PROFITABILITY AND TECHNICAL EFFICIENCY IN IRRIGATED ONION PRODUCTION UNDER MIDDLE RIMA VALLEY IRRIGATION PROJECT IN GORONYO, SOKOTO STATE NIGERIA

Abstract

The study analyzed profitability and technical efficiency in irrigated onion production under Middle Rima valley irrigation project in Goronyo, Sokoto State Nigeria. The primary data used for the study were obtained using structured questionnaire administered to 90 randomly selected farmers. Descriptive statistics, gross margin, net farm income, gross ratio, operation ratio, return on investment and stochastic frontier production function were used to analyze the data. The result showed that estimated gross margin; net farm income; gross ratio; operating ratio; and return on capital investment gives an estimated values of N367,332.73 per hectare, N347,792.54 per hectare, 0.25,0.21 and 3.58 respectively. The mean efficiency obtained was 94.67 percent indicating that there was a 5.33 percent allowance for improving efficiency. The result also showed that, farmers’ educational level, years of farming experience and access to extension service significantly influenced the farmers’ efficiency positively. It is recommended that relevant policies that would enhance the technical skill of the farmers and access to to extension services should be evolved by the stakeholders