EFFICIENT RESOURCE ALLOCATION PATTERNS FOR CASSAVA BASED FOOD CROP FARMERS IN ABIA STATE, NIGERIA: AN APPLICATION OF LP AND T- MOTAD MODELS

Abstract

The study developed efficient cassava-based enterprise patterns for smallholder farmers in Abia State. Multi-stage sampling procedure was used to select 120 smallholder cassava-based farmers. A structured questionnaire was used to obtain cross-sectional data from the farmers. Data were analyzed using descriptive statistics, farm budgeting technique, Linear Programming and Target Minimization of Total Absolute Deviation (T-MOTAD) models. The LP result prescribed 0.69ha, 0.63ha, 0.62ha, 0.54ha, 0.58ha and 0.56ha for CY, CP, COk, CMzMe, CYOkP and CMzYP respectively for the smallholder famers. A set of feasible risk efficient farm plans I, II and III were obtained with the T-MOTAD model. Plan I also prescribed 0.69ha, 0.63ha, 0.62ha, 0.54ha, 0.58ha and 0.56ha for CY, CP, COk, CMzMe, CYOkP and MzYP enterprises respectively. 0.59ha for CY, 0.6ha for CP, 0.63ha for COk, 0.58ha for CMzMe, 0.52ha for CYOkP and 0.65ha for MzYP were prescribed in risk efficient plan II; and in risk efficient plan III, 0.40ha, 0.47ha, 0.45ha, 0.43ha, 0.60ha, 0.51ha 0.54ha and 0.35ha for CMz, CY, CP, COk, CMzMe, CMzY , CYOkP and MzYP respectively were prescribed for the farmers.. Gross margin increased from ₦170,717.61/ha in the existing plan to ₦215,667.56/ha in optimum plan, and to ₦209,009.57/ha, ₦197,281.27/ha and ₦188,881.96/ha in risk efficient plans I, II and III, respectively. Labour and capital were the major limiting resource across the plans for the enterprises. It was concluded that the cassava farmers had the potential to maximize gross margins per unit enterprise in the optimum and risk efficient farm plans as resources were not optimally allocated in the existing plan. Farmers should therefore adopt the prescribed optimum and risk efficient farm plans.