OUTPUT DIFFERENTIALS, TOTAL FACTOR PRODUCTIVITY AND USE INTENSITY IN RAIN-FED RICE PRODUCTION SYSTEMS OF NIGERIA

Abstract

Rice production in Nigeria has not kept pace with increase in demand such that importation is used to bridge the demand-supply gap, resulting in drain on foreign exchange reserves. Nigeria has the potential to produce enough rice for local consumption and export through rain-fed Lowland Production System (LPS) and Upland Production System (UPS), which currently account for 73-80% national rice production. However, input use level and productivity differentials between rain-fed lowland and upland production systems have not been well documented. The output differentials, Total Factor Productivity (TFP) and input use intensities under the rain-fed upland and lowland production systems were therefore investigated. Ekiti and Niger states were selected from southwestern and North-Central zone for the study. The selection was based on the share of the states in rice production representing the upland and lowland production systems for Ekiti and Niger states respectively. In each state, a random selection of two Agricultural Development Programme (ADP) zones was carried out. Eight Local Government Areas (LGAs) were randomly selected from the selected ADP zones. Thirty villages were randomly selected from the LGAs from which 335 rice farmers were randomly selected based on probability proportionate to the population of rice farmers in each village. Data were collected on socioeconomic characteristics, farm-holding, inputs and output using structured questionnaire. Data were analysed using descriptive statistics, factor use intensity measure, TFP measure and multiple regression analyses at p=0.05. Mean household size, farming experience and commercialization level were 11.0±5.0 people, 22.0±12.3 years and 81.0%±7.7% respectively for LPS and 7.0±4.0 people, 13.7±8.7 years and 77.3%±16.3% respectively for UPS. The proportion of total farm-holding cultivated to rice under UPS and LPS was 43.9%±21.5% and 37.0%±14.8% respectively. Mean farm size was 1.9±1.7 hectares and 2.7±1.7 hectares respectively for UPS and LPS. Input levels at 86.7% seed rate, 20.3% fertilizer and 52.0% agrochemicals in UPS and 51.7% seed rate, 46.1% fertilizer and 16.7% agrochemicals in LPS were sub-optimal relative to WARDA's recommended levels. Mean yield was 2.0tonnes/ha for LPS and 1.2tonnes/ha for UPS. A significant output differential of 0.8 tonnes/ha existed between UPS and LPS. Farmers in UPS and LPS produced 53.7% and 42.3% of their potential outputs. Potential-actual output differentials for UPS and LPS were 1.0tonne/ha and 2.7tonnes/ha respectively. Levels of TFP were 5.6 and 5.2 in UPS and LPS respectively. Increase in output and lower production costs increased TFP. Also, extension visits and commercialization level significantly enhanced TFP in both production systems. Further, increase in household size (0.56) and farming experience (0.22) significantly enhanced TFP in LPS while TFP was significantly reduced by the increase in farm-homestead distance (-0.14) in UPS. Both lowland and upland production systems produced below their potentials but with higher yield in lowland production system. Input use intensification in rain-fed upland and lowland production systems would result in increased rice output while total factor productivity can be enhanced through higher commercialization levels and extension visits.