ECONOMIC ANALYSIS OF SMALL HOLDER RICE PRODUCTION SYSTEMS IN EBONYI STATE SOUTH EAST, NIGERIA

Abstract

Economic analysis of Upland and Swamp rice production in Ebonyi State, South east Nigeria was studied and analyzed in 2011 farming season. Purposive and multistage random sampling technique was used to select agricultural blocks, circles and rice farmers. The sample size was 240 rice farmers (120 Agricultural Development Programme (ADP) Upland rice contact farmers and 120 Agricultural Development Programme (ADP) Swamp contact rice farmers). Data for the analysis were collected from a structured questionnaire. The result indicates that mean ages of upland rice farmers was 37.3 years while swamp rice farmers had 39.2 years. The mean farming experience for both farmers were 8.5 years (upland rice farmers) and 8.8 years (swamp rice farmers) with farm sizes of 1.2 and 1.1 hectares for upland rice farmers and swamp rice farmers respectively. Upland rice farmers had an annual farm income of 189,410.00 NGN (1,222USD) as against 201,166.00 NGN (1,297.85USD) for Swamp rice farmers. The multiple regression (Cobb Douglas) estimates of the determinants of output of upland rice showed that coefficients age, farming experience, farm size, variable inputs and farm income were positively signed at given levels of probability while capital inputs was negative. The Cobb Douglas regression estimates of the determinants of output of Swamp rice showed that the coefficients of education, labour cost, farm size, variable inputs and farm income were positively signed and significant at given levels of probability as well as capital inputs which was negative. The result indicates that net profit from Upland rice cultivation was 92,800.00 NGN (598.71USD) with a Benefit Cost Ratio of N1.55 (1.56USD). The net profit from Swamp rice cultivation was 132,090.00 NGN (852.19USD) and a Benefit Cost Ratio of 1.75 NGN (1.75USD). Access to credit to rice farmers, subsidy on farm inputs, dissemination of improved rice technologies by extension agents and formation of farmer groups were advocated for increased rice production.