Rice (Oryza sativa) is a major staple crop in Nigeria, contributing substantially to food security, employment generation, and rural household income. In Imo State, rice production is largely undertaken by smallholder farmers operating under three dominant land tenure systems: communal, inherited, and rented land. This study examined the economics of rice production under these tenure systems in order to assess their effects on production cost, profitability, and investment incentives. A multistage sampling technique was employed to select one hundred and twenty (120) rice farmers from four Local Government Areas in the Okigwe and Orlu Agricultural Zones of Imo State. Primary data were collected using structured questionnaires and analyzed using cost and return analysis, including total revenue, total cost, net returns, return on investment (ROI), and expense structure ratio (ESR). The results showed that rice production was profitable across all three land tenure systems, although profitability differed significantly. Farmers operating on inherited land recorded the highest net return (?370,767.20/ha) and ROI (0.43), followed by those on communal land (?362,767.20/ha; ROI = 0.41), while farmers on rented land recorded the lowest net return (?336,719.20/ha) and ROI (0.37). Expense structure ratios were generally low, indicating that fixed costs constituted a small proportion of total production costs, thereby enhancing production flexibility and financial resilience. The superior performance of inherited land was mainly attributed to the absence of rental payments and greater reliance on family labour. The study concludes that land tenure systems significantly influence rice profitability and investment behaviour. Secure land access, efficient resource utilization, and supportive institutional frameworks are essential for improving rice productivity and farmer welfare. The study therefore recommends the promotion of secure inheritance rights, equitable community land governance, affordable land leasing arrangements, improved access to credit, efficient input utilization, and targeted capacity-building programmes to enhance sustainable rice production in Imo State.
Ugochukwu et al. (Tue,) studied this question.