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Profitability of Crop Cultivation Under Different Land Tenurial Arrangements in Some Selected Sites of Bangladesh

M. A. ISLAM
Ph.D Student
Senior Assistant Secretary (OSD), Ministry of Public Administration, Bangladesh Secretariat Dhaka, Bangladesh Presently, Graduate School for International Development and Cooperation, Hiroshima University1-5-1 Kagamiyama, Higashi-Hiroshima, 739-8529 Japan,

K. L. MAHARJAN
Professor
Graduate School for International Development and Cooperation, Hiroshima University1-5-1 Kagamiyama, Higashi- Hiroshima, 739-8529 Japan.

Abstract/ Executive Summary:

Proper land tenurial arrangements perceived as an important strategy for input use and agricultural production in utilization of land resource. Government of Bangladesh initiated due measures in this respect by formulating and declaring the land reform ordinance 1984.The main quest of this study is to identify the profitability of crop cultivation and factors influencing gross revenues in the variousl and tenurial arrangements under this land reform ordinance 1984. In search of this research question, a case study was conducted in two Upazilas (sub districts) of Bangladesh based on cross section data. This data were collected by purposive stratified sampling technique in the year 2013. Benefit cost ratio (BCR) was used to identify the profitability of crop cultivation under different land tenurial arrangements. Ordinary least square (OLS) regression method was used to identify the factors influencing gross revenues of the share cropped land of owner cum tenant farmers. This study reveals that the aspects of land reform ordinance have been implemented in output sharing aspect but not in input cost sharing aspect. Again BCR in leased land was higher than share cropped land. Moreover, regression analysis indicates that farm size had significant positive impact on gross revenues. The study holistically reveals that lease arrangements could be judged as a vital player to increase gross revenue as well as profit inshare cropped lands.

Keywords: Benefit cost ratio, ordinary least square regression method, land tenure, agricultural production, Bangladesh

Location: Basail Upazila of Tangail and Titas Upazila of Comilla

Start Date:

End Date:

Program Area: Socio-economic and Policy

Non-commodity: Adoption of technology

Objectives:

The specific objectives of the study are as follows: To measure the profitability of different patterns of cultivated land by the tenure categories to depict the impact of land ownership under different land tenurial arrangements; To assess the impact of socio-economic variables on the gross revenues of the share cropped land of owner cum tenant farmers.

Methodology:

This study was carried out at Basail Upazila of Tangail district and Titas Upazila of Comilla district in Bangladesh. The area of Basail Upazila was 158 sq.km and population was 76,002, and the area of Titas Upazila was 107.19 sq.km and population was 183,425 (DAE, 2013). Lease form was practiced in Titas Upazila only (Source: Field Survey, 2013). 300 respondents were taken 100 from each category and 50 respondents from each Upazila. Data were collected from January to March 2013 by purposive stratified sampling technique to trace out the proper impact of profitability of crop cultivation and factors influencing gross revenues under various land tenurial arrangements on agricultural production based on the cultivated crops in a cropping year. The major cultivated crops in the study areas were rice, wheat, mustard, jute, and pulses, normally three crops were cultivated in each plot of land among these crops in a year. The cultivated crops produced by the respondent farmers The purposive stratified sampling technique was needed as the percentages of owner, owner cum tenant, and tenant farmers were very disproportionate in the study areas Moreover, farm size was classified to five categories in Bangladesh. These categories were (a) marginal farm: farm size up to 0.19ha, (b) marginally small farm: 0.20- 0.60ha, (c) small farm: 0.61 -1.008 ha, (d) medium farm: 1.009-3.03 ha, and (e) large farm: 3.03 ha and above(BBS, 2011).

Source of Information: ISSN 0258-7122 Bangladesh J. Agril. Res. 39(3): 447-460, September 2014

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

We analyzed BCR analysis, it is found that the highest BCR was obtained by owner cum tenant farmers from mortgaged land and the lowest by owner cum tenant farmers from share cropped land. Again, this BCR in leased land was higher than this share cropped land. Moreover, regression analysis reveals that the impact of socio-economic variables on gross revenues of the share cropped land for owner cum tenant farmers; weedicide, age, education, occupation, offfarm income including farm size had significant positive impact on gross revenues. From the foregoing discussion, it can be discerned that there is a potentiality of agricultural improvement by encouraging lease system in providing microcredit support for the farmers. Implementation of this lease system might be helpful to lead to attain higher gross revenue attaining higher profit as well as higher gross production and technological transformation for the betterment of agricultural production in Bangladesh.(1) HHH stands for house hold head (2) IC stands for irrigation cost. This irrigation cost is paid in kind as one fourth of the total produced crop; (3) Labour force unit (LFU) is the measurement of family labour, where people from 15-59 years regardless of sex were categorised 1 person=1 LFU, but in case of children 10-14 and elderly people more than 59 years old 1 person= 0.5 LFU; (4) Livestock unit (LSU) is the aggregate of different types of livestock kept at household standard unit calculated using following equivalents; 1 adult buffalo = 1 LSU,1 immature buffalo= 0.5 LSU 1 cow= 0.8 LSU, 1 sheep or goat= 0.2 LSU and 1 poultry or pigeon=0.1 LSU

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