Economic analysis of NERICA and non NERICA rice producers in Kaduna State, Nigeria

Abstract

The study investigated economic analysis of NERICA and non-NERICA rice producers in Kaduna State of Nigeria. Data for 2010 production season for NERICA and non-NERICA rice producers was collected from the two groups of farmers. The data was analyzed using descriptive statistics, gross margin analysis and Z – test. The mean rice farming experience was 25 years for both the participants and non - participants. The average household size was 6 persons for participants and 8 persons for non – participants. Most of the respondents however, (73% of participants and 82% of non – participants) acquired their land holdings through inheritance. The mean farm sizes for participants and non – participants were 1.9ha and 1.1ha respectively. The mean credit used by participants and non – participants were ₦25, 500 and ₦15, 200 respectively. The mean frequency of Extension Agents’ visit was 35 times for participants and 32 times for non-participants. The mean gross margin for NERICA and non – NERICA rice production is ₦145, 090.35 and ₦73, 325.40 per ha while return per Naira invested in NERICA rice and non - NERICA producers were 2.13 and 1.57, suggesting that NERICA rice production was more profitable. The one tailed test at 5% level of probability revealed that the difference in profitability between NERICA and non – NERICA was significant. The study recommends that the NERICA rice farmers to increase their land holdings for higher output, profit and benefit as well as return per Naira investment; and also to join the CBN Anchor Borrowers’ Programme for support to production in large scale for commercial purposes.

Keywords: Participants, Non-Participants, Gross margin, Investment return and NERICA