Input Use of Paddy Farming under Owner Cultivated Land and Tenant -Cultivated Land in Batticaloa District

Kajenthini & Ganeshamoorthy
Paddy Farming under Owner Cultivated Land

Abstract  

Paddy is a most important food staple and mainstay for the rural population in Batticaloa district. Though, absence of land is prevailed in Batticaloa district. Therefore, farmers have been engaging on both owner – cultivated land and tenant- cultivated land to cultivate paddy. Batticaloa district in which there is a difference in regarding assessing the government assistance. The difference in term of ownership between owner cultivated land and tenant cultivated land, may be lead to variance in to use of more inputs between tenant farmers and owner farmers. Therefore, the present study tries to set out the use of input among owner farmers and tenant farmers in Batticaloa district. For this study, the primary data was collected by using structure questionnaire during the Maha season 2016/2016. The snowball sampling method was utilized to select sample and ordinary least square regression was utilized to analyze the data. The results show that there is a significance difference between owner- cultivated land and tenant -cultivated land in term of yield and profit. Particularly yield and profit are higher in the owner- cultivated land than tenant- cultivated land. Similarly, the difference also has found that input use and cost of input use between both lands.  Cost of input shows higher difference than amount of use of inputs in Batticaloa district. Particularly cost of inputs is higher on owner- cultivated land than tenant -cultivated land. Entirely the results show that there is a significance difference between owner- cultivated land and tenant -cultivated land in term of yield and profit it may attributed due to being difference in term of input usage and cost of input.
Key words: owner- cultivated land, tenant -cultivated land, input, Batticaloa district, Paddy farming
  1. Introduction

