Profitability Analysis of Smallholder Rice Production Under Urea Deep Placement Technology and Conventional Fertilizer Application Practice in North Central, Nigeria

Abstract

The study examined the profitability of smallholder rice farmer’s under urea deep placement innovation and conventional fertilizer application practice in north central Nigeria. The study was carried out in six (6) LGA’s of Wushishi, Shiroro and Katcha in Niger State and Gwer East, Okpokwu and Kwande in Benue State respectively of North Central Nigeria. The study was guided by two objectives which were analyzed using descriptive statistics and standard farm management accounting models. Systematic, multistage and purposive sampling techniques were adopted to select 398 rice farmers from the study area consisting of 197 farmers using the urea deep placement innovation (UDP farmers) and 201 farmers practicing the conventional broadcast of urea fertilizers (Non-UDP farmers) for rice production. The structured questionnaire used to source the primary data for the study was administered by trained field extension agents to the respondent farmers using personal interview. However, assistance was given to farmers who were unable to read or undertstand the contents of the questionnaire. Findings from the study revealed that majority (78%) of the farmers were male; with mean age of 42years for UDP farmers and 41years for Non-UDP farmers. The mean farm size cultivated by the farmers’ was 1.2ha (UDP farmers) and 1.3ha (Non-UDP farmers) in Benue State, while in Niger State it was 3.6ha (UDP farmers) and 2.3ha (Non-UDP farmers) respectively. UDP farmers harvested an average output (paddy) of 4.23Mt/ha (3.2Mt/ha milled equivalent) as against 2.76Mt/ha (2.1Mt/ha milled equivalent) obtained by Non-UDP farmers. The Net Farm Income (NFI) and profitability ratio analysis revealed that UDP farmers earned a mean net farm income of N276, 986.68 as against the N117, 354.27 earned by Non-UDP farmers in Niger State; while in Benue State the mean NFI was estimated as N312, 451.84 for UDP farmers as against the N137, 326.64 earned by Non-UDP farmer respectively. The profitability ratio analysis revealed a return on investment (ROI) of 0.92 (92%) for UDP farmers in both states; while it was 0.46 (46%) and 0.48 (48%) for Non-UDP farmers in Niger and Benue State respectively. These results implies that UDP farmers had a higher return of (0.44) 44% for each invested naira (N) over their Non-UDP counterpart from both states. The key policy statement and recommendation from the study is that UDP technology should be spread widely among Nigerian rice farmers to enhance the countrys’ capacity to increase output and attain self sufficiency in rice production. To achieve this, there is need to create more awareness of the urea deep placement technology and address the challenges militating against its adaption among rice producers in the area and country at large.