PROFIT EFFICIENCY OF SMALL-SCALE RICE FARMS IN PATIGI LOCAL GOVERNMENT AREA, KWARA STATE, NIGERIA

This study examined the profit efficiency of small-scale rice farms in Patigi Local Government Area of Kwara State, Nigeria based on the data collected from 150 small scale rice farmers in the study area which was selected using a three-stage sampling method. The Cobb-Douglas Stochastic Frontier Profit Function, Descriptive statistics, Gross margin analysis were used to analyze the data obtained for profit efficiency, socioeconomic characteristics of the respondents and constraint faced by the rice farmers in the study area and; profitability of rice farming in the study area respectively. The result of the analysis of socio-economic characteristics showed that majority of the respondents (88.7%) are males and 88% of the respondents are married. It also revealed that the mean age of the small-scale rice farmers in the study area is 40years and less than half of the respondents (33.3%) have access to credit facilities. The result of the gross margin analysis showed that average total revenue and gross margin are #92,660 and #50,985.12 respectively while the Net return is #41,112.88. The return per Naira invested is #1.79 which implies that for every #1 spent. 0.97k is returned as profit. Result showed that the mean profit efficiency is 77% with minimum profit efficiency of 18% and maximum profit efficiency of 97%. The major constraints faced by the rice farmers are inadequate capital, high cost of labor, lack of credit etc. The study therefore recommends that the government formulates agricultural-improving policies that will solve the major constraints observed in the study to ensure profitable rice production in the study area. In addition, subsequent studies should consider flooding as a constraint to rice production.