• E. O. OYEDEPO Department of Agricultural Economics and Farm Management Federal University of Agriculture, Abeokuta, Nigeria
  • A. A. ADEKANMBI Department of Agricultural Economics and Farm Management Federal University of Agriculture, Abeokuta, Nigeria



Budgetary technique, Nigeria, Ofada rice, Ogun State, production, profitability ratio


The paper undertook an economic analysis of Ofada rice production in five prominent rice growing areas of Ogun State.  A two stage purposive sampling technique was employed to select a total of 120 rice farmers from five local government areas which are major areas known for Ofada rice production in the state. Primary data were collected for the study through structured questionnaire and Focus Group Discussion (FGD) among rice farmers groups in the study area. Analytical tools adopted for the study included frequency, percentages, gross margin analysis and profitability ratios. Results of the analysis showed that majority of Ofada rice producers in the study area are male (73.33%). In terms of age, more than half of the respondents fell within the age range of 41 -50 years (63.33%) these farmers were young and within their active productive lives. Results of the distribution of respondents by annual income in the study area revealed that majority of the respondents (60.83%) obtained an income of between ₦201,000 and ₦400,000.00 per hectare.  However, 22.50% of the respondents obtained an income of less than ₦200,000.00 per hectare. The gross ratio, operating ratio, return per naira invested and profitability index were calculated to be 0.95, 0.80, 1.90 and 1.80 respectively. The gross margin of rice production per hectare was also estimated to be ₦222,020.00. All these indicate overall profitability of the enterprise. However, an average low yield of 2.5 tonnes per hectare was recorded due to constraints encountered during production. Some of the identified constraints in the study area are lack of capital (25.83%), lack of tractor for land clearing (10.83%), lack of good farm roads (16.67%), and inadequate processing and storage facilities (11.67%). It is then recommended that access to adequate capital, mechanical equipment and other incentives through farmers’ cooperatives and government aid for construction of farm roads could help increase rice production in the area and this will in turn help Nigeria to achieve a much desired self-sufficiency in rice production.





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