This study examined the resource-use efficiency and profitability of lowland rice farming in Ebonyi North, Nigeria. A cross-sectional survey design was employed, and primary data were collected from one hundred (100) sampled lowland rice farmers using structured questionnaires. Descriptive statistics, budgetary analysis, Cobb–Douglas ordinary least squares (OLS) regression, and marginal value product to marginal factor cost (MVP/MFC) ratios were used for data analysis. The Cobb–Douglas results showed that farm size, labour, seed, fertilizer, and agrochemicals had positive and statistically significant effects on rice output, with the model explaining a substantial proportion of the variation in production. The estimated returns to scale indicated increasing returns, suggesting that farmers could enhance output through expanded and more efficient input use. Allocative efficiency analysis revealed under-utilization of land, labour, and fertilizer, and over-utilization of seed and agrochemicals, implying sub-optimal resource allocation among farmers. Budgetary analysis demonstrated that lowland rice farming is profitable in the study area, with positive net farm income, a benefit–cost ratio greater than unity, and a favorable return on investment. Despite this profitability, inefficiencies in input use constrain potential income gains. The study therefore concludes that improving input allocation, strengthening extension services, and facilitating farmers' access to productive resources would enhance efficiency and profitability of lowland rice production in the study area.
Samuel Esheya Esheya (Thu,) studied this question.