Poverty in Nigeria is overwhelmingly a rural problem. In 1985, 86.6 percent of those living
below poverty line of US $1 per day were in the agricultural sector. This figure dropped to 66 per cent
in 1992. However, of the total population of poor people in 1992, 10 million were living in the rural areas
and are engaged in farming. Nigerian small-scale farmers are characterized by the use of unimproved
inputs and traditional production tools that are capable of generating only very small incomes. This low
income of the farmers leads to vicious cycle of poverty with low levels of savings and investments, which
in turn leads to low productivity and low income. In explaining the poverty status of farmers, it is
necessary to look into the profitability of their farm enterprise to show the close links existing between
productivity and farm income. This study attempts to estimate the profitability of sole sorghum production
on small and large scale farms, it uses the gross margin analysis to determine the farm income on small
and large scale farms. Empirical results indicate that the farmers are making profits, given the benefits
relative to costs involved in sorghum production on both the small and large scale farms. To fully tap the
potential of increase productivity and farm income, the study surmises that expanded access to improved
technologies on sorghum production should be extended to the farmers through extension services.