Technical Efficiency and Profitability among Maize Based Farmer in Kajola Local Government of Oyo State

Abstract

Maize consumption is widespread across the country and among households of different wealth. The challenge to increase the efficiency in food production level in Nigeria appears to be more urgent now than it has ever been in the history of the country and in particular, Kajola Local Government area of Oyo State. This study analyzes the technical efficiency and profitability among maize base farmer in Kajola Local Government of Oyo State. A multi-stage sampling technique was used to select 80 maize based farmers in the five villages using well-structured questionnaire. Descriptive statistics, gross margin and stochastic frontier analysis were employed to analyze the data collected. Result showed that the mean age and household size of the respondents were 46 years and 5 respectively. The profitability analysis showed a profit of ₦2711842.6 was recorded. The stochastic analysis revealed that capital, is the most important factors to increase maize productivity. The study concluded that the productivity of the factors could be improved by expanding the capital base, and adequate and timely education through constant training in the latest farming techniques while alternative capital sources through financial capital (savings, funding, remittances etc.) government grants, be available to farmers in other to boost production.