PROFITABILITY ANALYSIS OF RICE PRODUCTION IN WESTERN ZONE OF BAUCHI STATE, NIGERIA

Abstract

This study examined the profitability of rice production in Western Zone of Bauchi State, Nigeria. Multi stage random sampling technique was employed in selecting 80 respondents. Data were collected and analyzed using structured questionnaires, simple descriptive statistics and farm budgeting model. The findings showed that slightly above half (52.50%) of the respondents used mechanical power in rice production. The result further reveals that substantial proportion (40% and 36.25%) of the respondents used manual and animal traction in rice cultivation. The findings also indicates that most (90% and76.25%) of the respondents sourced their capital from personal savings and used hired labour in rice production. Majority (63.75%) of the respondents in the study area used broadcasting and 40% used drilling methods of rice planting. On the other hand, more than half (53.75%) of the respondents obtained 10-19 bags of rice per hectare with average yield of rice paddy of 23 bags. The costs and returns analysis reveal that total cost of production per hectare was N55, 885.25 while gross farm income per hectare was found to be N115, 450.00. In addition, return on every naira invested and gross ratio was N1.29 and 0.48, respectively. The study concluded that rice production in the study was profitable and recommends that farmers should form cooperative group. This will facilitate for effective access credit and pool their resources together to enjoy economics of scale.