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Farm Size and Output Research

1. 0 Introduction

The relationship between your size of Plantation in hectares and the production in Produce/hectares is hotly debated issues in Indian agriculture economics. This problem was first elevated by AK Sen in 1960s with respect to Indian economy. The major purpose of this paper would be to analyze the relationship and the major factors influencing this romance along with its implication. The size of holding depends on certain factors and the production also depends upon certain monetary factors. These factors such as irrigation, fertility, labor and capital suggestions have an effect on the relationship between the size of land positioning and productivity. A lot of the economist like AK Sen and Saini have done their evaluation and considered this romance to be inverse. Countries like USA and Australia have very large holdings and the partnership between size of plantation and productivity is not inverse in such cases. The use of Green trend has been believed to change the inverse romance to a directly proportional relationship, but nonetheless it's been not so clear. Some research has been done in the newspaper related to aggregated data in regards to to present status of this marriage by assessing the factors of productivity with how big is holding. Moreover the common size of holding has been lowering with time due to increase in population and some other factors. At the same time the government has tried out to implement guidelines like land ceiling and loan consolidation of land in some relatively developed state governments to solve the situation of exceedingly large holdings (in Indian average) and small and fragmented land respectively.

2. 0 Plantation land Holdings, Efficiency and the factors influencing them independently

Agricultural holding suggests the common size of agricultural land placed by the farmers in India. . An monetary family land keeping can be explained as one that could provide a realistic quality lifestyle to the cultivator and present full occupation for a family group of a standard size. There are five types of farmers in India regarding to their holdings. A)Marginal farmers (‰1 hectare), b)Small farmer (one to two 2 hecteres), c)Semi medium farmers (2 to 4 hectors), d) Medium farmers (4 to 10 hectores), e) Large farmers (>10 hectors). How big is holding would essentially depend on approach to cultivation and character of the crop.

Productivity here refers to the productivity of crop result so productivity in agriculture is measured as the productivity of the crop per device area. Its device is produce/hectares. At a national level the demand for agricultural product could keep rising scheduled to increasing people of India and high GDP progress rate therefore the way to obtain agricultural products must match the increasing demand to keep carefully the prices reasonable. Hence agricultural plantation land production becomes an important parameter for the current economic climate. India being truly a huge country, these factors vary a great deal from region to region but unnatural means can be used to improve the factors of fertility and irrigation. The list following gives us the factors of productivity

Fertility of land - Natural fertility cannot be changed but insight of fertilizers, plantation lawn manure and nutrients can increase the fertility but each one of these will increase the cost.

Irrigation service - Any irrigation task requires heavy investment and it is determined by the level of underground water and nearest way to obtain fresh water source.

Labor resource and quality of labor - Labor supply will depend on the presence of other scope of employment and quality will depend on traditional work culture and climatic conditions and both factors vary a lot in India.

Climatic condition - Floods and drought scheduled to unpredictable dynamics of monsoon have an effect on the efficiency.

Since previous three ages economists have been debating over issue of relationship between your size of farms and agricultural efficiency in India. The debate was initiated by Prof. Amartya Sen in 1962. According to him with upsurge in size of plantation holding, productivity declines and thus the productivity is more on small farms as compared to large farms. India has a labor surplus overall economy. The opportunity cost of labor is low. Small farms use much of family labor to the amount that marginal output of labor strategies zero. In case there is small farms, outcome per acre is maximized while in the circumstance of large farms using chosen labor, outcome per unit of labor is maximized. The depth of cultivation in case of small plantation is higher than that of the top farm. Moreover, heavy source of labor on small plantation is not on one crop only however in two or more crops produced in the same parcel throughout a given production 12 months. It is more so in case of irrigated land. Self-employment in the family farm equalizes the ability cost which is not not the same as market wage. Statistical validity of the inverse relationship between plantation size and efficiency is a confirmed happening in Indian agriculture prior to Green Trend. Green revolution is a capital extensive programme which was implemented in 1960s for growth of agricultural production. This capital was invested in the proper execution of critical indicators of production like irrigation, fertilizer, Mechanization, Manure, pesticides, nutrients. The objective of the following research would be to determine all the factors like irrigation, fertilizers, Farm Backyard Manure and nutrients vary with how big is farm for today's set of data

3. 0 Aggregated data analysis

For all the graphs below in X-axis, 1 = Marginal holding, 2 = Small Positioning, 3 = Semi-Medium having, 4 = Medium Positioning, 5 = Large having.

In Y-axis, graph A), B), C), E), F) are worth of ratio and D) is ratio value.

The calculations of these ratio value from been brought up in furniture in appendix

Graph A) and B) have been extracted from stand 1. C), D), F) from table 2

As per the graph A) above we can find that the marginal positioning has the greater area of plantation wholly irrigated about 46% and we can also observe that the percentage of the wholly irrigated land lessens with upsurge in the size of the positioning with large holdings exhibiting the lowest ratio of wholly irrigated area that is about 21%.

The second graph B) shows us the percentage of area of different size of positioning for wholly unirrigated plantation land and it show us, a great deal of gap between the marginal holding(44%) and large holdings(55%) in terms of ratio change.

