Costs and Returns Analysis of Rice (Oryza Sativa) Production Under Rainy Season in Birnin-Gwari Local Government Area, Kaduna State, Nigeria.

Abstract

This study examined the costs and returns of rainy season rice production in Birnin Gwari local government area of Kaduna state. Two stage sampling procedure was employed to select forty-eight respondents (48) respondents for the study. Primary data were collected using structured questionnaire with the help of well-trained enumerators. Data were analyzed using descriptive statistics, Gross margin analysis and profitability ratios. Results revealed that the respondents were predominantly male (60.4%) and most (52.1%) were married. 25% had primary education,45.8% secondary education, and 12.5% tertiary education. The mean age for the households’ head was 33 years and the mean household size was 7 persons per household. The mean farming experience and annual farm income of the respondents were 17 years and ₦32,238 respectively. The average variable cost incurred per hectare was estimated to be N122,988 while the total cost of production was put at N 139,309. Gross revenue of N 257,000 was generated with a gross margin of N 134,012 and a net farm income of N 117,691. The profitability ratios of BCR=1.84, ESR=0.13, ROR=0.84, and GR=0.5, indicated that rainy season rice farming is highly profitable in the study area. The study therefore recommended that consistent government policies that would favor increase in paddy production, market information, extension service delivery, input subsidization and credit facilities be implemented.