Costs and Returns Analysis of Yam Production among Small Scale Farmers in Karu Local Government Area, Nasarawa State, Nigeria Zaknayiba D.B.* and L. Tanko ** zaknayibadanladi@yahoo.com , unekmelikita@yahoo.co.uk *Department of Agricultural Extension and Management, College of Agriculture, Lafia, Nasarawa State, Nigeria **Department of Agricultural Economics and Extension Technology, Federal University of Technology, Minna, Niger State, Nigeria. Abstract Study was on the costs and returns analysis of yam production in Karu Local Government Area of Nasarawa State. A multistage random sampling technique was used in selecting respondents for the study. Primary data were collected with the aid of well structured questionnaire and interview schedule. Data were analyzed using descriptive statistics and gross margin analysis. The result of the analysis shows that, the total cost of yam production per hectare, returns per hectare, net farm income obtained per hectare and returns per naira invested were ₦124, 129.3, ₦ 271, 166.7, ₦147, 037.3 and ₦2.19 respectively. The major problems faced by the farmers included lack of access to inputs, high cost of inputs, poor producer prices, lack of capital, incidences of pests and diseases, poor transportation facilities and inadequate extension services. It was recommended that for improving production and earnings of farmers, there is need for government and nongovernmental organizations (NGO) to make inputs and capital available for farmers. Keywords: Costs and returns, yam production, small scale farmers Introduction Yam (Dioscorea spp) is one of the principal tuber crops produced in large quantities in the country. It is a major staple food appreciated for its taste and cultural roles (Bamire and Amujoyegbe, 2005). It is widely cultivated in the humid rain forest and the guinea savanna. According to Bababeye (2003), yam contributes more than 200 dietary calories per capita daily for more than 150 million people in West Africa while serving as an important source of income to the people. Some of the common yam species are white yam (Dioscorea rotundata), water yam (Dioscorea alata), yellow yam (Dioscorea cayanensis), three leaf yam (Dioscorea dumentonum)and aerial yam (Dioscorea bulbifera). The major yam producing areas in Nigeria include, the middle belt (Benue, Nasarawa, Kwara, Kogi and Niger), eastern parts of Nigeria (Imo and Anambra) and southwestern parts (Philip et al., 2006). It is a very important food crop in African countries; the region alone represents about 90% of the total world production of edible roots and tubers (FAO, 2007). PAT June, 2013; 9 (1):73-80 ISSN: 0794-5213 Online copy available at www.patnsukjournal.net/currentissue Publication of Nasarawa State University, Keffi