ABSTRACT
The potentials of rice to solving the problem of food insecurity in Edo state and in Nigeria at large cannot be overemphasized. However, not much seems to be known as regards the profitability and resource use efficiency in rice production in Nigeria especially in Edo state. Therefore, the study analyzed the economics of rice production in Edo state, Nigeria. Its specific objectives were to describe the socio-economic characteristics of the rice farmers, estimate the costs and returns in rice production, determine the levels of technical, allocative and economic efficiencies of rice farmers, examine the determinants of inefficiency of the farmers and identify the production constraints confronting rice farmers in the study area.
Proportional random sampling technique using sample estimator was used to select 216 rice farmers from the sample frame of 245 farmers for the study. However, 211 farmers who were involved mainly in lowland rice production provided useful information for analysis. Primary data were collected using structured questionnaire. Data obtained were analyzed using descriptive statistics, budgetary analysis (gross margin and net profit), stochastic production and cost frontiers, inefficiency model and information from the five point Likert scale.
The results of the study showed that lowland rice production in Edo state was dominated (60.7%) by males. The mean age of the farmers was 56 years with mean household size of 8 persons. Farming experience of the farmers was about 31years with an average farm size of 3 hectares while 63% of the farmers had one form of education or the other. The lowland rice production was found to be profitable with gross margin, net profit and return per naira invested per hectare of₦334,368.49, ₦307,006.16 and ₦0.76 respectively. The farmers were not efficient in the use of resources. Their mean technical, allocative and economic efficiencies were0.61, 0.75 and 0.60 respectively leaving efficiency gaps of 39%, 25% and 40% respectively for improvement. On the inefficiency results, ageof the farmers positively and significantly influenced their technical inefficiency while sex and household size negatively and significantly affected it. As regards cost inefficiency, age, household size and farming experience were positively significant. The major constraints identified to affect the rice production were inadequate capital as well as high cost of fertilizer and labour. It was therefore recommended that the government should subsidized farm inputs like fertilizer, herbicides and pesticides and make them accessible to farmers and initiate policy that will ensure easy access of farmers to credit that will ultimately boost and sustain rice production.
