ABSTRACT

This study investigated the cost-volume-profit analysis scale farmers in Bende Local Government Area of Abia State. The survey aimed among other things at computing the gross margin (net income) of the two-rice production system namely Swamp and Upland systems. Information on variable inputs and outputs as well as socio economic factors such as age, sex, level of participation of rice farmers in the study area and cost and return associated with the farm operations were collected with structured questionnaire. Data collected were analyzed using statistical techniques such as percentage, mean and gross margin (net income) analysis and marginal rate of returns determined over 2008 and 2009 cropping seasons. The result revealed that both system of rice production were profitable. Change in net income (Gross margins) of swamp of rice production was 11,4 7.60, with a marginal rate of return of 1.08 per hectare (ha), while the change in net income of the upland rice production was 1,511.96 with a marginal rate of return of 0.11 per hectare (ha) between 2008 and 2009 cropping seasons in Bende Local Government Area. Constrains to rice production include poor state of road, high cost of labour and inaccessibility to investment fund among others. In light of these problems, recommendations were proffered to include increase in services with special teaching programs for rice farmers and conduct such training programmes in the farmers' domain. The farmers are also advised to remain committed to their entrepreneurial spirit by reforming cooperative societies. Government and non-Governmental organization (NGOs) should support these societies and provide the necessary inputs needed in rice production.