 Paddy farming is a direct source of income for the majority of the rural farmers as well as an indirect source of income for the providers of support services, paddy millers and traders of paddy and rice (Gamawelagedara et al, 2011).  Similarly, Paddy is a most important food staple and mainstay for the rural population in Batticaloa district which comprise around 61,321 hectares of paddy land There are 49,850 agricultural families in Batticaloa district, among the agricultural families most of the farmers engage on paddy farming (District Secretariat, Batticaloa 2015).  Besides in Batticaloa district, not all of farmers have own land to cultivate paddy crop.  Therefore, farmers who face a lack of paddy land they rely upon tenancy givers, as they all have no own land to cultivate seed paddy. As well as farmers who own land, they too sometimes lease land from others to increase the space for their crops (Rahman and Othman, 2010). Thus, farmers also gain more lands to raise their space of paddy cultivation in Batticaloa district. In this case, farmers attempt to obtain paddy land to engage on for the purpose of cultivating seed paddy as well as increase the share of paddy cultivation. Consequently, in Batticaloa district owner farmers as well as tenant farmers engage on owner-cultivated land and tenant- cultivated land to cultivate paddy.
When farmer secure with tenure, they tend to invest in their paddy land, which lead to promote productivity of land (Emmanuel and Victor (2014). Similarly, the stability of tenure may induce farmers to tend sustainable land use practices and invest in soil productivity (Oladele et al, 2011). Nonetheless, In Batticaloa District tenant- land may not provide feasible to farmers to induce stable growth regard paddy production since most of the tenancy agreements have no form of written. It associates mostly with oral agreements and made alone without any legal evidence. Therefore, like owner farmers, tenancy takers do not obtain assistance as well as privilege from the government of Sri Lanka regarding paddy farming due to the informal tenancy system. If the government of Sri Lanka assists for paddy sub-sector in the form of cultivation loan, fertilizer subsidy, purchasing the stock by paddy marketing board, compensation, etc tenant farmers do not access them because of fact that absence of ownership.
When farmers form cooperatives to ensure greater access to fertilizer, improved seeds, agricultural credit and extension services, those would be inducing to sufficient capital involved on paddy production Chendo and Joseph (2014).  Though, Batticaloa district in which there is a difference in regarding assessing the government assistance. The difference in term of ownership between owner cultivated land and tenant cultivated land, may be lead to variance in to use of more inputs between tenant- cultivated land and owner- cultivated land. In particular, tenant farmers may not use more quantity of inputs like owner farmers. In input use and paddy production of tenancy in land, which require adjustment in the prevailing form of tenancy characteristics to obtain optimal utilization of available inputs (Prakash, 2013) in Tilekar, 2000).  Thus, previous studies also had given important to input use of both owner-cultivated land and tenant -cultivated land. The present study also tries to set out the use of input among owner farmers and tenant farmers in Batticaloa district.
As previous literature had mentioned that if land is not secured farmer unable to invest in more inputs. According to Fujimoto (1996), the share tenancy appeared to create serious implication to tenancy takers corresponding to using input if the contract was maintained by absentee landowners. In this line, preceding scholars also showed the difference in term of input use among landlord and tenant.
Prakash et al. (2013) estimated production pattern and input use pattern under both owner farmers and lease in farmers in Tungabhadra project area. According to the study, owner- cultivated land in total cost of cultivation and net returns was not similar with total cost of cultivation and net returns of tenant- cultivated land.  In particular, if both farmers use seeds more than recommended quantity, tenant farmers use higher quantity of seeds than owner farmers. Though, in order to earn extra yield, lease in farmers use more amount of fertilizer and pesticides than owner farmers. Similarly, owner cultivator less than compare to tenant farmers in use of growth promoters and micronutrients. Moreover, owner farmers use also more of farm yard manure compare to tenant in farmers though author showed that there was no significant difference in use of organic manure among owner farmers and tenant farmers. Tenant – cultivated land also found to high wage and non – availability of labour compare to owner-cultivated land. In contrast, tenant farmers use more laborers and machinery than tenant farmers. tenant farmers use less machinery than due to higher cost co machinery. This study found to difference in use of labour, yard manure, seeds fertilizer and pesticides between owner cultivated land and tenant-in land were not significant. However, there is difference in use of inputs between tenant farmers and owner farmers.
Lakshmi et al., 2009 revealed that, the government policies like fertilizer subsidy, agricultural credit, minimum support price policy that increases the share of input in Indian agricultural system. Consequently, smallholders increase the share of inputs over the years than other farmers. In this circumstance agricultural policies make worse the negative effect of land inequity on productivity. The study also indicates that share of inputs has been increased over time, nevertheless a large number of smallholders do not access to these inputs due to inequity of land, which is the primary reason for the inequity to negative effect on agricultural productivity.
Rakhshanda and Awudu (2014) emphasized that “tenure security tends to increase the intensity of investment in long-term soil-improving measures” and when investment increase in soil maintenance, it also leads to an increase in the agricultural productivity significantly. Besides, their results revealed that tenure security decrease the intensity of chemical fertilizer. Thus, they point out that when tenure security exert and non- farm work increase, it would be affected positively and significantly on the agricultural productivity. Overall, owner-cultivators are willing to invest more in soil-improving measures, due to higher security of land rights but less in chemical fertilizer. On the other hand, fixed-rent tenants’ willingness is less to invest in soil-improving measures, but higher in chemical fertilizer.  Thus, they state that the ownership induces to enhance the long term agricultural investments and higher productivity via security effect of land. Conversely, insecure land right restricts the investment causes create disincentive to farmers to spend resources on land improving inputs. It leads to low productivity of land.
Chendo and Joseph (2014) confirmed that farmers practiced more on individuals’ land tenure system than communal[1] land tenure system. Furthermore, they found out that different between the productivities of paddy farmers on the different land tenure systems were statistically different. The results showed that rice production of individual land tenure system is relatively more productive and profitable compare to on communal land tenure system. Finally, they concluded that use of inputs on paddy cultivation, which will assist to diminish the occurrence of insufficient capital involved in production.
Chandrasiri, (2010) argued that since most of the informal land transaction was between tenancy takers’ friends or relations. Further, there was no ill effect between relatives. Particularly, tenancy takers utilize more the advance technologies consist of fertilize, chemicals and labour than the owner cultivators. Hence, informal transaction induces effectively the use of inputs, water, advance technology and labour to obtaining higher productivity and profits
Though, most of the scholars had found difference in term of input use under the owner-cultivated land and tenant-cultivated land. Further, if farmers have secure land, which would lead inducement to long- term investment on land as well as to increase the input use.
  • Research Objectives

The main objective of the study is to investigate whether tenant- cultivated land differ in use of inputs from owner- cultivated land in Batticaloa district.
  1. Methodology

