keywords: Application, approach, gross margin, groundnut, production
The study was carried out to analyse the production profitability among sole groundnut (Arachis hypogea L.) farmers in Bauchi State, Nigeria. The underlying objectives were to; describe the socio-economic characteristics of groundnut farmers, determine the costs and returns associated with groundnut production and identify production constraints associated with groundnut production. Data were collected from 251 farmers via structured interview schedule using multi-stage (purposive and simple random sampling techniques) and were analyzed using; descriptive statistics and Gross Margin analysis. The result shows that majority; of the respondents were male (70.12%) within the ages of 31-50 years and were married (82.87%). About 37% of them attended secondary school, 31.08% had tertiary education and 15.05 % attained primary education, while 12.35% had Quranic education. While only 3.59% were not literate. They earned a total revenue of (₦140,361.09/ha), a gross margin of (₦56,515.30/ha).The profitability index was 0.4 which signifies that for every ₦10 earned, an average farmer will make a profit of ₦4. Return on investment was 67.40% while operating ratio was 0.59. They encountered constraints such as; unfavourable prices, poor road network, high cost of labour, pests and disease, problems of theft, high costs of hybrid seeds and inorganic fertilizers, problems of adulterated seeds and; flooding in some farms. It is recommended that; financial institutions and stakeholders in agriculture sector should ease the farmers’ access to credit so that they can expand production, and also generate more jobs to our teeming unemployed youths.
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