Economics of Rice Production among Beneficiaries of Anchor Borrowers Programme in Gerie Local Government Area of Adamawa State, Nigeria

Abstract

This study examined the economics of rice production among beneficiaries of the anchor borrowers programme (ABP) in Gerie LGA of Adamawa State, Nigeria. Multistage random sampling was employed to select respondents for the study. Structured questionnaires were the instruments used for data collection. A sample of 85 farmers was used for the study. Percentages, means, frequency, maximum, minimum, budgetary techniques and stochastic frontier production function were the analytical tools employed. The results of the socioeconomic characteristics of the respondents revealed that the majority (76%) of the farmers was headed by males; most (72.8%) were within the age range of 30 – 49 years and majority (90%) were married. Results from the budgetary techniques showed that the gross margin per hectare was ₦75,087.4 indicating production of rice among the farmers is profitable since the gross margin estimated has a positive value. The result also showed that mean economic efficiency (EE) recorded was 0.67 (67%), with maximum of 0.94 (94%) and a minimum EE of 0.34 (34%) indicating that the respondents are not fully economically efficient in rice production in the study area. The major constraints faced by rice farmers in the study area were identified among others to be inadequate credit, limited farm size and high cost of transportation. Finally, it was recommended among others that policies geared towards investment in credit, land tenue and means of transportation towards achieving effective production should be formulated.