scholarly journals Factors Influencing Economic Viability of Small Farmer of Rice Production in Bangladesh

Author(s):  
Farzana Yeasmin ◽  
Ismat Ara Begum ◽  
Fardous Ara Happy ◽  
Dilshad Zahan Ethen

The focus of this study was to conduct research on small rice farmers and to identify the factors and their influence in viability of rice production in Bangladesh. The study was conducted using a longitudinal survey made under the Village Dynamics in South Asia (VDSA) project of International Crops Research Institute for the Semi-Arid Tropics (ICRISAT). A total of 179,179,156 and 177 small rice farms were selected as a sample for the years of 2009, 2010, 2011 and 2012, respectively. Among 691 small farmers, 562 farmers were viable farmer and 129 farmers were non-viable farmers who were producing rice in the study area. The small farmers lived in the same socio-economic environment. The economic surplus of small farmer was 11018.5 tk. 12205 tk., 6006 tk. and 4461 tk. in different years. To achieve the objective discriminant function analysis was used. For this analysis eight discriminant factors were selected i.e. family size, farm size, education, value productivity from crops, net income from dairy, off-farm income, total fixed investment and domestic expenditure. It is found that off-farm income was the most significant discriminat factor among the eight factors related to the discriminating of viable and non- viable of small farmers of rice production Besides value from crops, total fixed investment and domestic expenditure were the other significant factors found during all the years.

Author(s):  
Olugbenga Omotayo Alabi ◽  
Ayoola Olugbenga Oladele ◽  
Mohammed Bello Usman

This study focuses on determinants of the agricultural loan decision-making process of rice (Oryza sativa) farmers in Abuja, Nigeria, using the Heckman two-stage model and factor analysis. This study was designed specifically to achieve the following objectives: determine the socio-economic profiles or characteristics of rice farmers, analyze the costs and returns of rice production, evaluate factors influencing rice farmers’ decision to obtain an agricultural loan, evaluate socio-economic factors influencing the amount of the agricultural loan, and determine the constraints or problems facing rice farmers. A multi-stage sampling design was employed. A total sample of one hundred (100) rice farmers was included, and primary data were utilized. Data were obtained through the use of a well-structured and well-designed questionnaire. Statistical and econometric tools used in analyzing data included descriptive statistics, gross margin analysis, financial analysis, the Heckman two-stage model, and principal component analysis. The results show that 63% of rice farmers were between the age of 31–50 years. The mean age was 41.90 years. About 65% of rice farmers were male, and 54% of them were married. Also, 93% of rice farmers had formal education and were literate. The household sizes were large, with an average of six persons per household. An average of 71,550 nairas was the loan amount granted to rice farmers by financial institutions. The average farm size amounted to 1.49 hectares. Factors influencing the decision of rice farmers to obtain agricultural loan included age (P < 0.01), marital status (P < 0.05), household size (P < 0.10), educational level (P < 0.05), farm size (P < 0.05), farm and non-farm income (P < 0.10), farm experience (P < 0.05), collateral property (P < 0.05), extension services (P < 0.10), and awareness of loan or credit facilities (P < 0.05). Rice production was profitable with a net farm income of 744,300 nairas. The gross margin ratio of 0.95 means that 95 kobos covered profits, taxes, expenses, interest, and depreciation for every naira invested in rice production activities. Socio-economic factors statistically and significantly influencing the amount of agricultural loan obtained by rice farmers included (P < 0.05) sex (P < 0.01), household size (P < 0.05) and educational level (P < 0.01). The constraints facing rice farmers in obtaining the agricultural loan and production activities included lack of collateral property, lack of fertilizer input, poor-quality feeder roads, lack of credit facilities, inadequate labor input, and complicated and costly administrative procedures to obtain a loan. It is recommended that agricultural loans be made available to rice farmers in sufficient amounts and at low-interest rates. Also, farm inputs, fertilizer inputs, improved seeds, and chemicals should be made available to rice farmers


Author(s):  
M. Ramakrishna ◽  
I. Bhavani Devi ◽  
S. Rajeswari ◽  
P. V. Satyagopal ◽  
G. Mohan Naidu

