Profitability Analysis of Upland Rice Production Among Resource Poor Farmers in Kaduna State, Nigeria: A Stochastic Profit Efficiency Frontier Approach

Abstract

This research work analyzed profitability of upland rice production among resource poor farmers in Kaduna State, Nigeria: A stochastic profit efficiency frontier approach. A Multi-stage sampling technique was employed. Data of primary sources were collected through the use of a well-designed and a well-structured questionnaire from 150 sampled rice farmers. The outcomes show that the mean age of the sampled rice farmers was 42 years. The average farm size cultivated by the rice farmers was 3.18 hectares which show that the rice farmers were small scale farmers. The gross margin obtained was N522,188.16/ha with the gross margin ratio of 0.564 and the operating ratio of 0.392 indicating that rice production was a profitable enterprise. The significant factors influencing profit efficiency of rice production were: fertilizer cost (P<0.01), cost of hired labour (P<0.01), cost of chemical and herbicide (P<0.01), seed cost (P<0.01), transportation cost P<0.01 and cost of land and machineries (P<0.05). The constraints facing farmers in the course of rice production were: lack of credit facilities, inadequate extension agents, bad road infrastructures, lack of farm inputs, high cost of fertilizers, and high cost of labour. The study recommends that rice farmers should be provided with farm inputs like: improved seeds varieties, fertilizers, and agro chemicals at a subsidized price in order to improve productivity and profit efficiency, farm machineries like tractors, and irrigation facilities for dry season rice farming should be made avialable by Nigerian government to rice farmers to encourage mechanized farming all year round to ensure there is food security in the country.