Net Returns Maximizing Combination of Arable Crops among Smallholder Farmers in Kaiama Agricultural Zone of Kwara State, Nigeria

Abstract

The study developed an optimal arable crop combination plans that would maximize the net returns of the smallholder farmers in Kaiama agricultural zone of Kwara State, Nigeria. Multi-stage sampling procedure was used to select 40 smallholder farmers. Interview schedule was used to obtain cross-sectional data from the farmers. Descriptive statistics, farm budgeting technique and linear programming model were used to analyse the data obtained. The results of the analysis showed that mixed crop enterprises were more profitable than sole crop enterprises. The LP result revealed that 1.75 ha of maize/cowpea, 1.64 ha of maize/soybean, 1.40 ha of maize/yam and 0.70 ha of sorghum/soybean were prescribed as solutions to maximize net returns in the optimal plan. The optimal net return was $937.98 which is 52.23% higher than the existing plan. Maize enterprise had the highest marginal opportunity cost while yam had the least. However, Capital and labour constituted the limiting resources in the optimal plan. It was concluded that the smallholder farmers have the potential to maximize net returns as resources were not optimally allocated in the existing plan for arable crop activities. Farmers should therefore adopt the optimum farm plans as prescribed in the LP solution.