COMPARATIVE ECONOMIC ANALYSIS OF DROUGHT AND NON DROUGHT TOLERANT MAIZE PRODUCTION IN GOMBE STATE
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Department of Agricultural Science
ABSTRACT
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This study compares economics of Maize production with DTMA and NDTM Maize variety. The study used farm level data to estimate Profitability, efficiency, yield gap, varietal gap, determinants of profitability and constraints to maize production in seven local government of Gombe state. A multistage sampling technique was used to collect cross-sectional data from three hundred and seventy (370) farmers, separated into 188 drought tolerant maize farmers and 182 non drought tolerant farmers, during 2014 cropping season. Farm budget analysis model was used to estimate profitability. Single stage maximum likelihood estimation method, translog stochastic frontier was used for efficiency estimates. The estimated stochastic frontier result was used to compare farmer’s efficiency based on variety and location of production through metafrontier approach. The result showed that, 37% of DTMA and 32% of NDTM were within the ages of 40 - 49 years. There were no significant variations in aggregate quantity of inputs used. However, variability exists in output and yield of the two varieties. The average yield for drought tolerant maize farmers was 2.602mt per hectare whereas 1.55861mt per hectare for NDTM. The DTMA farmers spent about N45, 000 per hectare whereas for NDTM about N30,000 per hectare. Effect of variety on profitability of maize was significant at 1%. The Gross margin was N73, 416.74 per hectare for DTMA while N18, 862.61 per hectare for NDTM. Variation in profitability was 67.3% for DTMA and 59% NDTM jointly cause by variation on independent variables included in the model, like age, education, household size, land ownership, and many others. A significant relationship exists between maize variety produced and the farmer’s efficiency level. Mean technical efficiency using SFA was 0.843 for DTMA, 0.628 for NDTM. Whereas under metafrontier efficiency, technical efficiency changes to 0.616 for DTMA and 0.535 for NDTM. Variability of efficiency across variety and across location was significant at 1%. Technology gap ratio was found to be 0.959 for DTMA and 0.866 for NDTM. Major constraints identified by the DTMA farmers was higher producer cost associated with low farm gate price, while for NDTM identified low extension contact as their major constraints. The survey established that DTMA farmers use average of 407 (equivalent to 69.2 man-days while 474 man-hours equivalent to 79.8man-days by NDTM of labour per hectare of maize from land clearing to harvest. It was also established that about 38.8% of maize yield was lost because of inefficiency by DTMA and 56.5% for NDTM. The study concluded that maize production was profitable even with lost in expected output resulting from farmer’s inefficiency. Hence the study recommends that farmers producing maize for business should linked with companies like nestle food, for bulk marketing options, or contract farming options through their co-operative societies. Nevertheless, farmers should be informing on the proper use of herbicide through extension bulletin and guide.
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