Economics of Groundnut Production in Dambatta Local Government Area of Kano State, Nigeria

This study analyzed the economics of groundnut production in Dambatta Local Government Area of Kano state, Nigeria. Multi-stage sampling technique was adopted. Primary data were collected using structured questionnaires. Descriptive and inferential statistics were used to analyze the data collected. The results of the study revealed that the socioeconomic factors of the respondents significantly affected groundnut production in the study area. The gross margin and net farm income were estimated as ₦59,850/ha and ₦47,350/ha respectively. The estimated benefit cost ratio was 1.75. A gross ratio of 0.57 was recorded (a ratio of ˂1 is desirable). The estimates of operating and the fixed ratios were 0.46 and 0.11respectively. The estimate of return on investment was 0.75. The coefficient of multiple determinations (R2) was 0.763 implying that 76% of the variation in the output of groundnut was accounted for by the variables in the regression model. The estimate of elasticity of production is 0.675, suggesting decreasing returns to scale. Also, the constraints of production identified significantly affected groundnut production. Cooperative formation, supportive farm policies, extension delivery services, credit access, efficient supply of subsidized production inputs, processing and storage facilities and technologies to the farmers are strongly recommended.