ECONOMICS OF GROUNDNUT PRODUCTION IN TSANYAWA LOCAL GOVERNMENT AREA OF KANO STATE, NIGERIA

Abstract

The study examined the economics of groundnut production in Tsanyawa Local Government Area of Kano State. A combination of purposive and random sampling technique was used to select 150 groundnut farmers. Data were collected using structured questionnaire and analyzed descriptive statistics, gross margin and regression analysis. The results indicated that, the mean age of the farmers was 33 years with a mean household size of eight persons. The farmers cultivated an average of 2.5 hectares. The gross margin was N37, 850 per hectare, with the rate of return on investment of N1.10. The gross, operating and fixed ratios were 0.54, 0.52 and 0.03, respectively. The regression analysis revealed an R² value of 0.97 which implies that 97% percent of the total variation in the gross income of the farmers was explained by the independent variables included in the model. The major constraints encountered in groundnut production in the study area were inadequate capital, inadequate improved seed, pests and diseases. The study concluded that groundnut production in the study area was profitable. Therefore, it was recommended that extension service should be geared towards delivery of improved technologies to groundnut production in the study area. Groundnut farmers should form cooperative societies so as to pool their resource together to solve their common problem and take advantage of economy of scale. There is need for government to subsidize cost of inputs for groundnut producers, such as seeds, fertilizer, pesticides, and herbicides.