Economic analysis of intercropping rubber (Hevea Brasiliensis) in the rubber growing areas of Edo and Delta states, Nigeria

Abstract

This study was carried out in 2007/2008 planting season to evaluate the economics of intercropping rubber among smallholder rubber farmers of Edo and Delta States, through a survey of 54 rubber farmers in a multi stage, purposive and simple random sampling techniques. Data collected were analyzed using budgetary technique and production function analysis. Empirical result of the production function analysis indicated that selective herbicides and farm size had the expected positive sign and were statistically significant at (p>0.05) and (p>0.01). The return to scale (RTS) of 0.5267 indicated decreasing return to yield with respect to variable inputs. This shows that production is in stage II (rational zone). The production function analysis also showed that the coefficient of determination (R2) was high and indicated that a percentage of 91.30% are explained by inputs used for the regression. Budgetary analysis reveals an average variable cost/ hectare was N3,725.40($25.69) with N11,522.86($79.47) as profit and N7,797.462($53.78) is left as gross margin. Similarly, the per farmer analysis also revealed average revenue of N42, 288.89($291.65) with a gross margin of N28, 616.67($197.36). Rubber based intercrop is a profitable venture if well managed.