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ECONOMIC ANALYSIS OF MAIZE PRODUCTION IN KADUNA STATE, NIGERIA.
ABSTRACT
The objectives of this study were to; described the socio-economic characteristics of maize farmers estimated costs and returns, determine the inputs and output levels and examine the impact of input prices (seed, fertilizer and herbicides) on maize production in Kaduna State. This study utilized data collected from the large farm inputs – output survey conducted in 2000/2001 cropping season by the International Institute for Tropical Agriculture (IITA), Ibadan in collaboration with Kaduna State Agricultural Development Project (KADP). The survey was conducted in 13 local government areas of Kaduna state. The data on prices and output of maize were collected from KADP for a period of 15 years (1990 – 2004). Other sources of secondary data were Premier Seed, Kaduna state Farmers Supply Company (FASCOM), and SARO Agrochemicals. The analytical tools used include descriptive statistics, farm budgeting technique and Multiple Regression Analysis. The result of the socio-economic analysis shows that 44% of the farmers were between the ages of 41 and 50 years, but the average age was 46 years. While 41% had no formal education, 14% of the educated ones was through vocational schools. Average household size was 10 people and only 14% of the farmers belonged to farmers’ cooperative societies. The average level of seed, fertilizer and herbicides used were below the recommended rates, seed was 13kg/ha, fertilizer was 4 bags/ha, while herbicide was 0.15 L/ha. Maize yield was also lower than expected (1.1 ton/ha). The economic analysis showed that Gross Margin per hectare from sole maize crop was N13,943.60. Fertilizer was the most prominent cost item, accounting for 59% of the total cost of production. The results of the regression analysis indicated that out of the three input prices included in the model, the prices of herbicide and viii seeds had an inverse relationship with maize yield while fertilizer price had positive effect. However, only the effects of prices of fertilizer and herbicides were statistically significant at 5% level of probability. All the prices of the specified inputs have negative but insignificant relationship with the maize yield suggesting that inverses and their prices lead to reduction in maize output because farmers would tend to buy less of them. The study concluded that through maize production in the state is profitable, increasing prices of seed input may result in decrease in output. The study recommended that input subsidy, training of farmers, and credit facilities to boost sustainable maize production system in Kaduna State.
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