The Determinants of Agricultural Production and Profitability in Akoko Land, Ondo-State, Nigeria

Abstract

The study considered the determinants of agricultural production and profitability with special reference to maize production in Akoko North East and South West Local Government Areas of Ondo-State. Data collection was through well structured questionnaire administered on 100 respondents selected through random sampling technique. The methods of analysis used were descriptive statistics, gross margin analysis and production function analysis using the Ordinary Least Square (OLS) criterion to estimate the parameters of the production function. Results showed that majority of the farmers were ageing and quite experienced in maize farming. Also there was high level of illiteracy as about 65% of total respondents had no formal education while 25, 6 and 4% had primary, secondary and technical education respectively. Farming was majorly on subsistence level as the mean farm size was 0.39 hectares. Maize farming was profitable in the study area with gross margin and net returns of N2,637.80 and N2,141.00 respectively. Results showed that farm operation was in stage II of the production function with RTS estimated as 0.62 and factors of production were efficiently allocated with elasticities that were positive but less than one. Results further showed that age, education, labour and cost of non-labour inputs were positively related to output while farm size and years of experience carried negative signs. However, only labour input has significant influence on output.