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Is Fertilizer Use Inconsistent With Profitability? Evidence From Sorghum Production In Nigeria

Author

Listed:
  • Omonona, B. T.
  • Liverpool-Tasie, L. S. O.
  • Sanou, A.
  • Ogunleye, W. O.

Abstract

This article contributes to a limited but growing literature challenging a core assumption that it is profitable for smallholder farmers in sub-Saharan Africa to use more fertilizer than currently obtains. Using panel data from Nigeria, Africa’s largest economy, we empirically estimated the effect of applied nitrogen on sorghum yields. We explored if fertilizer use was profitable for sorghum farmers and the conditions that could facilitate profitable use of the input. We found that while input subsidies or reducing the high transportation costs for securing inputs could increase the profitability of fertilizer use for sorghum farmers, increasing the yield response rate of applied nitrogen is a more effective approach to improve the profitability of fertilizer application for these farmers. This involves addressing key challenges smallholders’ face including poor fertilizer and soil quality, limited use of complementary inputs and management practices.

Suggested Citation

  • Omonona, B. T. & Liverpool-Tasie, L. S. O. & Sanou, A. & Ogunleye, W. O., . "Is Fertilizer Use Inconsistent With Profitability? Evidence From Sorghum Production In Nigeria," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 9(01).
    • Handle: RePEc:ags:naaenj:304676
    DOI: 10.22004/ag.econ.304676
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    References listed on IDEAS

    as
    1. Snapp, Sieg & Jayne, T.S. & Mhango, Wezi & Ricker-Gilbert, Jacob, 2014. "Maize Yield Response to Nitrogen in Malawi’s Smallholder Production Systems," Food Security Collaborative Working Papers 188570, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Takashi Yamano & Ayumi Arai, 2010. "Fertilizer Policies, Price, and Application in East Africa," GRIPS Discussion Papers 10-24, National Graduate Institute for Policy Studies.
    3. Snapp, Sieg & Jayne, T.S. & Mhango, Wezi & Ricker-Gilbert, Jacob, 2014. "Maize Yield Response to Nitrogen in Malawi’s Smallholder Production Systems," Food Security Collaborative Working Papers 188570, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    5. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, January.
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    8. Snapp, Sieglinde S. & Jayne, Thomas S. & Mhango, Wezi & Benson, Todd & Ricker-Gilbert, Jacob, 2014. "Maize yield response to nitrogen in Malawi’s smallholder production systems," MaSSP working papers 9, International Food Policy Research Institute (IFPRI).
    9. Yanggen, David & Kelly, Valerie A. & Reardon, Thomas & Naseem, Anwar, 1998. "Incentives for Fertilizer Use in Sub-Saharan Africa: A Review of Empirical Evidence on Fertilizer Response and Profitability," Food Security International Development Working Papers 54677, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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