ABSTRACT

This study investigated the resource use efficiency in rice production in Bende Local Government in Abia State. The study arose as a result of the increasing demand for rice in Nigeria, and Bende Local area in particular. Random sampling was adopted in the selection of the communities and the respondents. Primary data were collected by interview schedule using structured questionnaire which was administered to the selected farmers. Means, percentages, multiple regression analysis and gross margin were employed in the data analysis. Multiple regression result shows that labour and quantity of rice seed used had positive effects in output of rice and that they were also significant. Level of farmer education and fertilizer usage had positive sign but was statistically non-significant. The result also show that it 'costs about N 171,227.13 to cultivate one hectare of rice and the gross margin was about N79,399.47. This also showed that this enterprise is profitable by returning N 1.45 for every N 1.00 spent. The result of the production function for rice in the study area show that fertilizer was positively signed and significant at 5% level of probability. The result also shows that the coefficient of rice seeds and insecticide were positively signed and highly significant at 1% level. The result of the allocative efficiency of resource used shows that fertilizer, seed, farm size, and other chemicals were underutilized. Whereas labour and capital were over utilized indicating inefficiency in resource use. The results also show that lack of credit was the most important constraint to rice production in the study area followed by limited land and distance from farm to market.