1Department of Agricultural Education. Adamu Augi College of Education Argungu, Kebbi State
2Department of Agricultural Economics and Extension. Kebbi State University of Science and Technology Aliero, Kebbi State, Nigeria
3Department of Crop Science. Kebbi State University of Science and Technology Aliero Kebbi State, Nigeria
This study was conducted in kebbi state north western Nigeria, to analysed the cost and economic returns in rice production among microfinance banks loan beneficiaries in the state. Data for this study were collected through primary and secondary sources. Yamane’s formula was used to determine the sample size. A multi stage sampling techniques was employed and simple random sampling was used to select the respondents for the study. Demographic variables explored revealed that majority (83.8%) of the small holder rice farmers were males with mean age of (41.71%) years and most (47.7%) having secondary education. Average cost and returns in rice production shows that total variable cost accounted for (78.39%) of the cost of production while total fixed cost accounted for only ( 5.48%). Benefit cost ratio was (2.77), while operating ratio was (0.28) which shows high profitability. It was concluded that microfinance banks loan has encouraged the small holder rice farmers to increase their production. Finally a called was made for the need to increase availability of accessibility to financial services for the farmers..