Resource Use Efficiency of Groundnut Production in Ringim Local Government Area of Jigawa State,Nigeria

Abstract

The study was conducted to measure the resource use efficiency in groundnut production in Ringim Local Government Area, Jigawa State. A stratified sampling technique was employed to select 58 respondents. The tool for collection of primary data was structured questionnaires. The data collected were analysed using production function and efficiency model. The linear production function analysis showed that the coefficient of multiple determinantion-R² of the production was 76.5% while the F-value was 27.6. The analysis revealed that among the variables, seed, hired labour and pesticide use in the groundnut production were significant (p<0.1) while fertilizer, family labour and farm size were not significant. The returns to scale was 1.77. For resource use efficiency, seeds, family labour and hired labour were under-utilized, while fertilizers and pesticides were over-utilized. It is concluded that in-spite of their small farm size, there is still opportunity to increase their production to attain optimal economic efficiency. The study recommends that farmers should be encouraged to use more variable inputs to get more profit and youth should be encouraged to participate in groundnut production.

Keywords: Groundnut Production, Production Function,- Regression Model and Resource Use Efficiency.