Economics of Rice Production in Ibi Local Government Area, Taraba State, Nigeria

This study focused on the economics of rice production in Ibi LGA, Taraba State, Nigeria. Primary data were collected from 150 respondents through the use of multi-stage random sampling techniques with the aid of structured questionnaire. The statistical tools used to analyze the data were descriptive statistics, profitability model and multiple regression analytical technique were used. The socio-economic characteristics of the respondents indicates that; 52 % were male, 95% were below 60 years of age, 73% were married, 94% had less than 10 persons in their households, 89% had one form of education or the other, 81% had experience of less than 10 years. The total variable cost of the rice farming was ₦111,140 with labour and fertilizer having the highest share (30% and 29%) respectively, the total fixed cost was ₦32,165, gross margin and gross income was ₦322,445 and ₦465,750 respectively and for every naira invested, 2.25 naira was returned. The regression analysis revealed double-log as best fit with high F-value (196.5) and significant at 1% level and R2 of 0872. Age, education, experience, cooperative membership, gender, fertilizer, agrochemicals and labour were significant parameters. Insecurity, poor quality seeds, inadequate finance, pest and diseases, poor storage facilities, and insufficient supply of inputs were the significant parameters affecting rice production at different levels. It is concluded that rice farming in the study area was profitable and viable. It is recommended that rice farmers are to engage in engage into cooperative activities and inputs should be supplied to them in good time for optimum production