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Farm Size and Returns to Cultivation in India: Revisiting an Old Debate

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  • Sarthak Gaurav
  • Srijit Mishra

Abstract

This paper revisits the long-debated question of the relationship between farm size and productivity by studying the relationship between area cultivated and net returns to cultivation in India using a nationally representative data-set. The analysis is carried out separately for the two major agricultural seasons, kharif and rabi , and for both the seasons pooled together. Our findings suggest the existence of an inverse relationship, even when we control for a number of household and farm characteristics and even when we treat factors such as household type (occupation), social group (caste), agro-climatic zone (region) and agricultural season as fixed effects. The result is also robust to correction for selection bias. However, the efficiency of the smallholder as a result of this greater productivity has to be treated with some caution as it ignores the low absolute levels of their returns, which raise questions about the sustainability of their livelihoods. This is further aggravated by the fact that they pay relatively higher unit costs and because of their greater dependence on purchased inputs.

Suggested Citation

  • Sarthak Gaurav & Srijit Mishra, 2015. "Farm Size and Returns to Cultivation in India: Revisiting an Old Debate," Oxford Development Studies, Taylor & Francis Journals, vol. 43(2), pages 165-193, June.
    • Handle: RePEc:taf:oxdevs:v:43:y:2015:i:2:p:165-193
    DOI: 10.1080/13600818.2014.982081
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    References listed on IDEAS

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    1. Reddy, D. Narasimha & Mishra, Srijit (ed.), 2009. "Agrarian Crisis in India," OUP Catalogue, Oxford University Press, number 9780195695953.
    2. Bliss, C. J. & Stern, N. H., 1982. "Palanpur: The Economy of an Indian Village," OUP Catalogue, Oxford University Press, number 9780198284192.
    3. Roumasset, James & Lee, Sang-Hyop, 2007. "Labor: Decisions, Contracts and Organization," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 52, pages 2705-2740, Elsevier.
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    1. Rezitis, Anthony & Mishra, Ashok & Kumar, Shalander, . "Indians Demanding More Plant-Based Protein but Farmers' Profits Drop: Empirical Evidence to Understand the Dilemma," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(1).
    2. Varun Kumar Das & A. Ganesh-Kumar, 2019. "Commercialization, diversification and structural determinants of farmers' income in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2019-042, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Kilic, Talip & Zezza, Alberto & Carletto, Calogero & Savastano, Sara, 2017. "Missing(ness) in Action: Selectivity Bias in GPS-Based Land Area Measurements," World Development, Elsevier, vol. 92(C), pages 143-157.
    4. Gautam, Madhur & Ahmed, Mansur, 2019. "Too small to be beautiful? The farm size and productivity relationship in Bangladesh," Food Policy, Elsevier, vol. 84(C), pages 165-175.
    5. Giller, Ken E. & Andersson, Jens & Delaune, Thomas & Silva, João Vasco & Descheemaeker, Katrien & van de Ven, Gerrie & Schut, Antonius G.T. & van Wijk, Mark & Hammond, Jim & Hochman, Zvi & Taulya, God, 2022. "IFAD Research Series 83: The future of farming: who will produce our food?," IFAD Research Series 322005, International Fund for Agricultural Development (IFAD).
    6. Raynold Runganga & Winnie Njoroge & Syden Mishi, 2022. "Restoration of Land Acquired for Resettlement and the Fast-Track Land Reform Programme in Zimbabwe," Sustainability, MDPI, vol. 14(15), pages 1-14, July.
    7. Bina Agarwal & Ankush Agrawal, 2016. "To farm or not to farm? Indian farmers in transition," Global Development Institute Working Paper Series 012016, GDI, The University of Manchester.
    8. Agarwal, Bina, 2018. "Can group farms outperform individual family farms? Empirical insights from India," World Development, Elsevier, vol. 108(C), pages 57-73.
    9. José I. Cuesta & José G. Díaz & Francisco A. Gallego & Felipe González & Guillermo Marshall, 2017. "La reforma agraria chilena: hechos estilizados a la luz de una nueva base de datos," Estudios Públicos, Centro de Estudios Públicos, vol. 0(146), pages 7-48.
    10. Varun Kumar Das & A. Ganesh-Kumar, 2018. "Farm size, livelihood diversification and farmer’s income in India," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 45(2), pages 185-201, June.
    11. Julien, Jacques C. & Bravo-Ureta, Boris E. & Rada, Nicholas E., 2021. "Productive efficiency and farm size in East Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 60(3), August.
    12. Sarkar, Biplab, 2017. "Household Crop Incomes Among Small Farmers: A Study of Three Villages in West Bengal," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 7(2), December.
    13. Conceição, Pedro & Levine, Sebastian & Lipton, Michael & Warren-Rodríguez, Alex, 2016. "Toward a food secure future: Ensuring food security for sustainable human development in Sub-Saharan Africa," Food Policy, Elsevier, vol. 60(C), pages 1-9.

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