Profit and Technical Efficiency Estimation of Onion Farms in Aliero Local Government Area of Kebbi State, Nigeria

Abstract

The study investigated profitability and technical efficiency of irrigated onion production in Aliero Local Government Area of Kebbi State, Nigeria. The primary data used for the study were developed using a structured questionnaire administered to 120 randomly selected onion farmers. Descriptive statistics, farm budgeting (gross margin, net farm income, gross ratio, operation ratio, return on investment) and Cobb-Douglas stochastic frontier production function model were employed in analyzing the data. The result indicated that estimated gross margin; net farm income; gross ratio; operating ratio; and return on capital investment gives estimated values of ₦ 427,578.82 per hectare, ₦ 409,642.25 per hectare, 0.24, 0.21 and 3.46, respectively. The mean efficiency obtained was 83.6% indicating that there was a 16.4% opportunity for improving efficiency. The result also showed that farmers’ educational level, years of farming experience and access to extension service significantly influenced the farmers’ efficiency positively. It is recommended that relevant policies that would enhance the technical skill of the farmers and access to extension services should be developed by the stakeholders.