Factors Affecting Profitability of Rice Farming under Rainfed and Supplementally Irrigated Regimes in Malinyi Tanzania

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