Exploring the relationship between farm size and productivity: evidence from Indian farms
Keywords:
Farm size, Productivity, Yield, Agriculture, India.Abstract
The relationship between farm size and productivity is intensely debated in India. The present study aims to understand the association between farm size and productivity using Cost of cultivation Survey plot level data for 2013-14, covering 70% of the total cultivation area. State and crop-specific analyses are carried out to give more disaggregated insights using socio-economic variables and technological changes captured by the crop varieties and soil quality. Descriptive statistics and regression analysis are used to assess the relationship between farm size and productivity in terms of yield and net returns. For crops such as wheat, paddy, maize, rapeseed & mustard, and sugarcane, the large farmers are reaping the profits at par with small farmers. Large farmers have more opportunities to make a profit because they have access to several inputs and infrastructure. However, this scenario puts small farmers disadvantaged due to higher input costs. This weakness can be turned into opportunity by facilitating the formation of more farmers groups. For crops like pulses, coarse cereals, and oilseeds, there is an overwhelming scope for small and marginal farmers to get more yield/returns compared to large farmers due to the inverse relationship observed for arhar, soybean, and bajra. Mixed results are obtained for other crops.References
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