELECTED LOCAL GOVERNMENT AREAS OF NIGER STATE, NIGERIA
ABSTRACT
The study examined the profitability and efficiency of yam production among small-holder yam farmers in Munya, Paikoro and Suleja Local Government Areas of Niger State. Primary data were collected from 264 yam farmers selected using simple random sampling technique. The data from 2014 cropping season were collected with the aid of structured questionnaire. Data collected were analyzed using stochastic frontier production function. The maximum likelihood estimate (MLE) of the stochastic frontier model production function revealed that the inputs were under-utilized. The technical efficiency score of each respondent revealed that the most efficient farmer operated at 98% efficiency, the least was found to operate at 68% efficiency level, while the average was 90%, indicating that yam farmers still have the potential to increase the efficiency in their farming activities by 10% in the study area. The predicted allocative efficiencies differ substantially among the farmers ranging between value 0.411 and 0.979 with the mean allocative efficiency of 0.893. The yam farmer with the best and least practice had economic efficiency of 0.952 and 0.325 respectively. The mean economic efficiency was 0.807. The determinants of technical efficiency revealed that age, farm size, farming experience, extension contact and household size affect technical efficiency of the farmers. The variance parameters of the frontier production model were Sigma-squared (δ2) and Gamma (γ) and their estimated coefficients in the study area were 0.0385 and 0.9617 respectively. The return per ₦1 invested was estimated to be ₦1.67. Hence, yam production was profitable in the study area. The major constraints were inadequate access to credit facilities, poor transportation network, pests and diseases, poor storage facility and high cost of labour. The study recommended that farmers should limit the use of agrochemicals while yam sett, fertilizer and labour that significantly affect production should be increase alongside with intensive use of farm size to boost more production.
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