AGRICULTURAL FINANCING OF RICE PRODUCTION IN NIGERIA

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AGRICULTURAL FINANCING OF RICE PRODUCTION IN NIGERIA

ABSTRACT

This project work was carried out to investigate how rice production is financed in Edo State a case study of Owan East Local Government Area, Nigeria. This is due to the fact that rice is a widely consumed crop in Nigeria, in the view of farming, for farmers to carry out their farming operation, government and agricultural banks should give out loans to farmers. The research questions answered are; What are the various sources of finance for the cultivation and production of rice? Does rice production serve as a source of livelihood for farmers? Does rice production business serve as a source of employment opportunities? Does the importation of rice affect the rate at which rice is produced in the country? What is the main source of finance for rice prod? The rice of the data analysis showed that the main source of finance for rice production is their personal saving, a followed by support from families and friends.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Rice (Oriza Sativa) is an integral part of human being, it is the world’s only crop that was planted by emperors and kings offered to the gods and eaten by both the wealthiest and the poor. Rice is an annual crop and the most important stable food crop in tropic countries; commercially it is the most important cereal after wheat. It is widely consumed and there is hardly any country in the world where it is not utilized in one form or the other. In Nigeria rice is one of the few food items whose consumption has no cultural, religious ethnic or geographical boundary. It is available in five stars hotels in the big city and towns as well as the “most local” of the eating places in the remotest villages throughout the country. It is highly priced and widely accepted for festivity. In some rural areas, it is so adored that if is eaten only on Sundays and sometimes on market days.

But unfortunately, the cultivation and production of this highly priced and very important food crop is dwindling consequently, the price has gone beyond the reach of majority of Nigerian’s. In order to stem the decline in the number of farmers participating in rice farming and at the same time increase the production of all staple food crops, the Federal Government introduced a number of agricultural development programmes/project among wish are Operation Feed the Nation (OPN), Green, Revolution National Accelerated Food Production Programmes (NAFPP), Directorate of Food, Roads and Rural Infrastructures (DFRRT) and new Agricultural Development Programme (ADP), River in and Rural Development Authorities (RBRDA) and Nigeria Agricultural co-Operative and Rural Development Bank to mention but a few. Irrespective of these programmes/project and other schemes and improvement in infrastructural facilities, food crop (especially rice) productions have persistently remained below market demand. In the light of the above, conscious and effective efforts will be made to thoroughly examine and study the production as well as the financing of this production processes of rice, the problems and the prospect of rice production in Nigeria a specified study of Owan East Local Government Area Gomezka (2011).

1.2 STATEMENT OF THE PROBLEM

The problem that prompted this research work is the need to investigate the major knowledge attitude and bring to light and understanding after proper research, how the production of rice in Nigeria, Edo State and in the Owan Eastern region is been managed, the problems and the prospective involved. The following significant questions come to mind.

The various sources of finance for rice.

The basic problems faced by the processes of producing rice.

How the climatic, biotic and abiotic factors in Edo State Owan East Local Government Area support the cultivation of rice there.

How rice production in Edo State affects the distribution of rice in the country, Nigeria.

This and with many of others the researcher hopes to examine with a notion to evaluating this unwholesome vices.

1.3 RESEARCH QUESTIONS

For the purpose of the research, the following research questions have been formulated to guide the study.

What are the various source of finance for the cultivation and production of rice?

What are the basic problems associated with producing rice?

Does the climatic, biotic and abiotic factors in Edo State supports the cultivation of rice there?

Does the production of rice in Edo State, especially in Owan East L.G.A affects the distribution of rice in the country, Nigeria?

1.4 PURPOSE OF THE STUDY

The purpose of this research work include;

Examine the knowledge and attitude involved with the financing of rice production in Edo State, Owan East L.G.A.

Identify the problems involved with the production of rice.

Highlight the prospects of rice production.

1.5 SIGNIFICANCE OF STUDY

In the world today, rice is one of the most important annual crop. This crop can be cultivated subsistent and both commercially, it can be planted and cultivated by the poor and also the rich, in a small scale of farmland or in a large scale of farmland. This study or research work should be of significance to students in enabling them (students) acquire every necessary knowledge, skills, values and information involved with producing rice.

It will also help already existing cultivators or farmers of rice to improve on their cultivation farmers wanting to endeavour in rice production, this research work will make available all the necessary information for the production of rice. This information will entail the method of cultivation, propagation, processing, planting, harvesting of rice etc.

1.7 DEFINITION OF TERMS

Finance: The management of money and other assets.

Production: The act of making creating.

Integral: Constituting a whole together with other parts or factors.

Infrastructure: An underling base or foundation especially for an organization or system.

Utilized: To use something.

Persistently: Refusing to let go or give up.

Climatic: Relating to or influenced by climate (weather conditions)

Biotic: pertaining to life or living organisms.Abiotic: Non-living, inanimate.

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