Abstract: The study analyzed the Profitability of Rice Production in Kuje Local Government Area of Abuja. Primary data was used for the study. Multistage sampling technique was used to obtain 50 small-scale rice farmers used in the study. The dataset was analyzed with both descriptive and inferential statistics. Descriptive statistics, gross margin analysis and multiple regression analysis were used to analyze the data. Results from the study show that Majority (76%) of the Rice farmers were male, Majority (86%) were married. 50% of the Rice farmers in the study were educated. The mean age was calculated to be about 44 years. The mean Household size was calculated to be about 6 persons and majority of the respondent had about 10 years of experience in rice farming. Gross margin analysis per hectare of rice production revealed that total revenue was N172,949.88, the total cost was N138, 009.58. The net farm income was calculated to be N34, 940.296. The benefit cost ratio was calculated to be 1.25 which implies for every ₦1 spent the farmer will expect a benefit of ₦1.25. Total labor cost was calculated to be 61.08% of the total costs. The linear regression result shows that coefficient of multiple determination (R2) was 71.8 percent, The F-stat was 22.423 and significant at one percent. Farm experience, sex, household size and marital status were statistically significant at one percent while education was statistically significant at five percent. The study recommends that adequate capacity building through training on rice value chain should be organize and conducted for the farmers in the study area since education had positive relationship with profitability of rice production. Also, policy that will motivated and encouraged women to participate in rice production should be implemented as a possible means of complementing their income and hence ensure sustained livelihood. Also, consistent policy support by government to transform the rice farmers’ mindset from seeing rice as only a food to a cash crop through the provision of farmer education on rice cultivation systems, extension service delivery, credit facilities available and the minimization of risk associated with high level of price fluctuation especially during bumper harvests.
Keywords: Profit, Profitability Ratio, Small Scale Rice Farmers.
Title: PROFITABILITY OF RICE PRODUCTION IN KUJE AREA COUNCIL, FCT. ABUJA
Author: Professor P. O. Idisi, Dr. (Mrs.) I . J Ogwu, Okoli, O. A
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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