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An investigation into the relative income on different sized farm holdings in Punjab
An investigation into the relative income on different sized farm holdings in Punjab
By: Mandeep k Pujara
Indian agriculture has witnessed significant changes in production and technology, the introduction and spread of high yielding varieties of crops and intensive application of complimentry modern inputs in farming ,The saga of agricultural development in India.since the advent of independence is an inspiring one.
The Indian agriculture has been witnessing a continous transformation
The process of transformation of agriculture from traditional to modern state( popularly known as green revolution) has brought considerable increase in production ,income generation on various categories of farmers.
The present study attempts to analyze the relative income on different sized farm holdings in Punjab District Amritsar in order to see as to what is the per acre gross and net income of the various categories of the different sized holdings. This sort of comparison of the income of the different sized holdings will also enable us to see as to which category of the farmers have been benefited more from the new technology in terms of income from agriculture.
In this study Amritsar district was selected for study to the relative income distribution of the farmers .agriculture income has abruptly changed with the introduction of high yielding varieties ,better seeds and technology. but the income has not been distributed equally among all the groups of the farmers. Present study has been undertaken to reveal the relative income differences sized farm holdings. The specific objectives of the study were:
- To examine the relative income on the different sized farm holdings.
- To account for the differences in the relative income of different farmers.
- To evaluate the effects of various factors on income.
The operational area of the study was Amritsar district . three blocks were selected randomly, these were Jandiala,Ajnala and Valtoha.at the second stage four villages from each selected blocks were selected randomly.
Three size groups so obtained were
Small group - below 5 acers,
medium group - ranged from 5-15 and
large group - above 15 acres.
An appropriate schedule was prepared to collect the relevant information from these selected holdings regarding operational holdings ,area sown under different crops with acreage and total production, with total receipts from crop selling and vegetable selling, permanent labor , causal labor, source of irrigation ,farm machinery, fertilizers used and fixed costs. information was collected by personally interviewing the 200 farmers. Total receipts fro farm have been calculated by multiplying total land with total production and price. The price of wheat and rice has been fixed by the government as MSP.. The price of crops such as fodder, sugarcane, potato and peas have been noted as received by farmers.
The average operational holdings for small, medium,and large size sampled farms were 3.78,10.03,27.7 acres respectively in Jandiala block3.81,10.76 and 24.45 acres respectively in ajnalsa block and 3.84,9.72 and 33.86 acres respectively in valtoha block.
The average cropping pattern for different sized groups of farms in three blocks were examined . paddy during khariff season and wheat during rabi season occupied the maximum area in all the three blocks.
The existing farm plan of block-1 jandiala revealed that paddy and wheat were the dominating crops which covered 59.60 and 57.88 percent area respectively on small farms. Similar was the case with medium and large farms where 79.02 and 90.25 percent areas were
Covered by paddy in khariff season and 54.75 and 39.90 per cent areas by wheat in rabi season respectively. Potato was sown on medium and large farms which covered 2.99 and 19.57 per cent area respectively. Another trend that emerged from the analysis was that farmers growing potato ,peas etc. had much more income than those cultivating traditional rice ,wheat cropping pattern.
The existing cropping pattern of ajnala block showed that the maximum area under wheat and paddy was 61.70,76.87,86.25 percent in case of wheat and 56.74,54.74,76.02 per cent in case of paddy on small. medium and large farms respectively. The land use intensity was 199.35,200.23, and 200 percent on small ,medium and large farms respectively.
In case of valtoha block, paddy and wheat were the dominating crops which covered 73.54 and 81.44 per cent area respectively on small farms. similar was the case with medium and large farms where 73.93 and 74.40 per cent areas were covered by paddy in khariff season and 83.21 and 90.44 per cent areas by wheat in rabi season respectively. The land utilization wsa not so high. The cropping intensity was 199.35,200 and 200 per cent on small, medium and large farms respectively.
The returns to fixed farm resources was Rs. 17241, Rs. 26147 and Rs. 27096 per acre on small, medium and large farms respectively of block 1 jandiala. The total net returns ( net income) were calculated at Rs. 23410, Rs. 23612 and Rs. 24420 per acre on small, medium and large farms respectively of block 2 ajnala. The net income from block 3 valtoha was Rs.17310, Rs. 17734 and Rs. 17893 per acre on small, medium and large farms respectively indicating higher net return on large farms in all three blocks .
Lorenz curve was fitted to the net income of different sized holdings of all the blocks. Percentage were calculated for the various cumulated values. these percentage were then plotted on the graph .the graph clearly indicates he income was not proportionately distributed among the different categories of the farmers. It showed that, as the farm size increased income increased more than proportionately. This sufficiently established that after the setting of green revolution the income gap between the small and large farms had widened.
In all blocks of the sample ,the gross income obtained during the rabi season was more than during khariff season. this is due to the fact that the gross income obtained per acre in khariff were Rs.11125,11292,11630 and rabi Rs. 15587,19372,19549 on small ,medium and large farms respectively. The total cost per acre on the different farms were Rs. 7392,8166,7042 resulting into net income of Rs. 19320,22497 and 23036 on different size of holdings of small, medium and large . it was clear from this that per acre net income obtained by the farmers increased with he increase in the size of holdings.
Calculation of gross income, costs and net income of small, medium and large farms showed that the total gross income per farm was Rs. 101128, 317726,877354 and total cost per farm was Rs.27976,83548,226236 there by giving a net income of Rs. 73152,230177,651118 respectively thereby confirming positive relationship between net income and farm size and thereby indicating that the gains of new technology were in favor of big farmers.
The contribution of farm size ,fertilizers and manures and highest to income of different sized farms. The machinery and implements, seeds and plant protection measures , affected at varying level of significance the farm income of different sized categories of farmers of three blocks.
In block 1 jandiala ,the small farmers income was mainly explained bu farm size, human labor, expenditure on seeds, fertilizers and manured and plant protection with income elasticity's at 0.4413,-0.1126,0.0913,0.2125,0.0127 showing significance at 5 per cent level.
In case of medium of farmers, their major share in gross incoime was significantly dependent on the variables of farm size ,expenditure on seeds, fertilizers and manures farm implements and machinery and plant protection with their respective income coefficients at 0.4580,0.0814,0.2107,0.2511 and 0.0133 . all other factors showed insignificant contribution to farm income of this group of farmers . the farm income of large farmers was highly explained by farm size with income elasticity at 0.4813.
In block -11 ajnala ,the farm income of small, medium and large farmers was highly explained by the farm size with income elasticity at 0….3813,0.4123 and 0.4214 respectively.
The sum of elasticity's in block 3 valtoha was 0.9267,1.1889 and 1.1798 on small medium and large farms respectively.
It was concluded that return to scale for small farms were although decrease but not significantly less than one. the return to scale on medium and large farms were increasing but significantly different from one. Thus the return to scale for all categories of farmers in study area were found to be constant.
Thus it was seen that farm size played a major role to create polarization of farm income in the study area . other factors which contributed to farm income were labor, seeds, fertilizers and manures, farm machinery and plant protection.
About the Author
Mandeep is a Agribusiness management consultant.He has vast experience in agribusiness area throughput globe.He is a youth leader for sustaianle development and represented nationaly and internationaly many times. Member of many International organisations Rotary youth, 350.org,GYC,IYC, for social causes and has deep concern for impacts of climate changes on Agriculture globly.Presently working for this cause under the banner www.agrination.org. He has executed many projects to promote INM and IPM prog. in diffferent Indian states .He is also a Frequent speaker on Radio and TV on these issues.
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