Profit Efficiency of Soybean Production in Federal Capital Territory, Nigeria

This study evaluated profit efficiency of soybeans production in Federal Capital Territory, Nigeria. Multi-stage sampling technique was adopted for this study. Data were collected through the use of well-structured questionnaire. The questionnaire was distributed to 188 sampled soybean farmers in the study area. The data were analyzed using descriptive statistics, gross margin analysis, financial analysis, Cobb-Douglas production functional model. and stochastic frontier profit model. The results of the analysis show that about 25% of the sampled farmers were within the age bracket of 31-40 years, while 56% fell within the age ranges of 41-50 years. The mean age of the sampled soybean farmers was estimated to be 44 years. The results further revealed that majority 82.4% of the sampled respondents were male farmers. About 44.1% of the sampled farmers had no formal education. Majority (78.7%) of the sampled soybeans farmers had a household size range from 1-5 persons, the average farming experience of the farmers in the study area was 7 years. About 80.9% of soybean farmers had farm size between 1-2 ha. The total variable cost on average was N 130,184.51 with an estimated average total revenue of N340,250.00. The gross margin obtained was N210,063.49. The operating ratio and rate of return on investments were 0.383 and 1.613 respectively, this result implies that soybean production is profitable in the study area. The profit efficiency level attained by soybean farmers was 52% leaving a gap of 48%. The statistically significant factors influencing profit efficiency were price of fertilizer (P