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ECONOMICS OF MAIZE PRODUCTION IN EASN SOUTH EAST LOCAL GOVERNMENT AREA, EDO STATE

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Abstract
This study examined the economics of maize production in Esan South East Local
Government Area of Edo State. The specific objectives were to describe the socioeconomic
characteristics of maize farmers, estimate the cost and returns of maize
production, determine input elasticities and return to scale, and identify the major
constraints affecting maize farmers in the study area. A multi-stage sampling
procedure was employed to select 90 maize farmers. Data were collected using a
structured questionnaire and analyzed using descriptive statistics, gross margin
analysis, the generalized production function (GPF), and a 5-point Likert scale.
The socio-economic results revealed that maize farming in the area is dominated by
males (75.56%), with an average age of 45.68 years. Most farmers were married
(57.78%) and had small household sizes averaging 5 persons. The mean farming
experience was 15.31 years, while average farm size was 0.81 hectares, indicating
predominantly small-scale production. The gross margin analysis showed an average
total variable cost of ₦65,931.92 and total revenue of ₦86,798.33, resulting in a
positive gross margin of ₦20,866.41 per farmer. Results of the generalized production
function indicated that only pesticide use had a positive and significant elasticity
(0.111), implying efficient and productive use. Family labour (0.018), hired labour (–
0.0324), seed (–0.012), and farm size (–0.560) were either inefficient or over-utilized,
with farm size showing a large and negative significant elasticity. The mean return to
scale (RTS) was –0.413, indicating strong decreasing returns to scale. This suggests
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that increasing input levels leads to a decline in output, likely due to input congestion,
poor management, and general production inefficiencies among farmers.
The major constraints identified include pests and high input costs, while poor market
access, adverse climatic conditions, and poor road networks, were considered less
severe. The study concludes that although maize production is profitable, significant
inefficiencies and structural constraints hinder optimal productivity. It is
recommended that farmers receive training on input management, extension services
be strengthened, and infrastructural improvements be prioritized to enhance maize
production efficiency in the area.
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