The quantitative research approach has applied for the study by using primary data. Primary data were collected from both owner farmers and tenant farmers who were selected by using snowball sampling technique in Batticaloa district. One hundred and fifty of samples were selected from owner farmers as well as one hundred and fifty of samples were selected from tenant farmers. The study has used cross-section analysis to investigate the study objective. In this study has collected the data through structured questionnaire for Maha season 2015/2016. For examine whether tenant- cultivated land differ in use of inputs from owner- cultivated land, Ordinary Least Square (OLS ) regression was utilized by transfer into log linear form. Ordinary Least Square regression used for both leased in land and owner cultivated land separately. Entire data was analyzed by STATA computer package. OLS Regression equation can be expressed as follow,
lnY = β0 + β1lnX1   + β2lnX2 + β3lnX3 + β4lnX4 + β5lnX5 + β6 X6 + β7ln X7 + β8 X8 + β9lnX9 + β10ln X10 + ε
 Where
Y:   Paddy Production (Kg)
X1:  Size of land (acre)
X2: Quantity of fertilizer (Kg)
X3:  Quantity of seeds paddy (Kg)
X4:  Cost of pesticides and insecticides (Rs)
X5:  Number of labour
X6:  Number of family Labours
X7:  Cost of machinery
X8:  Dummy for irrigation (1: Rainfall 0: otherwise)
X9:  Extension service
X10: Farmers’ experience (Number of years)
ε  :  error term
Source: Author’s Computation   *** and ** denote the significant level of 1% and 5 % level
According to the results, size of land and machinery were influenced the paddy production of owner farmers since those being significantly with paddy yield at one percent level. Though, factor of irrigation, Extension service, experience negatively affected the production of owner cultivated paddy land because of negative significance at 1 %, 5 % and 5 % respectively. Other factors namely fertilizer and hire labour, were not found to be significant with paddy production of owner farmers since being insignificant negatively on paddy production. As well as   seed, family labour and pesticide have found to be as being insignificant positively respect to the paddy production under the owner-cultivated land in the study area.
Land had a positive coefficient sign and significant at 1 percent level with an elasticity of 0 .82356 implying that an increase of land by 10 percent would lead to an increase by 8.2356 percent. Cost of machinery had a positive significant sign implying it had positively significant impact on paddy production at 1 percent level. If an increase of cost of machinery by 10 percent increases paddy production by 3.10146 percent.
The result of irrigation showed a negative coefficient of -0.26962 implies it has significantly negative effect on paddy yield at one percent level. If farmers irrigate the paddy land via rainfall, the coefficient elasticity of rainfall is 4.662634. Based on the results, a 10 percent increase in the watering of irrigation, it would reduce paddy yield significantly by 46.62634 percent.  Moreover, if farmers increase watering by 10 percent to paddy land through pond, it would reduce the yield of paddy by 43.93014 percent. When watering by rainfall, it reduces more the paddy yield compare to watering through pond. It was attributed due to the increased over watering lead to increase the risk of plants failing which influenced to occur reduction of paddy production respect to owner-cultivated land.
Extension service and experience had a negative significant at five percent level. Extension service had elasticity of -0.139327 implying an increase of extension service by ten percent would lead to a deterioration of paddy production by 1.39327 percent. Like that, a rise in experience by ten percent would lead to the reduce of the paddy production of owner - cultivated land by 1.14214 percent.
The R- squared and adjusted R- squared had been 0.8118 and 0.8017 respectively. The R- squared indicating that over 81 per cent variations in the paddy production are explained by the explanatory variables included in the model.  Furthermore, adjusted R-squared also was significant to explain the good fitness of the model. The large value of F statistics (80.24) revealed that the explanatory variables included in the model collectively have significant influence on paddy production.
The results of OLS regression analysis of tenant – cultivated land were represented in the following table 4.2
According to the results, similar to owner –cultivated land, size of land and cost of machinery were impacted the paddy production of tenant farmers since those being significantly with paddy yield at one percent level. Further, experience of tenant farmers also was impacted positively at 5 percent level of significance on tenant- cultivated land. Though, other factors did not impact the paddy production under the tenant- cultivated land.
Other factors namely family labour and pesticide were not influence on paddy production of tenant farmers since being insignificant positively on paddy production. As well as seed, fertilizer, irrigation and hire labour, have found to be as being insignificant negatively respect to the paddy production under the tenant - cultivated land in the study area.
