Profit Efficiency of Rice Production in Onicha Local Government Area, Ebonyi State, Nigeria

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February 5, 2025
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JAFE Vol. 11(1): 29-41, 2024
Profit Efficiency of Rice Production in Onicha Local Government Area, Ebonyi State, Nigeria
*Akhigbe-Ahonkhai, E.C., Balogun, E.O., Ojo O.O., Jazuli, S. and Omoke, G.*
The study examined the profit efficiency of rice production in Onicha Local Government Area, Ebonyi State, Nigeria. Primary data were collected from a cross section of 120 farmers using a well-structured questionnaire. The objectives of the study were to describe the socioeconomic characteristics of respondents in the study area, estimate the profitability of rice production, determine the profit efficiency of rice production, analyze the factors affecting the profit efficiency and identify the constraints facing rice farmers in the study area. Descriptive statistics, Gross margin analysis and stochastic profit frontier technique were used to analyze the data collected. Majority of the respondents were female (41.8%), within the active age of 41-50 years, and married (75.5%). The budgetary analysis showed that the rate of return on investment was 0.28 and the benefit-cost ratio was 1.28 indicating that the enterprise was profitable. The result of the stochastic frontier analysis revealed that cost of purchase (p<0.01), fertilizer (p<0.01) and labour (p<0.05) were the significant factors influencing rice output in the study area. Inefficiency in rice production was found to increase with age (p<0.10), education (p<0.05), and farm size (p<0.01). The mean technical efficiency of 0.76 (76%) is an indication that available resources were not utilized optimally by the rice farmers in the study area. The study recommended that government at the state and local levels should engage the services of extension officers, and provide credit facilities to the rice farmers
Keywords:	Rice production, profit, efficiency, benefit-cost ratio
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