Comparative Economic Analysis of Faro-54 And Nerica-1 Rice Production In Selected Local Government Areas, Niger State, Nigeria.
ABSTRACT
The study evaluates comparative economic analysis of FARO-54 and NERICA-1 riceproduction in Niger State, Nigeria.
Primary datawere collected using structuredquestionnaire, administered to 174 respondents for both FARO-54 and NERICA-1farmers during the 2014 cropping season.
Data collected were analyzed usingdescriptive statistics, farm budgeting analysis and stochastic frontier productionfunction.
Results of the study indicated that,the average age were 42 and 40 years forFARO-54 and NERICA-1 farmers respectively.
The average household size for the twogroups was 4 and 5 members per household forFARO-54 and NERICA-1 respectively.
Majority 59%and 54% of FARO-54 and NERICA-1 farmers had between 11-20 yearsof farming experience respectively.
The average farming experience for the two groupsare 11years. Majority 60%and 70% of FARO-54 and NERICA-1 rice farmers donothave formal education.
TABLE OF CONTENTS
TITLEPAGE………………..i
DECLARATION…….….ii
CERTIFICATION ……………iii
DEDICATION ………….…iv
ACKNOWLEDGEMENT ……..…v
TABLE OF CONTENTS…………vii
LIST OF TABLES…………. x
LIST OF APPENDIX…………. xi
ABSTRACT………..xii
CHAPTER ONE
INTRODUCTION …………………………………………………………………….1
1.1 Background of the Study ………………..………….………………………….1
1.2 Problem Statement………………………………………………………………2
1.3 Objectives of the Study………………………………………………………..4
1.4 Justification of the Study………………………………………………………4
1.5 Hypotheses of the Study……………………………………………………….5
CHAPTER TWO
LITERATURE REVIEW …………………………………………………………..6
2.1 Brief Description of FARO-54 and NERICA-1 Rice….……………….………6
2.2 Distinguish Characteristics of FARO-54 and NERICA-1 Varieties ………….6
2.3 World Production and International Rice Trade….……………………..…….7
2.4 Rice Production Trend in Nigeria ……….…………………..………….…….8
2.5 Resource Productivity and Efficiency in Agriculture ….……….…….……..10
2.6 The Stochastic Frontier Production Function ………………………………..15
2.7 Empirical Application of Stochastic Frontier Production Function …………18
2.8 Measurement of Profitability ………………………………………………..18
2.8.1 Gross margin analysis …………………..…………………………………..18
2.8.2 The net farm income analysis (NFI) ……………………..…………………19
CHAPTER THREE
METHODOLOGY………………………….……………………………………….20
3.1 Description of the Study Area ………………………………………………20
3.2 Sampling Techniques ..………………….………………..…………………21
3.3 Method of Data Collection ………………………………………………….22
3.4 Analytical Techniques ………………………………………………………23
3.4.1 Descriptive statistics …………………………………………………………23
3.4.2 Gross margin analysis………………………………………………………..23
3.4.3 T – test statistics……………………………………………………………..23
3.4.4The stochastic frontier production function ………………………………..24
3.5.5 Definition and measurement of variables. ……………………………………………..26
CHAPTER FOUR
RESULTS AND DISCUSSION ….……….………………………………………30
4.1 Socio-economic Characteristics of FARO-54 and NERICA-1 rice
Farmers in the Study Area…………………………………..………………30
4.1.1 Age distribution of FARO-54 and NERICA-1 rice farmers ………….…….30
4.1.2 Household size of the farmers ………………………………………………31
4.1.3 Farming experience among FARO-54 and NERICA-1 rice farmers ……….32
4.1.4 Educational level of the rice farmers……………………………………….33
4.1.5 Distribution of rice farmers based on farm sizes ……………………………35
4.1.6 Amount of credit obtained by FARO-54 and NERICA-1 rice farmers ..……36
4.1.7 Distribution of rice farmers based on extension contact …………………….37
4.1.8 Years of membership of cooperatives ………………………………………38
4.2 Costs and Return of FARO-54 with NERICA-1 Production ……………….39
4.3 Technical efficiency of FARO-54 and NERICA-1 Rice Production………..42
4.4 Maximum Likelihood Estimation of Stochastic Frontier Cost Function ……44
4.5 Technical, Allocative and Economic Efficiency Indices………….…………53
4.5.1 Frequency distribution of the technical efficiency in rice production……….53
4.5.2 Allocative efficiency of rice farmers ……………..…………………….…..54
4.5.3 Economic efficiency of rice farmers …………….……………………………56
4.6 Constraints associated with FARO-54 and NERICA-1 Farmers…..………..57
4.6 Test of Hypotheses ………………………………………………………….59
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS…………………51
5.1 Summary ……………………………………………………………………51
5.2 Conclusion ..…………………………………………………………………52
5.3 Contribution to knowledge …………………………………………………52
5.4 Recommendations ………………………………………………………….53
REFERENCES ………………………………………………………………………54
INTRODUCTION
Background of the Study
Nigeria is the largest rice producing country in the West African region (WARDA,2002). Rice production in Nigeria rose gradually over the years to surpass major riceproducing countries like Cote d‟Ivoire, and Sierra Leone(WARDA, 2002).
In 2002,Nigeria accounted for nearly 44% of the total rice output and 57% of the total riceproducing area in West Africa.
According to FAO (2010), the Nigerian rice sub-sectorwitnessed a remarkable increase in output from 2.5 million metric tonnes in 1990 toabout 4.2 million metric tonnes in 2008.
The principal factors driving increased riceproduction in Nigeria was population growth and urbanization (WARDA, 2002).
In response to the prevailing rice supply deficit situation in the country, successiveNigerian governments have intervened in the rice sub-sector, by increasing tariff on riceimportation so that local production could be encouraged.
This was expected to widenthe home market for the nation‟s local rice (Bamideleet al., 2010).
REFERENCES
Adeoti, J.O. (2002). Technology and Environment in sub-Saharan Africa: Emergingtrends in Nigerian Manufacturing Industry. Alddershort, United Kingdom:Ashgate Publishing Limited.
Adesina,A.A.(2012) Unlacking the potential of Agriculture in sub-sahara Africa,Nigeria”s Transformation Agenda, for Agriculture Abuja, Nigeria. FederalMinistry of Agriculture and Rural Development.
Aigner, D.I., Lovelli, C.A.K. and Schmidt, P. (1977).Formation and Estimation ofStochastic Frontier Production Function Model. Journal of Econometrics 6:21-37.
Ajani,O.I.Y. (2000). Resource productivity in food farming in Northern area of OyoState, Nigeria. Unpublished Ph.D Dissertation, Department of AgriculturalEconomics, University of Ibadan.
Akande, T. (2001). An over view of the Nigerian rice economy. A project report. TheNigeria rice Economy in competitive world constraints, opportunities andstrategic choices, WARDA.
Akpokodje, G., Lancoun, F. and Erestein, O. (2001). Nigeria rice Economy State of theArts, A Project Report. Nigeria Rice Economy in a competitive World:Constraints, Opportunities and Strategic Choices WARDA.
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