Profitability differentials between broadcasting and transplanting system of rice production in Southeast, Nigeria

Abstract

The study examined the profitability differentials between the broadcasting and transplanting systems of rice production in the Southeast, A multi-stage sampling method was used to randomly select 384 (192 broadcasters and 192 transplanters). Data collected were analyzed using descriptive statistics, budgetary method, and inferential statistics of paired t-tests. The study found that the mean age of farmers under the broadcasting system and transplanting system were 50yrs and 43yrs respectively. Result on profitability level showed that the Net Returns were ₦1,569,053.11 and ₦5,628,752.33 for farmers under broadcasting and those under transplanting system, the return on investment (ROI) was 0.72 or 72.0% and 1.92 respectively, with a profitability index of 45.5% for broadcasting system and 68.9% for transplanting system respectively. The null hypothesis was rejected because there was a (6.59)*** substantial difference in the profit margin of the production systems. The study identified the following constraints; high cost of labour, poor quality seedlings, climatic changes, inadequate storage facilities and high cost of equipment among others. Policymakers are recommended to proactively address these challenges to enhance the effectiveness and efficiency of these farmers.