Risk Management Practices in Rice Production: A Case of Smallholder Farmers of Soba Community in Northern Nigeria

Abstract

Rice production in Nigeria has frequently proven difficult to sustain, despite the significant focus of the Nigerian government on discouraging its importation and encouraging its farming. However, rice production has its own risk, just like any production process. Therefore, the researchers of this study aimed to assess the risk management strategy employed by the farmers in Soba, Kaduna State and stipulate the most appropriate risk management strategy in rice production. The research data for the study were gathered using structured questionnaires that were pre-tested and validated before being administered to a sample of 354 rice production personnel (342 paddy farmers and 12 rice producers). Results of the study showed that rice producers are focused more on cause-oriented risk management practice than effect-oriented risk management practice, with ‘information exchange among rice producers’ as the most favoured risk management practice with a mean value of 4.13, followed by ‘selling/distribution of products to market they understand very well’, and ‘diversification of enterprise’ with mean values of 4.11, and 3.81 respectively under cause-oriented risk management practice. Results of the study suggest that rice producers in Soba, Kaduna State, tend to rely more on cause-oriented risk management practices, such as information exchange and market familiarisation, than on effect-oriented practices. These findings have important implications for policymakers and rice producers alike. They highlight the need for targeted support and training programs to help farmers manage risk and improve their productivity and profitability.