The study investigated the profitability of rice production in Aguata Agricultural Zone of Anambra State Nigeria by specifically determining the enterprise profitability; ascertaining the determinants of maximum variable profit; and identifying constraints to rice production. Multistage, purposive and random sampling techniques were used to select 90 rice farmers for the study. Structured questionnaire were used in collecting primary data while means, percentages, enterprise budgeting and profit function regression were employed in data analysis. A gross margin of N4,278,961, net farm income of N3,858,516, mean net farm income of N42,872,40 and net return on investment of 0.37 proved the enterprise profitable. Maximum variable profit was statistically and significantly influenced by per unit price of output, per unit price of labour and farm size at 5% level. High cost of labour and lack of capital were identified as the most serious constraints to rice production. Ensuring easy access to credit facilities for the farmers, supply of modern rice production technologies and inputs at subsidized rates through the provision of improved extension services would mitigate the problems and enhance the farmers’ productivity and income.
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