ECONOMICS OF RICE PRODUCTION: A Case Study of Bauchi Local Government Area, Bauchi State, Nigeria

The study determined the costs and returns of rice production among farmers in Bauchi Local Government Area. Primary data were collected with the aid of structured questionnaires which were administered to fifty (50) purposively selected rice farmers. Data collected were analyzed using descriptive statistics, farm budgeting and regression analysis. The study revealed that majority (40%) of the farmers were within the age of 41-50 years with a mean age of 40.5 years. Also, majority of them (72%) were males and 80% had formal education. Furthermore, the result revealed that majority of the farmers (42%) had 1-10 years of farming experience and a mean age of 14.1 years, also 42% had farm size of 1.5-2.4 hectare per farmer with a mean of 2.25 ha . The study revealed that the farmers realized a net farm income of N33, 822.29 per ha. Also the returns on every naira invested as well as operating ratio and fixed ratio were 0.77, 0.45 and 0.14 respectively. The R-square value was 93.1%, Furthermore, seeds, herbicides and farm-size had significant effect on the output of rice (p≤ 0.01) and (p≤ 0.05) respectively. The marginal value product to marginal factor cost ratio revealed that fertilizer, herbicides, labour and farm-size were under-utilized. The identified problems facing rice farmers among others include: high cost of fertilizer and other chemicals, high cost of labour, low and unstable produce price. The study recommended that government and stakeholders should ensure adequate provision of inputs and provision of infrastructures to increase rice production