PROFITABILITY ANALYSIS OF SORGHUM SMALL-SCALE FARMERS IN SELECTED LOCAL GOVERNMENT AREAS OF GOMBE STATE, NIGERIA

Abstract

The study aims at estimating the profitability of small-scale farmers in sorghum production, using the gross margin model of determining profitability in some selected Local Government Areas of Gombe State, Nigeria. Primary data was used for the study. Data were collected with the aid of structured questionnaire administered to 234 sorghum farmers in the study area. The data were analyzed using descriptive statistics and gross margin. The average age of sorghum farmers was found to be 40 years implying that farmers can make positive contribution to agricultural production.  Household size is between 11-15 persons in their family with average of 12 persons. 48 percent of the farmers had no formal education. The total variable cost (TVC) incurred and revenue obtained per hectare for sorghum was estimated to determine the profitability of sorghum production in the study area. The total revenue (TR) was ₦354,946.6 while the total variable cost (TVC) was ₦167,188.6. The gross margin was therefore ₦187,758. The rate of return on investment (return per Naira invested) was ₦2.12 indicating that for every ₦1 invested in sorghum production in study area; a profit of 1.12 kobo was made. The eight major constraints associated with sorghum production ranked in order of importance were cost of fertilizer, inadequate capital, cost of labour, inadequate improved seed, pest and diseases, weed infestation, inadequate extension workers and inadequate storage facilities. The constraints were reported by 80%, 76%, 51%, 46%, 36%, 35%, 30% and 13% of the sorghum farmers, respectively. It was recommended that farmers should be encouraged to join cooperative societies in other to enhance loan accessibility to increase production and to have market linkages to commercialize their output thus increasing the profit level.