Gross Margin Analysis and Resource Use Efficiency in Sesame Production among Small- Scale Farmers in Benue State, Nigeria

Abstract

The study was an analysis of gross margin and resource use efficiency in Sesame production among small-scale farmers in Benue State, Nigeria during the 2013/2014 farming season. The primary data used for the investigation were obtained using an interview schedule and purposively collected from 200 respondents. Descriptive statistics, gross margin analysis, t-test and stochastic production frontier were used for the data analysis. The mean gross margin per hectare was N168,808.52, the mean total revenue was N317,500.00 and the mean total variable cost was N148,691.48 while labour cost was the highest cost incurred by the respondents. The mean outputs obtained by the respondents were 2280.0 kilogrammes. The technical efficiency index estimated for sesame farmers was 0.55 which indicated inefficiency in current production practices. The efficiency indices for allocative and overall economic efficiencies were estimated to be 0.37 and 0.25 respectively. Farm size, seed and hired labour significant influenced technical efficiency (p<0.01). The socio- economic factors associated with higher technical efficiency of the farmers included age, access to credit and fertilizer use (p<0.10); frequency of extension visit (p<0.10). The study concluded that high level of inefficiency exists under the present production practices and therefore recommended that extension workers and other relevant organizations should provide training for farmers on the best way of combining the various inputs used in sesame production and resources such as fertilizer, tractor services and credit should be made available to farmers for improved sesame productivity and increased foreign earnings.