Farm profitability and Labour Use Efficiency

Amarender A, Reddy (2013): Farm profitability and Labour Use Efficiency. Forthcoming in: Indian Journal of Dryland Agricultural Research Development (1 December 2013): pp. 1-21.

Abstract

Appropriate choice of cropping systems to local agro-ecology increases profitability and employment. The increased labour shortage and reduced profitability are growing concerns to the farmers. Keeping this, the paper written with the following objectives: i) To assess the profitability among different cropping systems in the semi-arid tropics; ii) To assess the labour use pattern among different cropping systems and farm size; iii) To determine the resource use efficiency of the different cropping systems in the SAT India; and finally iv) To assess the influence of regional/local factors on incomes of farmers in the SAT India. The study used plot wise data collected from 16 villages from India for the crop year 2010. And it also estimated the resource use efficiency especially labour across different farm size groups in the SAT India and finally to assess the influence of regional/local factors on profitability of farmers. The study shows that input intensive cropping systems like cotton, paddy, wheat, fruits and vegetables based cropping systems are more profitable across many of the SAT villages compared to coarse cereals, pulses and oilseeds based cropping systems. Most of the villages are experiencing the shortage of labour as indicated by higher marginal productivity of labour and increasing trend of mechanisation. Farm size is having positive association with the hired labour use and farm mechanisation, but having negative association with family labour. Female employment has inverted “U” shape relation with farm size. This indicates that the farms with more than five hectares of land are detrimental to women employment as farm mechanization in large farms replaces women labour.

• Item Type: MPRA Paper
• Language: English
• Keywords: Cropping systems, semi-arid tropics, cost-benefit analysis, production function, labour use efficiency
• Subjects: J - Labor and Demographic Economics > J2 - Demand and Supply of Labor; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q15 - Land Ownership and Tenure ; Land Reform ; Land Use ; Irrigation ; Agriculture and Environment

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