Factors influencing profit efficiency among smallholder soybean producers in Nigeria

This research work evaluated the factors influencing profit efficiency among smallholder soybean producers in Nigeria. A simple random sampling strategy was used to select 200 soybean growers. Primary data were utilized based on a well-organized questionnaire. The data were evaluated utilizing descriptive statistics, and stochastic profit efficiency frontier model. The outcome shows that the average farm size was 1.31 hectares. Averagely, the age of soybean growers was 42 years. They had 13 years’ experience in soybean farming with a standard deviation (SD) of 4.78. The input cost elasticities were positive and estimated as seed (0.3264), fertilizer (0.1552), hired labour (0.3434), agrochemicals (0.3371), and land (0.3571), respectively. The price of seed, price of fertilizer, price of hired labour, price of agrochemicals, price of land cultivated were significantly different from zero in affecting the profit efficiency of soybean growers. Furthermore, the age, farming experience, household size, level of education were socio-economic stimulus significantly affecting the profit inefficiency of soybean growers. The number of extension contact and members of cooperatives groups were institutional stimulus significantly affecting profit inefficiency of soybean growers. The mean profit efficiency score was estimated at 77.9%, leaving an inefficiency gap of 22.1% which can be filled by using available technologies and resources to get to the profit frontier model. The study suggested that farm inputs such as fertilizers, improved seeds, agrochemicals, machines, and improved technologies should be given to soybean growers at affordable prices to increase output and profit efficiency.