In order to help local farmers i~llproveon their rice
production technique amongst other objectives, Adarice project adopted the
participating farmers’ scheme. Currently, the farmers engaged in rice production
have reduced in number from one thousand in 1988 to three hundred and fourteen
in 1998 rainy season with a lot of empty, uncultivated fieldswasting away.
Consequently, the study analysed the financial structure and also ascertained
the.profitability of the enterprise in order to determine whether they are the
causes of the farmers’ withdrawal from further producrion or not. Broadly, the
study was an analysis of the financial structure and profitability o f rice
enterprise of Adarice project participating farmers in Enugu State, Nigeria.
The spxil’ic objectives of the study were to describe the socio-economic
characteristics of the participating farmers; analyse the financial structure
of the participating farmers’ rice production enterprise; ascertain the
profitability of the enterprise during the pre-harvest and post-harvest
periods; describe the management problems from the view points of the prqiect’s
officials aid the participating farmers; and prof+r recommendations based on
the study’s findings.
The study area was Adarice pruiecr i n UZO – ~wani Local
Government Arrd of Enugu State. The data required for the objectives (i ) and
(iv) were obtained by using two sets of structured questionnaire acln~inistered
on both the project officials and the participating farmers. For objectives
(ii) ; ~ n t l(iii). the data for the period of study and which are time-series
were collected from 111the financial records of the participating farmers.
Data on objectives (i) and (iv) were annlysed using
descriptive statistics. Data on objective
(ii) were analysed using financial state ments while data
for objective (iii) were analysed using Net Profit Margin (NPM)
tecl~~lique,Analysis of Variance and Student’s t-distribution.
The results showed that most ol the participating farmers
were males (82%) and were married (67 %). The productioli enterprise was
tedious and exhausted time, energy,finance and other resources from the
farmers. They showed also that most of the farmers had First School Leaving
Certificate (FSLC) (47%)and West African School Certificate
(WASC)/Teachers’ Grade 11 certificate (‘1’CII) (33%)and were
able to keep good records. The Balance Sheet Results showed that 11)efarmers
had no intermediate and fixed assets and medium – and long-term liabilities of
their own. They relied on the project for the fixed and intermediate assets
like land, maclii~icr yand equipment , irrigation and storage facilities as
well as on external labour. They oper,~~ccI only current assets and currelit
liabilities. The current assets and current liabilities incrm+xI over the years
in the period covered by the study for the cultivation of the same plot of
land. The Net Profit Margin (NPM) technique results also showed a reducing
trend olmined progressively over time within the period covered by the study.
The results from the Analysis of Variance and t- distribution showed that there
is a significant difference between the profitability of the enterprise during
the pre-harvest and post-harvest periods. Data generated also indicated that
the project’s management had the problems of in eficilwr personnel ;in<!
funds anlongst others as viewed.
All Project Materials Inc. (2020). AN ANALYSIS OF THE FINANCIAL STRUCTURE AND,PROFITABILITY’OF RICE ENTERPRISE: THE CASE OF ADARICE PROJECT PARTICIPATING FARMERS IN ENUGU STATE, NIGERIA. Available at: https://allprojectmaterials.com/department/paper-8319.html. [Accessed: ].