(A Peer Review Journal)
e–ISSN: 2408–5162; p–ISSN: 2048–5170


Pages: 313-316
S. U. Biye, H. Lawal and A. A. U. Jongur

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.


Adeyemo R, Oke JTO Akinola AA 2010. Economic Efficiency of Small Scale Farmers in Ogun State, Nigeria.”Tropicultura, 28(2): 34–41. Ahmed S, Rafay A, Singh RK & Verma UK 2000. Response of groundnut varieties to spacing. Indian J. Agron., 31(3):248-251. Alabi OF, Owonibi B, Olafemi SO & Olagunju S 2013. Production analysis of groundnut in BirninGwari Local Government Area of Kaduna State. Produ. Agriculture &Techn., 9(2): 102-113. Online copy available at www.patnsukjournal.net/currentissu. Awoke MU 2003. Production analysis of groundnut (Arachishypogaea) in Ezeagu Local Government Area of Enugu State, Nigeria. Global J. Agric. Sci., 2(1):40. Baba MD, Dabai JS, SenchiandDB Umar A 2013. Cost and returns of groundnut productioninZuru Local Government Area of Kebbi State, Nigeria.Advances in Agric. Sci.&Engr. Res., 3(11): 63-75. Battese GE &Coelli TJ 1995. A model for technical inefficiency effects in stochasticfrontier production function for Panel Data. Empirical Economics,20: 325 - 332. Bauchi State Online: Geographical Position. www.ng.all.biz/regions. accessed on 5th October, 2015 Biye SU 2016. Analysis of production efficiency and profitability among groundnut (Arachis hypogeal L.) farmers in BauchiState, Nigeria. Unpublished PhD Thesis,Department of Agricultural Economics & Extension, School of Agriculture and Agricultural Technology, ModibboAdama University of Technology, Yola, AdamawaState, Nigeria, p. 140. Ebong VO, Okoro US &Effiong EO 2009. Determinants of technical efficiency of urban farming inUyo Metropolis of AkwaIbom State, Nigeria. J. Agric. & Social Sci.,5: 89–92. Ekunwe PA, OrewaSI SI SI SI SI SI SI SI SI &Emokaro CA 2008. Resource Use Efficiency in Yam Production in Delta and Kogi States of Nigeria.Asian J. Agric. Res.,2(2): 187-201. Fasoranti MM 2006. A Stochastic Frontier Analysis of Effectiveness of Cassava-Based Cropping Systems in Ondo State, Nigeria. Ph.D. Thesis, Department of Agricultural Economics and Extension, FUTA, Akure. Frischmuth C 1999. Gender is not a Sensitive Issue: Institutionalising a Gender-Oriented Participatory Approach in Savionga, Zambia. Gatekeeper Series No. 72. International Institute for Environment and Development (IIED). Sustainable Agriculture and Rural Livelihoods programme. Idiong IC, AgomDI, EffiongEO &Ohen SB 2009. “Analysis of Technical and Economic Efficiencies in Rice Production Systems in the Niger Delta Region of Nigeria.”InSustaining Agricultural Growth to Meet National Economic DevelopmentGoal. Proceedings of the 23rd Annual Conference of the Farm Management Association of Nigeria (FAMAN), 185-220. Jongur AAU 2006. An Economic Analysis of Masakwa Sorghum Production in Yola South Local Government Area of Adamawa State, Nigeria. Unpublished Doctoral Dissertation,Ahmadu Bello University, Zaria, Nigeria. NPC 2006. National Population Commission of Nigeria (web). www.citypopulation.deaccessed on 1st January, 2015. Otitoju M &Arene CJ 2010. Constraints and determinants of technical efficiency in medium-scale soybean production in Benue State, Nigeria. Afri. J.Agric. Res.,5(17): 2276–2280. Taru VB, KyagyaIZ, Mshelia SI &Adebayo EF 2008. Economic Efficiency of Resource Use in Groundnut Production in Adamawa State of Nigeria. World J.Agric. Sci.,4(S): 896-900. Tashikalma AK 2012. Comparative Efficiency and Profitability Analysis of Some Selected Rainfed and Irrigated Food Crops in Adamawa State, Nigeria. Unpublished Doctoral Dissertation,Department of Agricultural Economics Extension, AbubakarTafawaBalewa University, Bauchi, Nigeria, p. 118.