Study on potentials of farm income in Punjab

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Date
2011
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Punjab Agricultural University, Ludhiana
Abstract
The study was undertaken with a view to identify the potentials of increasing farm income in Punjab. The study was conducted in all the three agro-climatic zones of Punjab to make it representative for the state. The primary data were collected from a sample of 300 farmers pertaining to the agricultural year 2008-09. The techniques of multiple regression analysis and linear programming were used to analyze the data. The production function analysis revealed that human labour employed, availability of irrigation machinery and farm size were the most important determinants of the gross value of produce from crop production. Whereas, in the case of dairy farming quantity of concentrates fed and expenditure on veterinary care emerged as important determinants of the gross value of milk produced. The technical efficiency of the farms of Central Plain Zone (Zone-II) was the highest followed by South-western Zone (Zone-III) and Sub-mountainous Zone (Zone-I). This can be attributed to favourable soil, water and climatic conditions and better access to research and extension agencies in Zone-II. The improved plans developed at two levels of technology increased the returns to fixed farm resources ranging from 2.19 to 3.86 per cent in Improved Plan-I and 13.95 to 17.06 per cent in Improved Plan-II on farms of different size categories in the state. The findings of the study revealed that by developing irrigation facilities, providing training for vegetable cultivation and short term credit facilities will help in increasing farm income especially in Sub-mountainous Zone. The development of short duration varieties of oilseeds and pulses which can easily fit in the paddy-wheat rotation will also help in increasing the income of farmers. The rational use of inputs like fertilizers and insecticides-pesticides helps in decreasing variable cost and ultimately increases the farm income. To make the agricultural system competitive and to increase the income of farmers, efforts should be made by all the interest groups involved in the farm sector.
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