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Farmers Land Tenure Arrangements and Technical Efficiency of Growing Crops in Some Selected Upazilas

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

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

Abstract/ Executive Summary:

There are different land tenure arrangements in crop cultivation in Bangladesh. It is needed to detect how farmers could maximize the benefits from proper utilization of their resources and technologies in these prevailing different land tenure arrangements in crop cultivation. The main quest of this study is to analyze the actual production level and how much is deviated from maximum attainable production level in terms of technical efficiency based on average gross revenue of output ha^-1 in the cultivated various types of crops among different categories of farmers and identifies the impact of the factors associated with technical efficiency. In search of this research question a case study was conducted in two Upazilas (Sub districts) in Bangladesh based on cross section data. This data were collected from January to March, 2013. Age of the household head, education, farm size, off-farm income and other concerned issues were assessed. Maximum likelihood estimation and ordinary least square regression techniques were used to estimate the parameters of the stochastic production frontier. Ordinary least square regression was used to identify the factors associated with technical efficiency. The study reveals that the technical efficiency varied among different categories of farmers. But land rent (0.0575) and weed management (0.0838) had significant positive impact on technical efficiency. This detects the potentiality to improve the technical efficiency by taking proper measures in land tenure arrangements in consideration of land rent and provide required weed management support for the farmers.

Keywords: Stochastic frontier approach, Maximum likelihood estimation, Ordinary least square regression method, Land tenure, Agricultural production

Location: Basail upazila of Tangail district and Titas upazila of Comilla district

Start Date: 00-01-2013

End Date: 00-03-2013

Program Area: Knowledge Management

Non-commodity: Land management

Objectives:

1. To analyze the technical efficiency of different categories of farmers in cultivating various cultivated crops in a cropping year to detect the actual production level and deviated from the maximum attainable production level of the farmers;

2. To identify the impact of the factors influencing technical efficiency of different categories of farmers;

3. To recommend for betterment of agricultural production

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 76002.The area of Titas upazila was 107.19 sq.km, and population was 183425.These two Upazilas were selected as farmers of these two Upazilas were getting proper agricultural support of the government due to location advantage, which can represent the overall farming characteristics of the country. The purposive stratified sampling technique was followed as the share of owner, owner cum tenant and tenant farmers were very disproportionate in the study areas (DAE, 2013). Three hundred respondents were taken equally one hundred for each category and fifty respondents from each upazila.Data were collected in survey method from January, 2013 - March, 2013 to trace out the proper factors of technical efficiency under different land tenure arrangements based on the cultivated crops in a cropping year. The major cultivated crops in the study areas were HYV Boro, T. Aman and B. Aman. Mustard, jute, wheat or pulses were cultivated as minor crops. Normally two or three crops were cultivated in each plot of land among these crops in a year. The collected data were analyzed by using STATA9. Stochastic frontier model was used to measure the technical efficiency of the different categories of farmers based on their average gross revenue of output ha^-1 in the cultivated various types of land. This study considers the stochastic frontier approach with the assumption that the actual production cannot exceed the maximum possible production with the given input quantities and it is suggested to determine the factors responsible for inefficiency. It was used in a two stage procedure. In the first stage, TE was computed and in the second stage socioeconomic variables of farm households were regressed against this TE using ordinary least square(OLS) regression method to identify their impact. It was found in the study areas that if half of the seed cost was provided to the tenant by the land owner then land owner claimed half of the produced by-product, and even sometimes without sharing this seed cost the half of the produced by- product was claimed also based on customary rule. To avoid this complexity, the price of by-product was not taken into account in estimating gross revenue as well as seed was not included due to this reason. V_i presents the error term accounting for random variation in gross revenue due to factors outside the control of farmers. The variables for the study were chosen considering both production theory and local context of the farmers. Analysis of variance (ANOVA) was used to analyze the mean difference of technical efficiency of the farmers. Regression analysis was used to identify the impact of the factors associated with technical efficiency. In using this stochastic frontier model Wald chi² test showed significant result (P= 0.0000), that indicates the fitness of the model. All of these stochastic frontier model, ANOVA and regression analyzes were used based on overall study areas. For the regression analysis OLS method was used, because OLS is easier to analyze mathematically than many other regression technique. It produces solution those are easily interpretable; OLS is the best unbiased linear estimator of the model coefficient. Moreover, robust regression technique of this OLS model mitigates the problem of data variation. Before running this OLS model data were validated using Variance Inflation Factor (VIF) and robust regression method for multicollinearity and heteroskedasticity. This OLS model was also used in the study on Farm Productivity and efficiency in Rural Bangladesh: The role of Education Revisited.

Source of Information: Bangladesh J. Agril. Res. 40(3): 347-361, September 2015, ISSN 0258-7122

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

In this study technical efficiency of different categories of farmers was estimated using stochastic frontier model and analyzed the estimated technical efficiency using ANOVA. It was found that there was a statistically significant difference from zero in the level of technical efficiency among owner, owner cum tenant and tenant farmers. It was also found significantly positive influence of land rent and weed management on technical efficiency. From the discussions it can be discerned that, there is a potentiality for the enhancement of technical efficiency in ensuring change by taking measures in land tenure arrangements in proper implementation of the land reform ordinance 1984 that will ascertain higher surplus for the share croppers in share cropped land and provide weed management support for the farmers.Those might lead to attain higher technical efficiency.

Knowledge Management: Journal