Profitability analysis of cowpea production in rural areas of Zaria local government area of Kaduna state, Nigeria

Abstract

The study examined profitability of cowpea production in Zaria local government of Kaduna state. The primary data for the study were obtained using structured questionnaire administered randomly to 95 sampled farmers in the study area. Descriptive statistics such as frequencies and percentages and inferential statistics such as Farm budgeting model and multiple regressions were used to analyze the data. The results also showed that the estimated average variable cost, fixed cost, gross margin, net farm income and returns on naira invested were N 27,000.84, N5, 351.29, N60, 339.42, N27, 987.29 and 2.2 respectively. The result of the semi-log functional form best fit the data sets which revealed that the value of coefficient of determinant (R2) as 0.8136. All the variables included in the regression model were statistically significant at various degrees of probability. The significant explanatory variables includes, Farm size (X1), family labour (X2), hired labour (X3), quantities of seed (X4), fertilizer (X5), agrochemicals (X6) and capital inputs (X7) . The Farmers major constraints were pest and diseases, drought, lack of credit facilities. It is therefore recommended that farmers should be provided with farm inputs especially credit facilities, improved seed varieties and agrochemicals. Based on these findings, it can be concluded that, the area has a great potential to increase cowpea production and farmers income. Efforts should be made to encourage farmers to form cooperatives so that they can pool their resources together to increase their scale of operation