ECONOMIC ANALYSIS OF PADDY RICE PRODUCTION IN GWAGWALADA AREA COUNCIL, FEDERAL CAPITAL TERRITORY, NIGERIA

This study examined the economic analysis of paddy Rice Production in Gwagwalada, FCT Abuja. Primary data obtained through the use of questionnaire administered to hundred (100) randomly selected respondents was used for the study. The data collected was analyzed using descriptive statistics, farm budgeting technique, and profitability ratios. The result from this study show that Majority of the rice farmers were female and married, the mean age was approximately 40.55 and majority of the rice farmers are between ages 31 and 40, the mean household size was approximately 7 persons.  Majority of the rice farmers had household size between 6 and 10, majority of the rice farmers had formal education. The mean farming experience was about 7 years. Majority of the rice farmers had between 11 and 20 years in rice production. Most of the rice farmers had no access to credit. From the gross margin analysis, the total revenue was calculated to be N 795,500, the total cost was N 326,569. The net farm income was N 468,403, the benefit cost ratio was 2.19 The total variable cost was calculated to be 82.09% of total cost. Total labor cost was calculated to be 46.00% of the total costs and 56.04 of the total variable cost. The total fixed cost was 17.91% of the total costs. The benefit cost ratio was calculated to be 2.19 which implies for every ₦1 in costs the farmer can expect a benefit of ₦2.19, the gross margin ratio was 0.66. This implies that for every ₦100 generated in sales of paddy the, farmer has ₦66 left over to cover basic operating costs and profit. The return on investment was 1.29. This indicates that in the study area is profitable. Based on the various revelations of this study, it is evident that the paddy rice production is profitable in the study area. It was recommended Unemployed youths should be trained and empowered to venture into rice production by the Federal Ministry of Agriculture and Rural Development. Since rice production is profitable in the study area this will help reduce unemployment, Farmers should have access to credit to be able be able to carter for some of their operating expenses such as agro chemicals, fertilizers, and labour cost