Abstract
Groundnut is the 13 most important food crop of the world. It is the world's 4 most important source th th of edible oil and 3 most important source of vegetable protein. The study examines the economic efficiency rd of resource use in groundnut production in Michika local government area of Adamawa State. It focuses on the relationship between groundnut out and the various inputs used by groundnut farmers, elasticity and economic efficiency of resource used in production of groundnut. Primary data were basically used with the aid of structured questionnaires administered on 143 farmers using a simple random technique. The regression analysis indicated that the cobb- Douglas function gave the best fit. The R was highly significant at 1% level 2 with the value of 0.784%. This implies that 78.84% of the total variations in groundnut yield is explained by combine influence of all the explanatory variables (farm inputs) in the regression equation. Three out of the eight independent variables were significant at 1% level, these were farm size (X), seed (x) and labour input 3 5 (X) more so they positively affect the groundnut indicating that the more the farm size, quantity of seed and 8 labour used, the more output. Economic efficiency of resource used showed the seed and labour were underutilized, while fertilizer and agrochemicals were over utilized