Economic viability and resource use efficiency of tenant farming in Punjab
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Date
2019
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Punjab Agricultural University, Ludhiana
Abstract
The present study has been designed to review the dynamics of tenant farming/reforms, to study the fiscal viability and input use productivity of major crops of the state for the tenant as well as the owner farmers. The study has been based on the primary data collected from 180 farmers (120 tenants and 60 owners), spread over all the major agro-climatic zones of Punjab pertaining to the crop year 2017-18. The study highlighted that the operational cost of major growing crops namely paddy, wheat, cotton and sugarcane cultivation per hectare was observed slightly lower for tenant farmers in comparison to owner farmers. Total cost of cultivation (C2) was also found relatively lower in case of tenant farmers as compared to owner farmers. The returns over variable cost were found to be comparatively higher for tenant farms in relation to owner farms. The returns over variable cost were estimated `92169, `69929, `84424 and `200081 from paddy, wheat, cotton and sugarcane on tenant farms as compared to `89673, `68700, `82916 and `187784 on the owner farms respectively. The regression analysis brought out relatively efficient input use productivity on tenant farms especially in terms of micro nutrients and other chemical fertilizers. Expensive farm machinery, ineffective government policies and inadequate timely financial assistance from banks were found as major constraints confronted by the tenant farmers in the state.
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