ANALYSIS OF PROFITABILITY IN SMALL SCALE MAIZE PRODUCTION IN BORNO STATE, NIGERIA.

The study analyzed small scale maize production in Borno State, Nigeria. One hundred and twenty small scale maize producers w ere selected for the study using multistage sampling procedure. Data w ere collected using structured questionnaire. The data w ere analyzed using budgetary technique and descriptive statistics. Gross margin was used to determined profitability while constraints faced by small scale maize producer w ere describe d by percentages and means. The result showed that the labour cost accounted for about 40.19% of the total cost of production. Cost of seed accounted for 5.00%, cost of fertilizer accounted for 36.06%, cost of herbicide accounted for 9.62%, cost of transportation accounted for 3.27% and cost of bags accounted for 5.77%. On the average, it cost N 52,000/ha to cultivate maize in the study area. An average of N 136,500/ha accrues to a farmer as the revenue, and N 84,500 is left as the gross margin. The result further indicated that, the operation ratio was 0.38 and the return per naira invested was 1.63. Constraints faced by small scale farmers w ere high cost of production inputs 93.10%, poor access to credit 72.40% and insecurity 64.70%. The study concludes that small scale maize production in the study area was profitable and the major constraint faced by small scale farmers was high cost of production input. Therefore, it was recommended that government should ensure ti ght and adequate security in order to boast agricultural sector in north eastern part of Nigeria and government should also subsidize the production input s . The study analyzed small scale maize production in Borno State, Nigeria. One hundred and twenty small scale maize producers w ere [A1] selected for the study using multistage sampling procedure. Data w ere [A2] collected using structured questionnaire. The data w ere [A3] [A4] analyzed using budgetary technique and descriptive statistics. Gross margin was used to determined profitability while constraints faced by small scale maize producer w ere [A5] describe [A6] d by percentages and means. The result showed that the labour cost accounted for about 40.19% of the total cost of production. Cost of seed accounted for 5.00%, cost of fertilizer accounted for 36.06%, cost of herbicide accounted for 9.62%, cost of transportation accounted for 3.27% and cost of bags accounted for 5.77%. On the average, it cost N 52,000/ha to cultivate maize in the study area. An average of N 136,500/ha accrues to a farmer as the revenue, and N 84,500 is left as the [A7] gross margin. The result further indicated that, the operation ratio was 0.38 and the return per naira invested was 1.63. Constraints faced by small scale farmers w ere [A8] high cost of production [A9] inputs 93.10%, poor access to credit 72.40% and insecurity 64.70%. The study concludes that small scale maize production in the study area was profitable and the major constraint faced by small scale farmers was high cost of production input. Therefore, it was recommended that government should ensure ti ght and adequate security in order to boast agricultural sector in north eastern part of Nigeria and government should also subsidize the production input [A10] s . [A1] Spelling? [A2] Spelling? [A3] Spelling? [A4] Spelling? [A5] Spelling? [A6] Use past tense [A7] the [A8] spelling? [A9] Omission: of [A10] Abstract exceed word limit.