Abstract
Smallholder rice farmers especially in the southern parts of Nigeria are still depending on traditional farming techniques. These crude techniques often led to lack of profit, inefficiencies, low productivity and food insecurity. Rice is a staple food that is of high demand by many Nigerian households. However, its current demand outstrips local production. This study estimated the profitability of small-scale swamp rice production by farmers in Ini Local Government Area, Akwa Ibom State, Nigeria. Data were obtained from 120 swamp rice farmers through structured questionnaires and analyzed with descriptive statistics and budgetary techniques. The results showed that the rice farmers were predominantly male (64.2%), and married (84.2%) with a mean age of 44.91 years. The average years of formal schooling was 11.71 years, and a mean farm size of 0.71 ha. Most farmers rely on personal savings for capital, with limited access to institutional loans. The total annual costs of rice production per hectare were ₦680,850, with total revenue of ₦1,036,800.00, yielding a net profit of ₦355,950. The profit margin was 34.33%, and the returns on investment was 52.28%, suggesting moderate profitability with growth potential. High labour costs (x̅ = 3.23), climate variability (x̅ = 3.23), lack of market information (x̅ = 3.23), inadequate storage facilities (x̅ = 3.22), and high processing costs (x̅ = 3.14) were adjudged major constraints to swamp rice production by farmers in the study area. Limited access to agricultural credit and land tenure issues further exacerbate production inefficiencies. The study concludes that while swamp rice farming is profitable in the study area, although substantial inefficiencies persist due to socioeconomic constraints; strengthening extension services and market access will be crucial in optimizing rice profitability.