AN ECONOMIC ANALYSIS OF SMALL SCALE MIXED FARMING SYSTEM: THE CASE OF FARM CROP/LIVESTOCK ENTERPRISES IN GIWA DISTRICT OF KADUNA STATE
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Author
Presented To
Department of Agricultural Science
ABSTRACT
The main objectives of the study are to derive optimum farm plans for the small scale mixed crop/ livestock farmer and to examine the effect of resource adjustments on total gross margin under the existing technology and resource endowment. The study area is Giwa District of Zaria Local Government area of Kaduna state. The study was carried out during 1986/87 farming season. Data collection was by means of questionnaire to interview the respondents twice a month throughout the year by two well trained enumerators. Three basic farm models were constructed and labelled A, B, and C and their variants are AI, AII, AIII, BI, BII, BIII, CI and CII. Model A represents production activities at existing resources level while its variants represented adjustments in land and cattle resources. Model B represents production, consumption and selling activities, while its variants indicate adjustments in land and labour resources. Model C differs only from model B by incorporating crop residue and animal manure variables into the model. Models CI and CII indicate adjustments in both land and labour resources. The analysis of the optimum farm plans for all the models showed substantial increase in total gross margins over the farm income of N3000 estimated during the survey. An increase in farm size by 40 percent results in 18 percent increase in total gross margin, while an increase in labour by 15 percent reduced the total gross margin by 3.5 percent in models BII and BI respectively, showing the importance of land in the study area. This trend was typical for all the models. Maize/cowpea, guinea corn/millet and cattle production activities were in better competitive positions over other activities. This shows how important these activities are in the study area. The results show that higher productivity and more revenue could be achieved by the small scale mixed farmer if there is a reorganisation of resources and better planning of farming activities. Cattle was a major revenue earner because any model without cattle activity showed a reduced revenue in the optimum plan. Labour was limiting at the peak farming period as labour has to be rationed between crops and livestock activities. Selective mechanisation with the use of work animals is suggested as a solution to the labour bottleneck. An examination of the shadow prices of the excluded activities which show the income penalities attached to forcing one unit of the excluded activities into the programme, further reveals the stability of the different production strategies under existing technology and changing resource levels. The higher the shadow prices of the excluded activities the lower is their competitive position within the optimal programme. Studies such as this are recommended in other states where agro-pastoral Fulani are settled so that a national policy could be evolved for the mixed farming production strategy in Nigeria.
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