ASSESSMENT OF GROUNDNUT PRODUCTION PRACTICES AND PROFITABILITY AMONG SMALLHOLDER FARMERS IN IMEKO AFON LOCAL GOVERNMENT AREA, OGUN STATE

Abstract

This study assessed the socio-economic characteristics, production practices, challenges of groundnut production, and profitability of groundnut farming among smallholder farmers in Imeko Afon Local Government Area of Ogun State, Nigeria. A total of 120 groundnut farmers were selected through a multistage sampling procedure. Data were gathered using structured questionnaires and personal interviews, and analyzed using descriptive statistics, gross margin, and return on investment (ROI) analyses. Results revealed that 75.8% of the respondents were male, mostly of the active age range of 40–59 years. Three-quarters of them (72.5%) practiced Mixed cropping, while 50.8% of farmers relied on both family and hired labor. More than half (59.2%) had access to farm inputs, and 54.2% used improved varieties, though access to irrigation (15%) and financial support (9.2%) remained low. The analysis showed a gross margin of ₦2,708,865.95, a net farm income of ₦2,610,115.95, and an ROI of 19.42%, indicating that groundnut production is profitable in the study area. However, farmers still contend with high input and transport costs, poor market prices, and pest and disease issues. This concludes that groundnut farming holds great potential for improving rural livelihoods and recommends policies that enhance access to inputs, affordable credit, extension services, and structured markets to sustain profitability and ensure food security.

Keywords: Productivity, profitability, groundnut production, smallholder farmers.