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Factors Affecting Land Allocation for Maize Cultivars in Lalmonirhat District of Bangladesh

S Alam
Department of Agricultural Economics; Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

MS Kowsari
Department of Agricultural Extension Education; Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

NY Chowdhury
Bangladesh Bank, Bangladesh

MM Islam
Department of Rural Development, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur-1706, Bangladesh

S Haque
Department of Agricultural Economics; Bangladesh Agricultural University, Mymensingh 2202, Bangladesh

Abstract/ Executive Summary:

Maize is considered as the third most important cereal crop and has more versatile uses in Bangladesh. The study was undertaken to examine the profitability and technical efficiency of maize production as well as to determine the influence of various socio-economic features on farmers’ land allocation for maize farming in Bangladesh. In doing so, the study utilized the farm-level data collected by the field survey in Lalmonirhat district of Bangladesh. A total number of 60 farmers were selected by using stratified random sampling method among which 36, 20 and 4 farmers were selected under three strata, small, medium and large farmers, respectively. Data were analyzed using simple statistical techniques as well as OLS regression analysis. The comparative analysis among different strata of farmers by this study brought into being that large farmers received higher profit compared to the small and medium farmers. The other results of the study include that maize cultivation helped a lot in improving the nutritional status of the rural people; in creating employment opportunity for them and in increasing household income in the study area. The result of the OLS method suggests that factors like education level, neighbor’s influence, farm size and higher output price of maize have significant influence upon the choice of farmer’s land area allocation for maize cultivation in the study area. Based on the findings, this study recommends that proper initiatives must be undertaken by the responsible authority to ensure the efficient use of resources by the maize farmers.

Keywords: Land allocation, Maize, Socio-economic, Farmers

Location: Parulia, Barakhata and Dowabari under Hatibandha upazila, Lalmonirhat district

Start Date: 00-02-2015

End Date: 00-04-2015

Program Area: Socio-economic and Policy

Non-commodity: Social status

Objectives:

The specific objectives are to identify the socio-economic characteristics of maize farmers, determine the profitability of maize production and examine the factors affecting the choice of land allocation for maize production.

Methodology:

Lalmonirhat is one of the important districts where the maize crop is grown intensively. In order to achieve the objectives under this study, survey was conducted in three villages namely Parulia, Barakhata and Dowabari under Hatibandha upazila. The purpose of the study was to determine the farmer’s choice on land allocation for maize farming in Lalmonirhat District. To fulfill the purposes, the survey was conducted during the period of February-April, 2015 making frequent visits to the sample farmer's households. Total sample size was 60, among which 36 small farmers (land holdings 0.02 ha to 1.0 ha), 20 medium farmers (land holdings 1.01 ha to 2.0 ha) and 4 large farmers (land holdings 2.01 ha to above) were selected by using stratified random sampling technique. In order to determine the net returns from maize production, gross costs (variable and fixed costs) were deducted from gross returns. An easy principle to determine costs and return was followed to determine the profitability of maize production. For this purpose, the following equation was used and applied for each of the selected farmers: Π = Pm* Ym+Pb* Yb-Σ (Pxi * Xi)-TFC Where, the variables are specified as follows; Π = Net return; Pm = Price of main product per units; Ym = Total quantity of main product; Pb = Price of by-product per unit; Yb = Quantity of by-product; Pxi = Price of ith input per unit used for maize Production; Xi = Quantity of the ith input used for maize production; and TFC = Total fixed cost; i= 1, 2, 3 ......................n (number of input). Finally, to analyze the factors affecting land area allocation for maize farmers, the Ordinary Least Square (OLS) regression method was employed. The specification of the OLS method is of the following form: Y=β0+β1X1+β2X2+ β3X3+ β4X4+ β5X5+ β6X6+ β7X7+ β8X8+ β9X9+ β10X10 +ui; Where, the variables are specified as follows: Y = Farmers land allocation to Production of maize; X₁ = Education of the household (schooling years); X₂ = Credit facility used (dummy 1= yes; 0=no); X₃ = extension service used; X₄= neighbors influenced power; X₅= farm size (ha); X₆ = higher output price; X₇ = off farm income; X₈ = lower cost; X₉ = land suitability; X₁₀ = age of household head (years); β₀ = Intercept; β_1… β₁₀ = Coefficients of respective independent variables; and u_i = the error term.

Source of Information: Progressive Agriculture 27 (3): 346-354, 2016

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Achievement/Findings:

Maize is considered as the third most important cereals crops and has more versatile uses in Bangladesh. High production of maize depends on the expansion of HYV and hybrid variety of seed, improved management and timely supplying of inputs. The rate of adoption of modern technology and sustainability of maize production depend largely on its economic profitability. As maize is a profitable enterprise, so government and other research institutions should provide adequate extension programs to expand maize production. Key findings of the study include that the decision on production of maize is influenced by a number of important factors including education, neighbors influence over cultivators, farm size, and higher output price. Educational status of the respondents is very poor. So GOs and NGOs should take collaborative programmers to address this issue. Price of fertilizers and machinery should be regulated strictly by the intervention of the Government. The study also found that maize production is profitable in the study area. The comparative analysis among different strata of farmers by this study brought into being that large farmers received higher profit compared to the small and medium farmers. The effects of increasing cost for inefficient use of inputs like seed, manure, fertilizer, irrigation and insecticide had significant impact on gross return from maize production in case of all farmers. Based on the findings, this study recommends that proper initiatives must be undertaken by the responsible authority to ensure the efficient use of resources by the maize farmers.

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