Profit Efficiency Among Groundnut (arachis Hypogaea L.) Farmers in Edu Local Government Area, Kwara State

This study examines the profit efficiency of groundnut farmers in Edu Local Government Area, Kwara State, Nigeria, by addressing three objectives: describing their socioeconomic characteristics, assessing the profit efficiency of groundnut production, and identifying the constraints limiting groundnut production. This study employs stochastic frontier analysis to evaluate the efficiency levels of groundnut farmers and identify factors influencing their performance. Data for the 2022/2023 cropping season was collected using a structured questionnaire and analyzed through descriptive statistics, the stochastic frontier profit function model, and a Likert scale for objectives one, two, and three, respectively. The results show that farmers, on average, have a profit efficiency score of 0.78, meaning they use their resources moderately well. Herbicide costs have a positive impact, with a significant coefficient of 0.1675 (p < 0.001). However, the high costs of fertilizer, seeds, and labor negatively affect efficiency, with coefficients of -0.0833, -0.0013, and -0.0758, respectively (p < 0.001). Farmers who receive help from extension services are less inefficient, as shown by a negative coefficient of -0.4722 (p = 0.053). While the overall efficiency level is moderate, there is room for improvement. The study identifies challenges like unstable market prices, limited access to credit, and poor soil quality, which reduce profits. It suggests actions such as lowering input costs, providing better extension services, and improving market access to help farmers increase their profits and sustain their farming activities.