Profitability Analysis of Rice Production in Hong Local Government Area of Adamawa State, Nigeria

Abstract

The study analyzed the Profitability of Rice Production in Hong Local government Area of Adamawa State, Nigeria. A multi stage random sampling technique was used to sample 188 rice farmers. Data obtained were analyzed using descriptive statistics for the socio-economic characteristics while gross margin technique and net farm income were used to analyze the profit. The result revealed that rice production is a viable venture as farmers earned a gross margin and net farm income of N68,509.40/ha and N59,152.01/ha respectively. It was further revealed that majority (70.74%) of the respondents were male, 69.68% were within the age of 31-50 years, 68.62% were married, majority (80%) of the farmers having a large household size, 76% of the farmers have attained one form of education or the other and 76.6% of the respondents had farm size ranging from 0.1-1.5ha. Also, the major constraints that farmers encountered were high cost of labour, high cost of inputs, inadequate capital, land fragmentation and inadequate new technology. The study recommends the need for government support in providing usefull intimation that can facilitate farmers’ access to prevailing of price of rice, farmers to be given proper orientation and/or basic trainings in major farm management techniques and with the constraints confronting rice farmers and also there is need for both governmental and nongovernmental organizations to grant soft loan to rice farmers to enable them addressed some of the constraints.