Abstract
This study analyzed the profitability and determinants of groundnut production in Dambatta Local Government Area of Kano state. Multi-stage sampling technique was used in collecting data from eighty (80) respondents in the study area. The data generated were analyzed using descriptive statistics, farm budgeting model and regression analysis. The results revealed that the gross margin and net farm income of the farmers were N71400/ha and N59400/ha respectively. Also, the fixed and operating ratios were estimated at 0.1 and 0.41 respectively, while the benefit- cost ratio was N1.98. The coefficient of multiple determination (R2) was 0.739, implying that about 74% of the variation in the output of groundnut was accounted for by the explanatory variable inputs in the regression model. The regression coefficients of Farm size(X1) and Credit(X6) were positive and statistically significant at (p< 0.01), labour (X2) and Agrochemical(X5) were also positive and statistically significant at (p< 0.1), while Fertilizer(X4) was also positive and statistically significant at (p<0.05). The major constraints associated with groundnut production in the study area include; inadequate capital (86%), high cost of production inputs (83%) and lack of access to agricultural credit (78%). The study recommended that if these constraints are adequately tackled the productivity and profitability of the groundnut farmers will significantly improve.
 Onuwa, C. G. | Department of Agricultural Extension and Management, Federal College of Forestry, Jos, Plateau state, Nigeria
Highlights
Groundnut (Arachis hypogea) is the 13th most important food crop of the world (FAO, 2011)
This study examined the economics of groundnut production in Dambatta Local Government Area in Kano State
Despite the various problems faced by groundnut farmers in the study area, groundnut production is profitable with an average total revenue of N120,000/ha, giving a gross margin and net farm income of N71,400/ha and N59,400/ha respectively
Summary
Groundnut (Arachis hypogea) is the 13th most important food crop of the world (FAO, 2011) It is the world 4th most important source of vegetable protein. It is estimated that over 90% of the farm holders in Nigeria are small scale; most of these farmers produce is subsistence basis and face cash insecurity problems. It is in the light of this that many people believe that the production of cash crops such as groundnut is way out at such cash insecurity. It was repented that seed yield in northern Nigeria’s is about 3000kg/ha developing countries account for 92% and 96% of global output and production area respectively (FAO 2011)
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