This study was conducted to estimate the factors influencing the viability of small and marginal farms in Rayalaseema region of Andhra Pradesh. Multistage sampling technique was employed for selection of samples at different levels (districts, mandals and villages) in the present study. A sample of 120 farmers was selected from two districts, six mandals and six villages. The farmers were categorized according to their land holding size into marginal (<1 ha) and small (1-2 ha) category. On the basis of economic surplus left, the sample farmers were grouped as viable and nonviable farmers. The farmers having positive economic surplus are viable farmers and the farmers with negative economic surplus are non-viable farmers. Out of 120 sample farmer’s only 37 farmers were viable and 83 remained non-viable. It is found that net income from live stock and dairy and net income from crops were the major significant discriminating factors that discriminate viable and non-viable farmers. Other significant factors were off farm income, farm size and family expenditure.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abraham Zakaria ◽  
Shaibu Baanni Azumah ◽  
Gilbert Dagunga ◽  
Mark Appiah-Twumasi

PurposeThe purpose of this study is to estimate the profitability of rice production for irrigated and rain-fed farmers; determine the factors that influence farmers' decision to participate in irrigation and the impact of irrigation on rice farmers' profitability in northern Ghana.Design/methodology/approachUsing cross-sectional data collected from 543 rice farmers in northern Ghana, the study employed both non-parametric (cost benefit analysis) and parametric (endogenous switching regression) approaches to analyse the data.FindingsThe empirical results reveal a significant difference between the profits of irrigated (GHS 2442.30) and rain-fed farmers (GHS 576.20), as well as the cost-benefit ratios between irrigators (2.53) and rain-fed farmers (1.37). Also, participation in irrigation was found to be influenced by relatively small farm size and off-farm income; while profitability was influenced by membership in a farmer-based organization, access to agricultural extension services and perception of decreasing rainfall intensity. Irrigation also had a positive significant net impact on profitability of rice production.Research limitations/implicationsThe results provide justification for development partners and the government of Ghana through the “one-village-one-dam” policy, to invest in irrigation in northern Ghana in order to improve household welfare as well as build resilience for sustainable production systems.Originality/valueThis study is the first of its kind to provide a robust analysis of the difference in profits of rain-fed and irrigated rice farmers while estimating the determinants of Ghanaian farmers' choice of either of the regimes within a bias-corrected framework.


2015 ◽  
Vol 11 (2) ◽  
pp. 204-215
Author(s):  
JC Ijioma ◽  
CK Osundu

The study investigated the adoption of improved rice varieties by farmers in Bende Local Government Area, Abia State, Nigeria. A multi-stage random sampling technique was used to select a total of 120 rice farmers. Descriptive statistics and tobit regression model were employed to analyze the data. Results showed that cumulatively 73.3% of the farmers fell within the age range of 20-50 years, most (86.7%) of the rice farmers were literate. More than half (57.5%) of the rice farmers are females. Result further indicated that 43.3% had household sizes of 5-8 persons. A fair proportion (33.3%) had been in rice production for 11-15 years, while majority (73.3%) belongs to farmers’ associations. Fairly good (51.6%) were aware of the improved rice varieties and used it, while a substantial number (93.3%) number of the farmers cultivated swamp rice. MAS 240 variety (mean=3.13), Faro 7 variety (mean=2.95), Faro II variety (mean=2.75), Faro 8 variety (mean=2.70.) and Faro 48 variety (mean=2.68) were highly adopted by farmers in the area. The Chi square value of 7.290 was significant at 1.0% probability level and indicates goodness of fit of the model used. Coefficient of age (-0.023), and gender (-1.967) were negative and significant at 10.0% and 1.0% level of probability respectively. The coefficient of education level (0.041), farm size (0.940), farming experience (0.206) and membership of farmers’ association (0.168) were significant at 5.0% and were positively related to adoption of improved rice varieties. Farmers encountered various problems of paucity of funds (35.8%), scarcity of inputs (22.5%), and dearth of information (20.89). Based on these findings it was recommended that rice farmers should form cooperative societies to enable them raise funds for buying agricultural equipment to boost rice production. More young male farmers should be sensitized and motivated by the state government to take up rice production since female farmers dominate rice production in the area. Extension agencies should increase the level of information dissemination and teaching to the rice farmers’ clientele.Key words: Adoption, Improved Varieties, Rice


