PROFITABILITY ANALYSIS OF RICE PRODUCTION IN OBI LOCAL GOVERNMENT AREA, NASARAWA STATE

Abstract

The study analyzed the profitability of rice production in Obi Local Government Area, Nasarawa State. Multistage sampling was used to 40 rice farmers. Descriptive analysis tools and Gross Margin analysis were used to achieved the objectives of the study.  The findings of the study showed that most (87.5%) of the respondents were in their active years. The result shows that 80% of the respondents were male, 62.5% of the respondents were small scale farmers with farm size between the ranged of 1-2 hectares. The result of the profitability analysis showed that the return per hectare was ₦210,000 and the total cost was ₦66,662.6. The net farm income obtained was ₦143,337.4 and return on investment was ₦3.2. This implies that one naira invested in the rice enterprise could yield up to ₦3.2 naira in returns. The result of the findings revealed that stealing of the products in the farm and pest and diseases outbreak to be the most militating factors against rice production in the study area. In Conclusion findings revealed that rice production was profitable enterprise in the study area. The following recommendations were made based on the findings: Farmers should be provided with adequate credit facilities at a reasonable interest rate in order to enhance rice farmers output that will translate to increase farm family income. Farmers should utilize farm inputs that can increase their profitability level in the study area and Government and non-government organization (NGOS) should enhance extension service so that farmers can have access to latest information on how to utilize inputs.