AKSU Journal of Agricultural Economics, Extension and Rural Development
ISSN(Online): 2736-0040 ISSN(Print): 2695-1975
ISSN(Online): 2736-0040 ISSN(Print): 2695-1975
Abstract
Maize is a crucial staple crop in Nigeria, contributing significantly to food security, providing
essential nutrients, and serving as a primary source of income for millions of smallholder farmers. Its
production enhances rural livelihoods through job creation, boosts local economies, and plays a vital
role in agricultural diversification and sustainable development strategies across the country. This
study examines the economics of maize production in Ikwuano Local Government Area (LGA), Abia
State, Nigeria. Maize is a crucial raw material in various industries, including the production of
cooking oil, confectionery, and bakery products. In Nigeria maize has gained increasing prominence,
particularly in food processing industries and livestock feed mills. The specific objectives were to
estimate the costs and returns associated with maize production, assess the profitability, determine
the production function for maize farmers, and analyse the elasticity of production and returns to
scale in the region. A multi-stage sampling technique was utilized to select 80 maize based farmers.
Primary data were gathered using a structured questionnaire. Data analysis was conducted using net
farm income calculations and the Cobb-Douglas production function model. The findings reveal that,
on average, maize farmers in the area achieve a net return of ₦294,716.73 per annum. The Cobb-
Douglas model estimates indicate that 95.9% of the variation in maize output can be explained by the
independent variables included in the model. Significant factors influencing maize output include
capital (p<0.1), labour (p<0.1), planting materials (p<0.01), and inorganic fertilizer (p<0.01). The
study recommends that, given the profitability of maize production in the study area, both private
individuals and the government should implement supportive measures to encourage more farmers to
engage in maize farming as a viable professional pursuit. Also, there should be adequate provision of
capital by the Government to smallholder maize farmers to boost production