Profitability analysis of rice farming in Buseta sub county Kibuku district

Abstract

This study aimed to assess the profitability of rice farming in Buseta Sub-County, Kibuku District. A multistage sampling technique was employed to collect cross-sectional data from the area. A total of 105 rice farmers were interviewed using a combination of structured and semi structured questionnaires. The independent variables examined included various socio-economic factors of the farmers, such as gender, age, marital status, family size, educational level, and years of farming experience, primary occupation, and land size in acres. Profitability was the dependent variable, assessed using the gross profit margin, calculated as: GP = TR – TVC. The findings revealed that most rice farmers (67.6%) were male, while (32.4%) were female, indicating the involvement of both genders in rice farming, which contributes to local development. Additionally, (78.1%) of farmers were married, (17.1%) were single, and (4.8%) were divorced, suggesting that the labor-intensive nature of rice farming might influence the high marriage rate among farmers. In terms of educational background, (10.5%) of farmers had no formal education, (25.7%) completed primary education, (41.9%) attained secondary education, and (21.9%) achieved tertiary education. This suggests that secondary education may not provide sufficient alternative employment opportunities, leading many individuals to engage in rice farming for income. The average age of respondents was 40.91 years, ranging from 18 to 80, with a standard deviation of 16.29 years. The average family size was 11.91 members, with a minimum of 2, a maximum of 42, and a standard deviation of 8.50 members. On average, gross profit (Revenue – Total Variable Costs) per acre was 617,641.23 UGX, indicating that each acre yields this profit amount after accounting for variable costs such as seeds and labor. Keywords: Rice, Profitability, Gross Profit