Comparative Profit Analysis of Rice Production Enterprise among Farmers in Anambra and Ebonyi States, Nigeria

Abstract

The study compared profitability of rice production enterprise among farmers in Anambra and Ebonyi States, Nigeria. The population of the study included all rice farmers in the two states. A multistage sampling technique in combination of purposive and simple random sampling techniques was used to select 160 rice farmers. Primary data through the use of validated interview schedule were used to collect data for the study. Data were analyzed using percentage, mean and gross margin (GM) analysis. Results of the finding showed that majority of rice farmers were within their middle, active and productive ages; and had very long years of rice farming experience. Farmers in Anambra State made gross margin (GM)/net profit of ₦ 59,105 and ₦ 55,355 from paddy sale using transplanting and broadcasting methods, respectively, while the benefit/cost ratio (BCR) per 0.5 ha of paddy production were 1.83 and 1.85 for transplanting and broadcasting methods, respectively. In Ebonyi State, farmers made net profit of ₦ 53,800 and ₦ 48,100 from transplanting and broadcasting methods in 0.5 ha, respectively, while the BCR per 0.5 ha of paddy production were 1.56 and 1.73 for transplanting and broadcasting methods, respectively. Therefore, overall rice production enterprises in the two states are profitable and lucrative ventures. Inadequate fund for start-off, difficulty in obtaining credit, inadequate improved processing and milling machinery, high cost of privately sold agro-input such as fertilizers, poor road network, difficulty in forming co-operative society, poor extension service visit to farmers, high cost of rice production among others were the serious constraints to rice production identified. The need to increase farmers’ access to credit in order to boost rice production and increase income was recommended. Also, both indigenous and foreign investors were highly encouraged to invest into rice production.