EFFECT OF GOVERNMENT SUBSIDIES ON RICE PRODUCTION IN OGBESE, AKURE NORTH LOCAL GOVERNMENT AREA OF ONDO STATE NIGERIA.

Abstract

The study investigated the effect of Government subsidies on rice production in Ogbese Akure North Local government area of Ondo state. Data for the study were collected using structured questionnaire administered to 100 respondents who were randomly selected. Data collected were analyzed using
descriptive statistics, Cross margin analysis and multiple regression analysis. Results showed that both married men and women were involved in rice production in the study area, even though males dominated Most (52%) of them were still in their productive age range of 31-40 years; and also have one form of education or the other. Furthermore, (44.30%) of the respondents had 6-10years of experience in rice production.The coefficients for fertilizer, herbicides, farm implements and grants were all positive and highly significant at 1% level of probability. The costs and returns analysis revealed that rice production is a very rewarding and profitable enterprise in the area, if well managed. The major problems and challenges confronting them and which have been identified include; Poor access to credit/funds, Poor infrastructural facilities, inadequate processing facilities, Poor and
inadequate storage facilities, lack of improved rice varieties, shortage and high cost of labor; among others. It is therefore, recommended that all these constraints limiting the respondents from achieving their vision and mission in rice production be addressed by the Government and the relative agencies in power so as to encourage them to increase their rice production potentials and capabilities.