Analyzing Small-Scale Wheat (Triticum aestivum Linn._) Production Cost and Returns in Out-Grower Scheme in Thomas Irrigation Area of Makoda Local Government, Kano State, Nigeria
Abstract
The study analyses small-scale wheat (Triticum aestivum Linn.) production cost and returns on out-grower scheme in Thomas irrigation area of Makoda Local Government of Kano state, Nigeria. The study employed multistage sampling technique in the selection of 120 sample respondents. The respondents were interviewed using structured questionnaire. The result obtained was analyzed by means of descriptive statistics and farm budget model. It reveal that farm size (X5) p<-3.543*** was statistically significant but negative in wheat production by small scale farmers, sources of information (X4) p<2.024**, farming experience (X6 p< 0.046 0.036**) and educational level (X7) 0.40 (p<) 0.010 were also significant (1.758*). The result indicated the variable costs of N392,975.26) reflecting 79.80% of the total cost production cost was realised. Among the variable costs, input fertilizers cost constituted highest with N185,767.65(37.73%), seed costs (N38,108.89)7.74%, and irrigation depends on the method used for watering. Fixed costs of production were found to be ₦ 99,451.85 representing (20.19%) per acre. The analysis of the costs and returns reveals that the farmers had a benefit-cost ratio of 7.03 realising ₦7.01 as revenue for every ₦1 invested by farmer in wheat crop production during the 2022/2023 irrigation season. Problems identified included at harvest and post-harvest activities up to (24%) of the farm proportion, pest and diseases. The study recommends ensuring timely and adequate provision of inputs by the government and non-governmental entities and groups, provisions of affordable credit to farmers is paramount, extension services should be adequately and funded, government and private sector should make investments in agricultural research and education as a state priority.
