Profitability Analysis of Soybean Production in Benue State

This study analyses the profitability of soybean production among smallholder farmers in Benue State, North Central Nigeria. Soybean has emerged as one of Nigeria's most economically important grain legumes, valued for its high protein content, nitrogen-fixing soil improvement properties, and growing industrial demand from the food processing and poultry feed industries. Benue State is among the country's leading soybean-producing states, with significant expansion in the crop area driven by processing industry demand. This study uses a survey design, collecting data from 200 soybean farmers in Makurdi, Gwer, and Logo local government areas. Farm budgeting, gross margin analysis, and production efficiency assessment using data envelopment analysis are conducted from farm record data. Descriptive statistics and regression analysis are applied. Findings reveal that soybean production is profitable in Benue State, with average gross margins of 62,000 naira per hectare. Improved seed varieties and recommended fertiliser rates are associated with yield increases of 45 percent over local practices. Post-harvest storage and cleaning equipment constraints result in price discounts of 12 percent for farmers selling impure grain. Technical efficiency scores average 0.74, indicating significant room for productivity improvement. The study concludes that soybean is a highly profitable crop for Benue State smallholders. It recommends improved seed access, post-harvest equipment support, and direct buyer-farmer linkages with processing companies.

Keywords: soybean production, profitability, Benue State, smallholder farmers, technical efficiency.