ABSTRACT
The study was conducted to evaluate the profitability and efficiency of SAMPEA-11 variety of cowpea production in Niger State, Nigeria. Specifically, the study described the socioeconomic characteristics of SAMPEA-11 farmers; examined the profitability of SAMPEA-11 production in the study area; estimated the technical, allocative and economic efficiency of SAMPEA-11 production as well as identified the determinants of technical, allocative and economic inefficiency in SAMPEA-11 production. A multi-stage sampling technique was used to select 152 farmers for the study. Data were collected on socioeconomic characteristics, inputs and output quantities as well as their prices. The descriptive statistics were used to describe socioeconomic characteristics as well as inputs and output level of SAMPEA-11 farmers. Gross margin analysis was used to determine the profitability of SAMPEA-11 production. Equally, the estimation of technical, allocative and economic efficiency and their determinants were achieved using stochastic frontier production and cost function. From the results, it was concluded that the enterprise returns on investment is Γ’β¦1.22. This means that for every Γ’β¦1 spent by the farmer on SAMPEA-11 production, Γ’β¦1.22 was realized as profit. Analysis of technical efficiency using stochastic production frontier shows that seed, herbicide and insecticide were significant at 1% level of probability. The elasticity of production (0.7658) was less than 1 indicating a positive decreasing return to scale (DRS) at stage II of the production process where every farmer strives to maximize profit and minimize cost of production. And some socio-economic variables in the model such as age, education, experience and extension were key factors that can increase technical, allocative and economic efficiency in the study area. The farmersΓ’β¬ΕΈ average technical, allocative and economic efficiency is 76%, 64% and 52% respectively which suggest an appreciable use of inputs in productivity. Also, pests, bad roads, insufficient credit, activities of middlemen, and high cost of inputs were major constraints to SAMPEA-11 production. It is recommended that farmers should be encouraged to form viable cooperative societies to enable them access inputs and institutional credit at reasonable costs; increase effort in the development of markets for cowpeas and development of a sustainable value chain; promote intensive collaboration among institutions, governmental extension departments and farmer associations in order to implement SAMPEA-11 farming experiments and best management practices.
