Output response at the farm level: Maize supply and input demand in Kaduna State, Nigeria

Abstract

The degree of responsiveness of agricultural supply to input either in the short or long-term production decision is crucial in understanding the role of price and non-price factors in increasing supply. This study analysed output supply and input demand of maize production using a farm survey data of 600 randomly selected maize farmers from all agricultural zones in Kaduna State of Nigeria. Data were analysed using a modified Nerlovian model and set of input demand equations. The results showed that in all estimates (yield and hectarage) long run estimates are greater than the short run values and both were inelastic. The elasticity for lagged own price of maize was 0.23% in the short run and 0.17% in the long run were positive, marginal and inelastic. The hectarage elasticity of supply response for maize is 1.04 in the short run and 0.78 in the long run. The result of the input demand equations showed that the coefficients cost of agrochemical and farm size statistically affect seed, fertilizer and labour demand. The study portrayed that the most critical issues in maize supply are the lack of improved production technology, poor capital investment, land unavailability or poor land tenure system and poor policy incentives. The study recommends that, there is a need for State policy on agricultural research and extension, and adequate input price policies. The government is advised to dissolve the agricultural extension service system to local governments. This will allow agricultural extension system to be more location specific.