Economic analysis of pigeon pea production in Oyo State, Nigeria. Obafemi Awolowo University.
The study profiled the current production systems of pigeon pea, analysed and forecasted the future farm size of pigeon pea, estimated the effect of changes in pigeon pea farm size on farmers’ income, and examined the constraints to pigeon pea production in Oyo State, Nigeria. These were with a view to exploring the economic potentials of pigeon pea production in the study area. A multistage sampling procedure was used to select the farmers. Purposive sampling technique was used at the first stage to select one of the four agricultural zones where pigeon pea is mostly cultivated in Oyo State. At the second stage, five Local Government Areas (LGAs) were selected using simple random sampling technique. Also, two communities were selected from the five LGAs using simple random sampling. At the final stage, proportionate sampling technique was used to select 50% male and female pigeon pea farmers based on the pigeon pea farmers’ list in each community, to arrive at a total of 150 farmers. A structured questionnaire was used to collect primary data from the farmers, which were analysed using appropriate descriptive statistics, Markov chain analysis (MCA), budgetary analysis, and importance ranking index. The study found that (100%) of the farmers still cultivated local variety. 85.40% male and 90% female sourced their seed in the open market, 52.3% male and 70.0% female farmers intercropped pigeon pea with other crops and 92.31% male and 95% female farmers produced mainly for consumption and sales at the local market. 73.0% cultivated between 1-5 acres of land and on the average, 1.55 and 1.72 acres of land were cultivated in 2017/2018 and 2018/2019, respectively. Generally, there was significant difference between the land area cultivated to pigeon pea in 2017/2018 and 2018/2019 (-1.63, p=0.1) and specifically for female (-3.36, p=0.01). The results of the MCA revealed that there was high probability for the farmers to remain on their initially cultivated farm size. The cost and return analysis showed that for every ₦1 invested in pigeon pea production, ₦2.14 was realised, although the female producers had significantly higher benefit than their male counterparts. The sensitivity of the gross margin showed that the gross margin was sensitive when varying the yield. The gross margin enters the inelastic region when the yield was decreased to about 70% of the average yield, which implies that even at a reduction in yield to 0.20t/acre, the gross margin was still positive. The inelasticity of gross margin for female farmers was higher than that of their male counterparts. The persuasive identified constraints included inadequate capital, pricing problem and lack of improved variety. The study concluded that the outlook of pigeon pea production seems promising as shown by the farm size cultivated at the equilibrium year.