Productivity and Profitability of Groundnut Production (Arachis hypogea L.) in Lafia Local Government Area, Nasarawa State, Nigeria

This study assessed the economics of groundnut production in Lafia Local Government Area of Nasarawa State. Structured questionnaire was used to generate primary data for the study. Descriptive statistics, gross margin analysis, and double-log production function were employed in the analysis. Results revealed that majority of the respondents (57.5%) were relatively young and fell within the active age (25 – 45).Male respondents marginally dominated groundnut production at 51.7% and majority (78.3%) were married. Results further revealed that significant (78.3%) number of the respondents had below 10 inhabitants in their households. Educationally, 50.8% of respondents were educated. The net farm income per hectare was N14,355 and with a return on invested determined at 0.81implying that for every naira invested, the farmers makes 81 kobo (N0.81)and the cost –benefit ratio was calculated at 1.81 indicating that groundnut production is a viable and beneficial enterprise in the area. The double-log production function showed that the coefficient of multiple determinants (R2) was 0.536 which means that 54% of the variables were accounted for by the explanatory variable included in the model, while the F-value was 6.890. It was observed that; labour, seed, fertilizer and farm-size were significant while herbicide was not. Major constraints faced by the farmers were inadequate capital, high cost of labour, transportation, fertilizer, problem of pest and disease, poor storage facilities. Despite these constraints, the farmers made profit. Therefore, groundnut production could be one of the poverty alleviating enterprise, if well-articulated. It is recommended that: Storage facilities should be provided so that surplus groundnut can be stored to avoid spoilage, improve varieties of groundnut should be developed and made available to the farmers so that their yield can increase, and Farmers should form themselves into social groups so that they can create an organized market for their produce.