As detected from the graph C) the use of fertilizers decreases with the upsurge in how big is having with the marginal possessing having an area of 77% and large holdings having a location of 52% under the application of fertilizers.

The graph D) related to nutrients will not show us the % of area but it shows us the number to area ratio. In this case the slope of the graph is steeper and it shows us pattern that the consumption of nutrients reduces with the increase in how big is possessing. The marginal holding has a ratio of 126 and the top positioning has a proportion of 56.

In case of farm backyard manure graph E) there's a slight increase in the percentage software from marginal having to small positioning but after that the fall remains. Here the small holdings has the highest percentage of program that is 34% and the large holding gets the lowest percentage that is 18%.

Application of pesticides in a in farmland is an important preventive solution to avoid pests. The graph F) will not show a poor trend completely with regards to percentage of area with relation to holding size but the large plantation land shows a drop in 4%.

The data above is made for 2001 agriculture census which is the latest. In post inexperienced revolution period the application additional inputs i. e. factors of creation like irrigation, fertilizers, farm yard manure, nutrition, pesticides shows that their intensities of application is inversely proportional to size of land. (As examined above with various data and corresponding graphs. ). In other words the use of additional factors of development is more in case of small farms in comparison to large farms. The resultant result which is immediately proportional to software of insight to an acceptable amount must increase produce proportionately. Thus logically it uses that after green trend also the inverse romance between size of plantation and production should hold good. It isn't a direct cause and impact romantic relationship between all the factors of efficiency and farm size but there might be some typically common factors that will be affecting these romance. On the other hand there can be an alternative hypothesis to this, stating large plantation land are in effortlessly fertile and irrigated parts of this country so they don't need unnatural irrigation or fertilizers to enhance their efficiency. Therefore a direct inverse relationship can't be established between Farm size and efficiency by only using aggregated data related to factors of productivity. If we take notice of the distribution of various size of positioning throughout India in desk 3 of appendix greater and medium size holdings are typically within bigger states like Madhya Pradesh, Andhra Pradesh and Maharashtra which are not densely filled but have a larger area. A lot more densely populated says like West Bengal and Kerala have more quantity of marginal and small holdings. The natural factors of efficiency are allocated among these areas so the main hypothesis cannot be rejected. The alternative hypothesis can be true in a few regions however, not true all over the place because the various sizes of keeping have been distributed as per density of human population and not according to natural factors of creation. Although it can be said that inverse relationship between efficiency and farms size is present in some regions of India but it isn't a general legislations for the whole country.

4. 0 Technique for studying disaggregated data

The research above shows us the examination done for aggregated data but this same analysis can be done using disaggregated sample data extracted from various villages. In case the test data is extracted from nearby villages then your conditions like Fertility, Irrigation, climatic condition and labor can be assumed to be constant.

Y1, Y2, Y3, ---------Y100 could possibly be the data arranged for production in produces/hectares

X1, X2, X3, ---------X100 can be the data place for size of keeping hectares

The data above can only just be obtained by performing a doing a immediate survey in a specific area having common factors of production. Then we can do a regression research for the dataset having Y = Productivity and X = Size of farm land. The partnership thus obtained either positive or negative can be used to discover the partnership between output and size of farm for a specific area at a micro level. Which method can be used in various areas of the united states having same factors of production. And the tendencies can be viewed whether its positive or negative or has no affect. This sort of examination using disaggregated data can be done by also taking the same crop.

5. 0 Labor as a factor

As reviewed before labor insight can be an important requirements for better output in farm land and becomes more important if the procedure in more manual. In Indian agriculture the Farm land labor can be divided into two type, relative staff and the other is employed workers. Generally in case there is smaller size of possessing the family members are mostly mixed up in cultivation process and in bigger farms it is a mix of both. In case of a marginal and small keeping where in most of the circumstances only the members of the family get excited about plantation cultivation the marginal efficiency is not a factor. If required all the family members can be engaged in the agriculture production process because the situation is more desperate and as effect the intensity of cultivation is also more. Who owns smaller plantation land doesn't have to employee employed peasants but in case of greater farms the problem changes. In case of larger farm land the owner has to take the marginal output of hired labor under consideration. As the strength of cultivation for the small farm is more, the use of fertilizers, farm garden manure and nutrients might be afflicted according to the aggregated data examination done before. As the tiny plantation owner is more needy even he can use manual means of irrigation to irrigate his land and its own not possible in large farms due to its large size. It can be argued that the large farm owner would have more usage of mechanized methods and capital for investment so his production can be higher at least after inexperienced revolution. Here the challenge looks similar to management of farm input resources alternatively than their availability. The better management of resources for small farm owner with an increase of rigorous cultivation has a larger impact on efficiency than the impact of advantage the large plantation owner has in terms of more mechanization and capital availableness. But the characteristics of land size holdings that is decrease in the average size of keeping as time passes.

Even the relationship between irrigation and fertilizers is also very direct. If one wants for apply more fertilizers then the irrigation facilities have to be very good in order per the irrigation data and fertilizers data both seem to follow the same structure even if we consider labor not be a major factor here. That is clearly obvious in Table 2 where more fertilizers are always applied when irrigation is high.

