Comparative analysis of the profitability of rice seed and grain production enterprise among smallholder farmers in Anambra state, Nigeria

Abstract

This study examines the comparative analysis and profitability of rice seed and grain production among smallholder farmers in Anambra State, Nigeria. The researchers collected data from 400 smallholder rice farmers (200 seeds and 200-grain farmers) using a multi-stage sampling technique. The findings indicate that 56% of the grain farmers and 50% of the seed farmers are male. The average age of grain farmers is 44.14, while seed farmers have an average age of 37.08, suggesting that seed farmers tend to be younger. Additionally, a high percentage of both grain (87.0%) and seed (73.5%) farmers are married. In terms of production methods, 37.0% of grain farmers use broadcasting, while 51.5% of seed farmers practice direct seed sowing. The rest of the seed farmers (48.5%) use nursery and transplanting methods. The profitability index shows that seed production is more profitable than grain production, with indexes of 84.0% and 79.6%, respectively. The factors impeding rice farmers from maximizing their profits are classified into three categories: economic factors, institutional factors, and management factors. Economic factors include poor access to information and scarcity of labour during the farming season. Institutional factors involve high input costs and expensive machinery. The study also highlights cattle-related issues as a management factor that threatens rice farming in both enterprises. Based on the findings, the study recommends the development of a comprehensive agricultural policy to address the challenges identified, taking into account limited resources and the need for improved information access, affordable inputs, and effective management strategies.