Author(s):  
A. A. Dalla ◽  
S. K. Vihi ◽  
B. Jesse ◽  
L. G. Tor

This study assessed cost and returns analysis of groundnut production in Qua’an Pan Local Government Area of Plateau State, Nigeria. The specific objectives were to determine the socio economic characteristics of groundnut producers in the study area, estimate the cost and returns of groundnut production, determine the input and output relationship in groundnut production and identify the constraints faced by groundnut farmers in the study area. Multistage sampling technique was used in selecting 150 respondents for the study. Primary data were collected through the use of structured questionnaires and interview technique and were subjected to both descriptive and inferential statistics. The results obtained from the study revealed that the mean age of the respondents was 38 years with males dominating (82%) the groundnut production enterprise in the study area. Greater (85%) percentages of respondents were married with majority (64%) of them having primary school education. The respondents had an average household size of nine (9) persons, a mean farming experience of 9.3 years and an average farm size of 3.0 hectares. The result also revealed that majority (72%) of the respondents did not belong to any cooperative/ farming association. The result indicates that majority (79%) of the groundnut farmers acquired their farmland by inheritance. Groundnut production in the study area is profitable. The average output obtained per hectare was 696 kg at the prevailing selling price of ₦280/kg. The total revenue (TR), gross margin (GM) and, net farm income (NFI) per hectare obtained were ₦194880, ₦139380 and ₦123730 respectively. The return on naira invested (RNI) by farmers in the study area was ₦1.70 indicating that for every one naira invested, ₦1.70 profit was gained. The result of the double log production function analysis shows that farm size, cost of fertilizer and cost of labour were statistically significant and influenced the profitability of groundnut production.  Major constraints to groundnut production in the study area include; high cost of inputs (64 %), high cost of labour (49 %), lack of organized market system (47%), land tenure (42%) among others. The study recommends that groundnut stakeholders and research institutes should work more on introducing new improved groundnut varieties. Government should subsidize groundnut inputs like recommended fertilizer and herbicides so as to motivate farmers to grow groundnut. Government should establish organized marketing systems where farmers will have proper and reliable linkages with buyers thereby reducing the undue exploitative tendencies of the middlemen.  Improved storage facilities should be provided so that farmers could store their produce to avoid spoilage and for sale during times of scarcity.


2021 ◽  
Vol 1 (1) ◽  
pp. 1-9
Author(s):  
Sanusi Saheed Olakunle ◽  
Alabi Olugbenga Omotayo ◽  
Ebukiba Elizabeth Samuel

This study examined the resource-use efficiency of smallholder rice production farmers in Federal Capital Territory, Nigeria. The problem of resource use among small-scale rice production farmers is preponderance in the country. Hence, the study investigated the drivers of the problem in the Federal Capital Territory of Nigeria. Specifically, the study was designed to determine the factors influencing the resource-use efficiency of the respondents. A multi-stage sampling technique was used to select a total sample size of one hundred and seventy-five (175) rice farmers in Federal Capital Territory, Nigeria. Seven estimators such as age, household size, farming experience, educational level, extension services, access to credit, and off-farm income in the Probit model were found statistically significant. Results show that the probability of resource use efficiency of inputs used by the farmers increases with age, farm size, household size, educational level, extension services, experiences in farming, access to credits, but decreases where they have off-farm income. Mc Fadden Pseudo-R2 gives 0.6772, and the Probit model explains a significant proportion of the variations in smallholder farmers' resource use. The study concluded that the socio-economic variables in the model play an important role in influencing resource use efficiency. The study recommends that government agencies and donors should provide simplified, accessible and obtainable credits and grants to existing and prospective rice farmers in order to sustain the current giant stride in rice production in the country.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bismark Amfo ◽  
James Osei Mensah ◽  
Ernest Baba Ali ◽  
Gilbert Dagunga ◽  
Seth Etuah ◽  
...  

PurposeThis study investigates implications of crop and income diversifications on consumption expenditure (welfare) of rice-producing households in Ghana. It further compares diversification by three rice production systems: two-season rain-fed, two-season irrigated and one-season rain-fed rice production.Design/methodology/approachPrimary data were sourced from 225 rice farmers. Margalef index and three-stage least-squares were employed.FindingsMajority of rice-farming households in Ghana diversify livelihoods. The extent of livelihood diversification differs among two-season rain-fed, two-season irrigated and one-season rain-fed rice-producing households. Credit, distance to district capitals, production purpose and number of farming seasons influence crop and income diversifications, and consumption expenditure of rice-producing households. While crop diversification reduces consumption expenditure, income diversification increases it. Crop and income diversifications positively influence each other. Consumption expenditure reduces crop diversification but increases income diversification.Practical implicationsPolicy should be directed towards the promotion of more livelihood activities to boost rice farmers' welfare. There should be awareness creation and training programmes to enable rice farmers realize different economic activities within and outside the agricultural value chain.Originality/valueCrop and income diversifications were measured as continuous response variables, unlike previous studies that used a binary response variable. The authors established a synergy among crop and income diversifications, and consumption expenditure (welfare). The authors further compared crop and income diversifications by three rice production systems: two-season rain-fed, two-season irrigated and one-season rain-fed rice production systems.