6. 0 Changing design of Size of Plantation land holding with time

The tables 4 and 5 in appendix shows us the circulation of holdings in various expresses of India but there is certainly one more key elements to this evaluation this is the average size of holdings have been reducing with time. The number of marginal holdings and small holdings have increased and the also area under marginal holdings and small holdings have increased. At the same time the number of Medium and Large holdings have reduced and also offers the region under them reduced. You can find two major reason for such a development, they are as follows

Increasing populace - With all the rapid increase in population the same portion of cultivable land gets divided among more people. Because of this how big is the holdings is lowering and area under marginal and small farms increase. To control the development of rural human population is even tougher in rural India scheduled to lack of awareness of folks anticipated to limited education.

Law of inheritance - Under Hindu as well as Muslim Law of inheritance the landed property of an person should be evenly divided among all his sons and daughters which has led to increasingly more section of land and therefore increase in marginal and small farms. Even if the land size is large now, it will get sub-divided when it goes to the next technology.

Decline in the joint family system - Previously lot of individuals used to be joint individuals but this has declined over time and folks generally prefer to stay with only one families. As a result the plantation land is also divided more.

Slow development in handicraft industry - Inside the villages the handicraft industry used to a source of work for the town labor. But it has not harvested sustainably with increase in rural labor therefore the rural population experienced to hinge more on agriculture as a source of employment.

7. 0 Problems related to subdivision of land holdings

If the fragmentation and subdivision of land remains at this rate then average size of the holdings can be even smaller and there will be more marginal holdings. Program of new technology becomes more difficult. A whole lot of cultivable land will be lost to make boundaries. You can argue that as in case of India the efficiency of plantation land could be more scheduled to more intense cultivation. But the per capita income of the owning category of the farm reduces with minimal farm land. Furthermore if the whole family is involved to raise the strength of cultivation the labor might be under employed for the same go back. In the event the labor is adaptable then he is able to move to a greater farm as peasant if there is a demand. As seen from the statics the amount of large holdings is lowering in the country and therefore is the job opportunity for hired peasants. Another factor which restricts the labor versatility is when labor will try to move from one region to another language is a major hurdle. Although Hindi is India's countrywide language and English is the official one still whole lot of rural people speaks only the local languages and to be more specific only the neighborhood dialect. Skill becomes a barrier when the labor desires to go to industry in urban sector.

As per our evaluation till now the inverse relationship between the production and size of plantation does hold good at least in some areas of the united states if not throughout the country. At the same time if the plantation land gets more divided and sub-divided the holding no more remains economical for an individual family. The perfect holding size needs to be somewhere between small and large holdings of around 4-5 hectares. The farm size are large and they're well maintained and supervised by using modern strategy like it is performed in USA and Australia they achieve high productivity. But the same thing is challenging to achieve in India as talked about beforehand. The government has introduce land ceiling in some developed states. This means that family owning exceedingly large farm land have to give up their abnormal land to general population authorities and it will be allocated among people having uneconomic holdings. This process is not very easy because if the land is fertile than nothing of the getting families would like to quit their land and possess to take into account their future generations. Furthermore any type of ceiling will not in favor of the market makes of demand and supply and affect the prices of land. When we talk about division and fragmentation then oftentimes the farm land of an individual owner is scattered throughout the community. In that case all the land in the village can be changed into a compact stop and then the same land can be proportionately allocated among all the families to create consolidation of Farm land. In states like Punjab, Haryana and Madhya Pradesh this process has been adopted seriously however in some other states like Assam and Western world Bengal the process hasn't even started. There are few known reasons for which consolidation process is challenging. People in India will be more attached to their piece of land, if someone has a much better parcel he would not like to sacrifice them. Both land ceiling and loan consolidation of plantation land are procedures to reach that ideal size of having but they havent been easily to implement for the factors as mentioned before.

8. 0 Final remark

The inverse romantic relationship between size of having and production was regarded as quite strong when it came for the first time under observation of AK Sen. But after the green trend this relationship must have change to a straight proportional one according to expectation. This might be happening in some regions of India but nonetheless there are areas where in fact the inverse marriage between size of farm and efficiency still exists. According to the aggregated data analysis the factors of efficiency are being affected by some typically common factors which helps to maintain the inverse relationship between output and size of farm in a few areas. As mentioned before these common factors are intensity of labor and problems of management and guidance in large farms. At the same time how big is the land holding have been lowering which is resulting in more uneconomic holdings for small plantation owners. At this time the federal government should apply the insurance plan of land ceiling and consolidation of holdings judiciously to be able to boost the quantity of semi-medium and medium size positioning where optimal output can be achieved along with economic holding. In permanent loan consolidation of holdings and cooperative farming should be inspired in an structured way. The correct management of labor and also other factors of productivity and utilization of mechanized technology in large farms would go a long way to improve efficiency in much larger consolidated farms. This might be made easier if minimal population would depend on agriculture only if more occupations are created in other industries and the rural populace updates to new skill requirements of the market.

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