Partial budget analysis of on-farm hot pepper (Capsicum annuum L.) production under varying rates of NPS fertilizer application and improved varieties: The case of Arba Minch Zuria District, Southern Ethiopia

Hot pepper is among economically high value crops growing in Arba Minch areas and contributes alot to the livelihood of smallholder farmers who engaged in this on-farm business. In this important on-farm business, there are production costs related to purchasing inputs that can improve the productivity of crop and analyzing the financial profitability of the business is found to be very important. Therefore, this study was conducted to assess on-farm financial profitability of hot pepper production under different improved varieties and varied rates of NPS fertilizer at Arba Minch through partial budget analysis. The study consisted of three hot pepper varieties (Bako Local, MarekoFana and Melka Shote) and six rates of NPS fertilizer (0, 50, 100, 150, 200 and 250 kg ha-1). The treatments were laid-out in factorial arrangement in randomized complete block design with three replications. The results of the partial budget analysis indicate that application of 200 kg NPS ha-1 for Melka Shote variety gave the highest net benefit (185,649.90 ETB ha-1) with a maximum marginal rate of return (5411.20%) as compared to other treatment combinations. Moreover, the net benefit curve also revealed that application of NPS fertilizer beyond 200 kg ha-1 decrease the net benefit obtained from the production of hot pepper across the three varieties. Therefore, production of Melka Shote variety with the application of 200 kg ha-1 NPS fertilizer could make the producers financially profitable and improve their income.