Economic study of the use of organic manure in yellow pepper production in Nsukka Local Government Area of Enugu State was carried out. The study was aimed at; describing the socio economic characteristics of yellow pepper farmers, identifying factors that motivate the use of organic manure by yellow pepper farmers, determining the yellow pepper farmers’ willingness to pay for processed biodegradable waste, determining and comparing the costs and returns from organic manure use only and users of both organic manure and mineral fertilizer. Nsukka Local Government was purposively selected for the study because of their high level of involvement in the production of the crop from nursery to maturity. A multi stage random sampling technique was used in the selection of the town communities. Primary data were generated through the use of structured questionnaire. Descriptive statistics, probit model Gross margin analysis and student t-test were employed in data analysis. The study showed that all yellow pepper farmers studied maintained their soil either by the use of organic manure only or use of organic manure supplemented with inorganic manure. 79% of the farmers maintained their soil through the use of organic manure sourced from poultry droppings. It was also observed that income, age and educational level of farmers were very important determinants of willingness to use and willingness to pay for organic manure. These parameters were consistent in sign in both ‘willingness to use’ and ‘willingness to pay’ models. A significant difference (-0.374 at 1%) between the net profits made by the two groups of farmers under study revealed the need to diversify organic manure source through waste recycling for prompt supply of organic manure at affordable price.
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