COMPARATIVE ANALYSIS OF PROFITABILITY OF PARTICIPATING AND NON-PARTICIPATING RAINFED RICE FARMERS IN THE ANCHOR BORROWERS’ PROGRAMME IN SELECTED LGAS OF KADUNA STATE, NIGERIA

Abstract

Rice remains a critical staple food in Nigeria, supporting both national food security and rural livelihoods. Despite its importance, productivity among smallholder rice farmers remains low, primarily due to limited access to improved inputs, credit, and extension services. To address these challenges, the Anchor Borrowers’ Programme (ABP) was introduced in Kaduna State in 2017. This study assessed the profitability of rainfed rice farmers who participated in the ABP compared to non-participants. A total of 263 farmers (143 participants and 120 non-participants) were selected using a multistage sampling technique across four Local Government Areas in Kaduna State. Primary data were collected using structured questionnaires and analyzed using descriptive statistics, gross margin analysis, and t-tests. Findings revealed significant differences in age, household size, farming experience, education level, and cooperative membership between the two groups. ABP participants recorded higher mean yields (3174.1 kg/ha), lower production costs (₦210,400/ha), and significantly greater gross margins (₦1,440,132) compared to non-participants. Return on investment was also higher for participants (6.84) than for non-participants (3.27), indicating enhanced profitability due to ABP support. Key constraints identified include inadequate access to capital, poor credit facilities, weak extension service delivery, and infrastructural challenges such as transportation and storage facilities. The study concludes that participation in the ABP has a positive impact on productivity and profitability. It recommends scaling up the program to include more farmers, improving access to credit, strengthening cooperatives, and enhancing extension services to sustain growth in rice production.