Profitability Analysis of Soybean Production (2024/2025 Production Season) in Funtua Agricultural Zone of Katsina State, Nigeria

Abstract

Abstract

The study analysed profitability of soybean in Funtua agricultural zone (KTARDA II) of Katsina state. Multi-stage sampling procedure was used to select 159 soybean farmers. Farmers’ socio-economic characteristics, costs and returns of soybean production and constraints they faced were addressed. Structured questionnaire was used to collect data from the farmers. The data were analysed using descriptive statistics, Farm Budgeting Technique, depreciation methods, Benefit cost ratio and regression analysis. Majority (90.6%) of the farmers were male; their average age was 40.5years. Most (99.4%) of the farmers had formal education. Their average household size, land size and soybean farming experience were 16 persons, 4.5ha and 10.7 years, respectively. Majority (86.16%) were not members of cooperative societies; 83.65% had no contact with extension agent. The average variable, fixed and total cost incurred by the farmers were ₦88,631.73/ha, ₦51,709.91/ha and ₦140,341.64/ha, respectively. The average gross margin, profit and Benefit Cost Ratio obtained by the farmers were ₦1,259,322.06/ha, ₦1,207,612.15/ha and 9.60/ha, respectively. The most critical constraints faced by the farmers were inadequate capital, insecurity, price fluctuations, and extension services as admitted by 91.8%, 90.6%, 81.1% and 55.3% respectively.  Only 14.5% and 13.8% reported that they had problems of market gluts and government policies, respectively. It is concluded that soybean production in Funtua Zone is profitable. It is recommended that extension contacts, access to credit facilities and security issues should be improved; soybean farmers should organise themselves into strong cooperative societies.