Production Elasticity and Returns-To-Scale of Smallholder Ofada Rice Farming, Ogun State, Nigeria

Abstract

This study on the production elasticity and returns-to-scale on ofada rice farming in Ogun State, Nigeria, was specifically achieved by examining the existing farm-size patterns, describing the socio-economic characteristics of ofada rice farmers, determining the fragmentation level and estimating the elasticity of production and returns-to-scale on ofada rice farms. Primary data were collected from a cross-section of 240 farm households involved in ofada rice production. A multi-stage sampling technique using a combination of purposive and simple random sampling method was adopted to select the respondents for interview using a well-structured questionnaire. Tools of analysis include descriptive, regression as well as fragmentation/Simpson index analyses. Results showed that literacy level among the farmers was 56.2%, majority (73%) being youths while most (59%) of them utilized their personal savings for farm operations. About 79% of farmers operated less than 2 hectares of farmland, with average number of parcels  and mean farm size being 5 and 1.52 hectares, respectively. Average number of parcels operated however decreased as farm size increased. The mean yield of rice increased as farm size increased. Farm size, fertilizer, hired labour and seed variety showed positive and significant relationship with rice output. (p ≤ 0.05). The returns-to-scale of 0.57 indicates a decreasing returns-to-scale. Pests and disease attack ranked highest among the problems encountered by farmers. The study recommends that adequate land should be made available to farmers, majority (about 69%) of whom do not own the farmland being cultivated. Rice farmers should be encouraged and empowered as this will enhance their status on land being cultivated. This can take the form of contractual arrangement whereby government, rather than individual land owners provide the land.