2020 ◽  
Vol 18 (1) ◽  
pp. 9-19
Author(s):  
Y. Muhammed ◽  
M.A. Ojo ◽  
A. Abdullahi ◽  
O.J. Ajayi ◽  
S. Jibrin ◽  
...  

This study evaluated resources–use efficiency among rice farmers in Katcha Local Government Area (LGA) of Niger State, Nigeria. The specific objectives are to; describe socio-economic characteristics of the rice farmers, determine the production inputs influencing rice output, resource–use efficiency in rice production and identify constraints associated with rice production. Two-stage sampling procedure was used for selection of 88 rice farmers on which questionnaire was administered. Data collected was analyzed using descriptive statistics, multiple regression model and resource – use efficiency ratio. Results of the analysis revealed that 76.2% of the respondents were males, while 93.2% were married. The mean age, farming experience and household size of the respondents was 46 years, 23 years and 11 people, respectively. The multiple regression analysis result showed that double-log with R2 value of 0.9571 was chosen as lead equation and farmland (4.83, p<0.01), labour (2.34, p<0.05), seeds (4.04, p<0.01) and fertilizer (3.46, p<0.01) had positive coefficients and statistically significant. The efficiency ratio of resources-use in rice production showed that farm size (15.71) was under-utilized, while labour (0.001), seeds (0.554) and fertilizer (0.056) were over-utilized. Major constraints of rice production identified were inadequate training on resources usage (94.3%), followed by problem of pest and diseases (84.1%) and problem of storage facilities (81.8%). These problems ranked 1st, 2nd and 3rd, respectively. In conclusion, the production inputs were not efficiently utilized by the rice farmers. It was therefore recommended that, extension agents should educate farmers about relevant farm management skills in order to optimally utilize resources in rice production. Keywords: Resource-use efficiency, Rice farmers, Inputs, Production


Agrosearch ◽  
2020 ◽  
Vol 19 (2) ◽  
pp. 26-40
Author(s):  
S.O. Akanbi ◽  
W.I. Alarape ◽  
O.S. Olatunji

This study examines the implication of contract farming on Olam Out-growers farming scheme in Kwara State, Nigeria. The objectives of the study are to determine the costs and returns to production of rice, assess the productivity level of rice, evaluate the technical efficiency of rice farm and identify the determinants of the technical inefficiency of the rice farms in contract farming. In this study, the average net farm income of the rice farmers under the scheme was N191,862.56 and the land productivity level was 2,006.04kg/ha. The technical efficiency of the rice farm was estimated using Cobb-Douglas Stochastic Frontier Production function which shows that likelihood coefficients for quality of seeds, hired labour and farm size were statistically significant at 1% level. Likewise, the determinants of technical efficiency among the farmers were household size and farming experience. The results further show that the contract farming scheme has a positive impact on the lives of rice farmers. Therefore, there is a need for partnership with private contract farming outfits in order to improve the current level of access to inputs by rice farmers. Keywords: Contract farming, Out-growers rice farmers, Technical efficiency, Farm income


2019 ◽  
Vol 11 (3) ◽  
pp. 56
Author(s):  
Ani Domiah ◽  
Jani Januar

The rising of semi-organic rice farming in Watukebo Village is due to the doubthness in implementing the semi-organic system. Semi-organic rice farm system require considerable cost savings compared to conventional rice and in the short-term, semi-organic rice production will generally decline. The study was conducted in the Watukebo Village Banyuwangi Regency intentionally. The sample are taken by using total sampling method for semi-organic rice farmers and quota sampling technique for conventional rice farmers. The data used are primary data and secondary data. The Tools of analysis data used are income analysis, R/C ratio analysis, and Cobb-Douglas production function analysis. The results showed that : (1) there was no significant difference between the average income of semi-organic rice farmers and conventional rice farmers, (2) there was no significant difference between the average of cost efficiency of semi-organic rice farming with conventional rice farmers in Watukebo of Blimbingsari, and (3) factors that influence the production of semi organic rice significantly are land area, organic fertilizer, and urea fertilizer. Factors affecting the conventional rice production significantly are the number of seeds and labors.


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