ECONOMIC ANALYSIS OF SESAME PRODUCTION IN GUMA LOCAL GOVERNMENT AREA OF BENUE STATE, NIGERIA

Abstract

This study analyzed the economics of sesame production in Guma Local Government Area of Benue State, Nigeria. Data was collected from 80 respondents using structured questionnaires and analyzed using descriptive statistics, ordinary least square and gross margin analysis. The findings of the study showed that the factors affecting sesame production are farm size(0.276), farming experience(-32.135), fertilizer(0.013) and gender(0.005) which all have probability significance at P-0.05 while Age(119.512) is signinificant at P-0.01 and household size(4.762) is at P-0.10. The positive coefficients have increasing effects on the yield of sesame while the negative coefficient has  a decreasing effect on sesame yield. The profitability result shows that total variable cost per hectare by sesame farmers (?147,381.00) and the total revenue (?304,560.00) yielded a gross margin of ?157,179.00 per hectare hence, sesame is a profitable venture. Inadequate funds, Lack of extension services, High cost of fertilizers, High cost of agrochemicals Were the severe constraints faced by farmers in sesame production in the study area. It was therefore recommended that Farmers be encouraged to form well-managed cooperatives or producer farmer groups and networks as avenues for accessing inputs as well as credit facilities to invest in farming, the government and research institute should make fertilizer and agrochemicals available at the right time and also at a subsidized rate.