ECONOMIC APPRAISAL OF MANGO-GUAVA-CASHEW PLANTATION FARMING IN KOGI STATE NIGERIA

This study conducted Economic Appraisal of Mango-Guava-Cashew Plantation enterprise in Kogi State Nigeria and determined whether the plantation enterprise generated a positive Net Present Value; an Internal Rate of Return which is greater than the opportunity cost of capital; a Benefit Cost Ratio which is greater than unity; conducted sensitivity analysis on Net Present Value and Internal Rate of Return; and determined with Monte Carlo Simulation technique the expected Net Present Value and Internal Rate of Return.This study reviewed publications on fruits, (mango, guava and cashew inclusive) and also studies on mango, guava and cashew individually. The data used in this study was secondary data obtained from Fadama III project Implementation Completion Studies carried out in Kogi state. Available data was collated and analyzed using Microsoft Excel spread sheet. The analysis was hinged on the theory of the firm, sensitivity analysis and Monte Carlo Simulation technique. The Internal Rate of Return was estimated at 36%; the Net Present Value was estimated at N8,131,328 and the Benefit Cost Ratio was estimated at 25.4. Since the Internal Rate of Return was greater than the hurdle rate of 12%, the estimated Net Present Value was greater than unity and estimated Benefit Cost Ratio was greater than unity, it was concluded that mango-guava-cashew plantation in the Kogi State of Nigeria was profitable and could pay back any loan and leave some surplus for the farmer. The constraints to plantation agriculture in the study area were pests and diseases, inadequate capital, high cost of inputs such as seeds, fertilizers and labour respectively, high cost of transportation and lack of access to market. It was recommended that practical steps should be taken to address the problems of land fragmentation. Productivity enhancing support services such as fertilizers, herbicides and chemicals should also be readily available and at affordable prices to farmers. An effective and efficient agricultural extension service scheme should be put in place to avail farmers with the opportunity of managing their small farms more effectively for optimal productivity.