Profitability of Small-Scale Maize Production in Nigeria: A Case Study of Bichi Local Government, Kano State-Nigeria

Abstract

This paper examined the profitability of small-scale maize production in the Bichi community using the multistage sampling procedure. Gross margin, OLS Multiple regression analysis, and Descriptive statistics were employed as analytical tools. A higher percentage of males (90%) as against females (10%) were revealed from the analytical results. The household size of the majority (70%) was less than 11 persons per family among family households (60%). A total of ₦395,355/ha was earned as gross income whilst the gross margin of ₦201,331/ha was estimated. Total variable cost and Total fixed cost estimated were ₦194,024/ha and ₦36,413/ha respectively. With an R-square of 0.807, six explanatory variables positively explained the response variables according to the double log function. Farm size and labor had positive coefficients of 0.479 and 0.352 respectively which were significant at 1% and 5% level of significance respectively. Inadequate resources, pests and diseases, high labor costs, transport, insufficient storage facilities, and insufficient government support were problems affecting small maize producers in the study area.