Economic Analysis of Irrigated Irish Potato Production in Plateau State

Abstract

The study examined the economics of irrigated Irish potato production in Plateau State. A multistage sampling technique using purposive and systematic random sampling was used to obtain data from a sample size of 120 respondents using structured questionnaires. Data were analyzed using Descriptive Statistics, Gross Margin Analysis, Benefit –Cost Analysis and Sensitivity Analysis. Results reveals that majority of the farmers were educated (64.17%) adults (58.33%) with long years (97%) of experience in Irish potato irrigation farming, and owned an average of 0.7 hectares of irrigated farm land each. Cost and Return analysis revealed that costs of seeds, labor and chemical fertilizers made up the highest (89.40%) portion of the average total variable cost of production. Results also revealed that irrigated Irish potato production in Plateau State is a profitably lucrative enterprise with a robust economic viability as shown by values  of Gross Margin (N655,637.88), benefit–Cost Ratio (2.64) and Sensitivity Analysis ratio (2.16). The study recommends expansion in irrigated Irish potato farm lands in addition to adoption of technologies that will minimize cost of seeds, labor and chemical fertilizers.

Keywords: Gross Margin, Benefit, Cost, Sensitivity, Profitability.