Farm Partial Budget Analysis of Onion (Allium Cepa L.) for the Application of Nitrogen and Spacing in Southern Tigray, Ethiopia

Abstract

This study aimed to assess the economic viability of onion production under varying nitrogen fertilizer rates and intra-row spacing in the study area using partial budget analysis. The experiment employed a factorial arrangement in a randomized complete block design, conducted at Alamata Agricultural Research Center in Kara Adishabo in 2020. Experimental treatments included nitrogen fertilizer rates (0, 23, 46, 69, and 92 Kg N ha-1) and intra-row spacing (5, 10, and 15 cm) with three replications. The partial budget analysis indicated that the treatment combination of 69 kg N ha-1 and 5 cm intra-row spacing yielded the highest net benefit of birr 642602.3. However, based on the marginal rate of return, the recommendation of 46 Kg N ha-1 and 15 cm intra-row spacing, which had a lower net benefit, was rejected after residual analysis. Consequently, the recommended treatment combination is 69 Kg N ha-1 and 5 cm of intra-row spacing, contrary to the previous recommendation. Onion cultivation is a significant economic activity in the southern zone, playing a crucial role in the livelihoods of smallholder farmers. Consequently, understanding the production costs and analyzing the financial profitability of this on-farm business is essential in the study area to enhance crop productivity.