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Economic Analysis Of Upland Rice Production In Jigawa State

Economic Analysis Of Upland Rice Production In Jigawa State

Abstract:

This study sets out to asssess the economic performance of upland rice production in Jigawa State over the 1997/98 cropping year. Input-output data were collected from 120 small (0.1-3.0ha) and medium (3.1-6.0 ha) farms by means of structured questionnaire. The findings of the study shows that net returns per hectare were #20,705.80 (Costing family labour) and N22,246.20 (excluding family labour) for the small scale category and N44,999.60 (costing family labour) and N45,241.80 (excluding family labour) for the medium scale category. The average rate of return to total investment including the imputed cost of family labour was 184% and 416% for the small scale and medium scale categories respectively. Excluding family labour the average rate of return to total investment was 197% and 423% for the small and medium scale categories respectively. The Cobb-Douglas production function which was finally selected as the equation of best fit shows that farm size, fertilizer and labour were statistically significant at 5% level of probability as factors influencing the variability in rice yield. The resulting MVP (Marginal Value Product) to UFC (Unit Factor Cost) ratios for land, fertilizer and labour were found to be greater than unity, indicating that these resources were underused on the sample fields during the survey year. The regression result also indicated that 62.87% of the variation in yield among the sample fields are explained by the factor inputs included in the model. Rice production in the study area indicate an increasing return to scale (Ebi = 1.44) this implies that more output could be produced by using more of the resources. Some of the factors militating against increased rice production identified by the research include problem of inadequate fund, high costs of farm inputs etc. The study recommend that credit facilities should be made available to the farmers as to enable them increase their output. In order to reduce costs especially that of fertilizer, subsidy should be reintroduce and the Ministry of Agriculture and their agencies should device a meanms O; ensuring fair and even distribution of the inputs.


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