Assessment of the Profitability of Rice Production in Afikpo North L.G.A.

Abstract

This study was carried out to determine the profitability of rice production in Afikpo North L.G.A Ebonyi State of Nigeria between April and September, 2019. Seventy (70) rice farmers (35 each) randomly selected from two prominent rice producing villages (Amasiri and Akpoha) in the study area were used as sample size. Questionnaires and personal interviews respectively were the basic primary and secondary means of data collection. Descriptive statistics, Gross margin analysis and Likert Scale were used to analyze the data obtained for socio-economic, profitability and constraints to rice production in the study area respectively. Results showed that socio-economic characteristics including gender, age, farm size, household, education etc are among the factors that affect rice production in the area. The result of likert scale showed that inadequate capital, high cost of labour, inadequate farm input etc were major constraints to rice production, while cost of transportation, cost of pesticide and marketing outlet were not considered as constraints rice production in the area. The result of gross margin analysis showed that Total Revenue and Gross margin were 270,000 and 214, 0000 respectively while Net Profit was N201, 500. The cost return ratio was 3.9k. This implies that the rice farming is highly profitable since the total revenue significantly outweighed the total cost. The cost return ratio of 3.9k implies that for every one naira invested in rice production about 4.0k is returned as profit. The study therefore recommends that Government should formulate agricultural enhancement policies that will address the major constraints observed in this study to ensure large scale and profitable rice production in Afikpo North LGA.