Abstract

The study was designed to determine the level of profitability of rice and factors influencing rice profitability in Kogi State, Nigeria. Primary data was randomly collected from 120 rice farmers with the aid of a set of structured questionnaire and interview schedule. The data were analyzed using descriptive statistics and regression analyses models applying four functional forms. The lead equation, semi-log model, was chosen using appropriate theoretical and econometric criteria after diagnostic tests including tests for heteroscedasticity and multicollinearity. Results indicated that rice farming in the state was profitable, with an average farm posting a profit of at least US$788.30 (N122, 974.40K) annually. Rice profitability in the area was largely influenced by farmers’ socio-economic attributes as well as production factors including farmers’ age, farming experience and years of formal education recorded by the farmers. The resource inputs that significantly influenced rice profitability in the area of study was volume of farm credit accessed, value of fertilizer applied and water/irrigation expenses. Consequently it was recommended that policies that will make farm credit available at affordable rates to the farmers, promotion of rice as a means of livelihood, enhanced access of farmers to educational facilities and removal of subsidy/government interference in fertilizer which increases the market price of fertilizer in the country be put in place in Nigeria. Government should however invest more in irrigation facilities to reduce the cost of fertilizer production in the study area.

Key words: Rice profitability, econometric evaluation, costs and returns, profitability determinants, Kogi State, Nigeria.