ANAYSIS OF COST AND RETURNS OF TOMATO PRODUCTION EMPIRICAL EVIDENCE FROM ANKPA LOCAL GOVERNMENT AREA, KOGI STATE

Abstract

The cost and returns of tomato production in Ankpa Local Government Area of Kogi State were analysed in this study. The study utilized both purposive and random sampling techniques to extract a sample of 150 respondents from the study area. Primary data were used, data were collected through a structured questionnaire. Data were analysed with Descriptive Statistics, Gross Margin and Net Farm Income analyses. The results showed that mean age of the respondents was 40 years, majority (73.33%) were male, majority (60.67%) were married, most (43.33%) had secondary education, mean household size was 8 persons, mean farming experience was 27 years, majority (94.67%) were not members of farmers’ association and majority (92.67%) were not visited by the extension agents. The study also revealed that the Gross Margin of tomato farming was N 766,027 while the Net Farm Income was N 524, 833.70, implying that tomato production in the study area was profitable. Both the benefit and operating cost ratios of 2.07 and 0.25 respectively proved the profitability of tomato farming in the study area. It was therefore recommended that tomato farmers should be sensitized to form tomato farmers’ associations in the study area to enable them obtain micro-credits from commercial banks and other lending institutions at a regulated interest rate. Also, government should help to intensify extension activities to so as to boost the capacity of farmers which will in turn help to enhance their productivities.