ISSN: 0041-3216 (Online), 0041-3216 (Print)
Volume 70 Number 1
A comparative study of the cost and returns of small-scale farmers in the fishery and crop sub-sectors the riverine areas of Rivers State, Nigeria
The primary need for this study was to evaluate the cost and returns associated with small-scale fishing and crop production in the riverine areas of Rivers State, Nigeria. A two-stage random sampling was used to select 200 farmers engaged in the fishery and crop sub-sectors. The budgetary analysis was used to estimate the cost and revenue and hence the profitability of the farmers under study. The results of the analysis indicated that both enterprises were profitable though the farmers overÂ· utilized labour but under-utilized capital. In addition, return to capital was higher in the crop subÂ· sector while return to labour was higher in the fishery sub-sector. To attain economic optimum in the two sub-sectors, it is recommended that small-scale farmers in the area reduce their use of labour input but increase their capital input to the point where the returns to labour and capital are equal to their opportunity costs. Based on the present pattern of resource allocation, it is also recommended that the farmers transfer more of the capital input to the crop sub-sector and more labour to the fishery sub-sector to obtain highest total returns.
Keywords: Small-scale farmers; Cost and returns; Fishery and crop sub-sectors