Profitability and Technical Efficiency Analysis of Rice Production in Quan’ Pan Local Government Area of Plateau State, Nigeria

Abstract

This study investigated how profitable and technically effective rice farming was in Quan’ Pan Local Government Area of Plateau State, Nigeria. Using a multistage sample method, 120 respondents were drawn. The study’s findings proved that the farmers were 40 years old on average. The men were higher in numbers constituting 81.0% of the study population. 83% of the people were married and a greater number (81%) of them had at least some form of formal education with a typical household size of 9 persons. Findings from the study also showed that the farmers owned an average of 2.0 hectares of farmland and had acquired an average farming experience of 12 years. For the most of them (78.0%), farming was their primary occupation. The result also demonstrated that 78.0% never accessed credit or bank loans for farming as majority (63%) of the respondents acquired their farmlands through inheritance. The entire cost (total cost) of farming operation/ha incurred by the farmers was 139733 while the average output obtained per hectare was 699kg at a prevailing market/selling price of 285/kg. The total revenue (TR) measured in naira value of 199, 215 was realized. Gross margin (GM) and net farm income (NFI) stood at 70932 and 59482 respectively. The return on investment (ROI) was 0.42 meaning that for every naira spent on rice production, a profit of 0.42 is made. Age, educational level, farm size, farming experience and extension contact all had positive direct relationship with net income from rice production at 1%. The rice growers’ mean technical efficiency score was 0.659. Major constraints to rice production were high fertilizer prices (72%), inadequate capital (53%), lack of improved seeds (47%). The research suggests that government should subsidize farming inputs like recommended fertilizer and herbicides so as to reduce the over bearing cost burden of these inputs on farmers. Financial institutions should make credit facilities available and affordable to the farmers.