Contribution of the newly established Rice Mills on poverty reduction in Kebbi State

Agriculture and agriculture related activities (such as rice milling/processing) were agreed to generate more employment, income and reduce poverty among smallholder farmers. This study therefore examined the role of the newly established rice mills (Labana and Wacot rice mills) on reducing poverty among smallholder farmers in the State. 120 smallholder farmers were selected purposively and interviewed and data were analysed by the use of Descriptive, Gross Margin (GM) and sample t-test analysis. The results obtained showed that Labana and Wacot rice mills have reduced the poverty level of smallholder farmers with 53.3% of the smallholder farmers experiencing very low poverty level after compared to 5.8% before the establishment of the rice mills in the state. The growth margin analysis revealed that the Total Cost of production (TC) incurred by the respondents averaged N 192, 219.49/ha, with an average Total Revenue (TR) of N 316,870.13 gives a Gross Margin (GM) of N 160,419.35, and the paired sampled t-test results showed farmers income has significantly increased as a result of the newly established rice mills and this indicates the rice mills has increased the farmers income which will invariably increase their purchasing power and in turn reduce poverty. This study would assist policy makers to strategize more on up scaling and establishment of rice mills and other crops processing industries to ensure all year-round production of rice and other crops which will in turn increase employment and income of farmers, reduce poverty and improve their standard of living.