Factors affecting profitability of rice farming under rainfed and supplementally irrigated regimes in Malinyi Tanzania
Loading...
Date
2022
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
The College of Economics and Business Studies, Sokoine University of Agriculture
Abstract
Using a double log model, this paper shows the percentage change in farmer Gross Profits
(GPs) due to percentage change in independent variables. It therefore captures the
magnitude of the impact that coefficient estimates have on GP. Farmer GPs were regressed
against farm size, extension services, and agricultural credits, mode of grain storage, final
output, and irrigation regime. Findings from the regression analysis show that extension
services, grain storage, final output, and irrigation regimes were significant at 0.005 level of
significance. With a p-value of 0.000, irrigation regime had the most influence on gross
profit, whereby having access to irrigation water increased profit by 40.17%, ceteris paribus.
At 0.005 level of significance, extension services, grain storage and final output had p-
values of 0.001, 0.001, and 0.000 respectively and are positively influencing profit by
16.35%, 16.02%, and 29.13% respectively. We recommend communal-based Irrigation
agriculture as a holistic approach in the minimization of weather-related risks. More
education is needed on proper grain storage to ensure rice quality which is a huge
determinant of price and profit.
Description
Eastern and Southern Africa Journal of agricultural Economics & Development Vol. 12 No. 2 (2022)
Keywords
Rice farming, Gross profit, Double log model, Irrigation regimes