Profitability and Determinants of Profit Efficiency among Small Scale Organic Vegetable (Spinach) Farmers in Niger State, Nigeria

Abstract

This study assessed the profitability and determinants of profit efficiency among small-scale organic vegetable (spinach) farmers in Niger State, Nigeria, with the aim of generating evidence-based recommendations for improving productivity and returns. A multi-stage sampling procedure was used to select 148 farmers, and the data was analysed using descriptive statistics, farm budgeting techniques, a perception index, and the trans-log stochastic frontier profit function. Results revealed that the majority (82%) of farmers were male, with a mean age of 40 years, and 70% had some form of formal education. The average farming experience was five years, with 76.67% cultivating one hectare or less. Profitability analysis indicated that organic vegetable production was economically viable, with an estimated net farm income of ₦67,808.31 per hectare, a gross margin of ₦70,273.56, and a return on investment of ₦1.53 for every naira invested. The gross ratio (0.46) and operating ratio (0.44) further confirmed profitability. The stochastic frontier results identified planting material, organic manure, labour, depreciation on equipment, and farm size as significant determinants of profit efficiency, alongside socio-economic factors such as age, household size, farming experience, awareness, and access to information on organic farming. The study concludes that organic vegetable farming offers strong potential for income generation and environmental sustainability. Policy recommendations include improving farmers’ access to information, strengthening extension services, and promoting cooperative structures to enhance economies of scale and bargaining power.