ABSTRACT

The study tried to investigate the cost and returns allocative efficiency and socio- economic factors associated with maize, yam cassava products in the study area. Data were collected from primary source using structured questionnaires/personal interviews and complemented with secondary sources. Data were subjected to four functional forms but the linear modl was chosen as lead equation. From the study, fixed cost items has about 14.48% while variable cost items accounted fbr 85.49% of the total cost of production Total cost (Tc) was estimated to be #18,382.41/hectare while total revenue (TR) was #26,307.23/hectare giving a net return of #7925.1 1/hectare. Production function estimate show that a decreasing returns to scale exists for there farm products. The MVP of land, labour and other inputs were positive ..çe.pt capital resource. This however shows that revenue can be enhanced by raising the levels of these resources while an increased use of capital will lead to a dedline in revenue. Allocative: or price efficiency results ho: ver showed that none of the inputs were efficiently allocated with 6.3 1.8-6.9 and 5.2 for land, labour, capital and other inputs respectively. However, labour was the best resource utilized. In order to sustain good farm produL;'4 . '\'el in the study area resource should be shifted to labour resources.