Size of land had found the coefficient elastic of 0 .896297 indicating that if increase paddy land by ten percent it would increase the paddy production of tenant farmers by 8.96297 percent. Similarly, cost of    machinery had the coefficient elastic of 0.3243169 which revealed if increase the cost of machinery by ten percent causes to increase 3.243169 percent of paddy production respect to tenant – cultivated. Thus size of land and cost of machinery significantly associated with paddy production respect to tenant farmers in Batticaloa district.
Farmers’ experience had the positive coefficient elastic of 0.0971798 indicating if increase farmers experience by ten percent it would lead to an increase 0.97 percent of paddy production. Thus, Farmers’ experience had a positively significant impact on paddy production at five percent level.
Entirely the results revealed that in both owner-cultivated land and tenant- cultivated land, land and machinery had associated positively on paddy production. Moreover, irrigation had influence negatively on paddy production of owner-cultivated land conversely there was no significant influence on paddy production respect to tenant-cultivated land. Similarly, owner framers’ experience had negative impact on their paddy production vice-versa   tenant farmers’ experience had positive impact on their paddy production.  Other factors had no impact on paddy production respect to both owner-cultivated land and tenant- cultivated land.
The result shows that owner farmers have utilized slightly more quantity of seeds than those of tenant farmers in order to continue higher density of plant population for avoiding any kind of uncertainty. The results also revealed that owner farmers have utilized quantity of pesticides relatively more than tenant farmers on paddy farming.
Though, tenant owner farmers have utilized the quantity of fertilizer and hourly use of machinery is relatively lower when comparing to tenant farmers. However, there were no significant differences in use of labour as both owner and tenant farmers used the same number of labour on paddy farming.
According to the calculated average use of inputs, there is a slightly difference between owner- cultivated land when compare to tenant -cultivated land. The use of seeds and pesticide are higher among owner farmers compared to tenant farmers. On the other hand, the use of fertilizer and hourly usage of machinery are higher among tenant farmers compared to owner farmers. Furthermore, both farmers maintained equal number of laborers.
The study also estimated the average yield of paddy for per acre in Batticaloa district. The result shows that average yield of owner- cultivated land is 1300.40 Kg and average yield of tenant - cultivated land is 1296.75 Kg. Accordingly, owner farmers obtain higher yield of paddy than tenant farmers in Batticaloa district.
Generally, an extra amount of cost occurred due to rent of tenant land by tenant farmers compare to owner farmer. Further, the study reveals that another cost of input differences between owner farmers and tenant farmers. The results show that tenant farmers have occurred higher amount of average cost on seeds, fertilizer, pesticides, labour and machinery than owner farmers. It reveals that relatively tenant farmers bear higher amount of cost on entire input under the tenant cultivated land. The results similar to Prakash et al. (2012) who also found that cost of inputs is high in tenancy in land. On the other hand, owner farmers’ amount of average cost is lesser compare to tenant farmers. Finally, based on the results the study reveals that there is a significant difference found in the cost of cultivation between owner -cultivated land and tenant- cultivated land. Specially, the difference has obtained due to a higher amount of cost incurred by the tenant farmers.
Furthermore, the study has estimated average profit to compare profit between both owner- cultivated land and tenant -cultivated land.  Owner farmers have obtained profit of 30100.5 Rs but tenant farmers have obtained profit of 29378.92 Rs. According to the average profit, in owner- cultivated land farmers slightly obtain higher profit than tenant farmers. Entirely the study found that there is a significant difference between owner- cultivated land and   tenant -cultivated land on average profit and average amount of cost on inputs in the study area. Like yield, there is a difference between owner- cultivated land and tenant -cultivated land in term of profit. It was attributed due to the fact that average yield of paddy is higher in owner- cultivated land compare to tenant -cultivated land.
Entirely the results show that there is a significance difference between owner- cultivated land and tenant -cultivated land in term of yield and profit. Particularly yield and profit are higher in the owner- cultivated land than tenant- cultivated land. Similarly, the difference also has found that input use and cost of input use between both lands.  Cost of input shows higher difference than amount of use of inputs in Batticaloa district. Particularly cost of inputs is higher on owner- cultivated land than tenant -cultivated land.
  1. Conclusion

The study was conducted to investigate whether tenant- cultivated land differ in use of inputs from owner- cultivated land in Batticaloa district by using OLS regression analysis. The results revealed that in both owner-cultivated land and tenant- cultivated land, size of land and cost on machinery usage had effected positively on paddy production. Moreover, irrigation had influence negatively on paddy production of owner-cultivated land conversely there was no significant influence on paddy production respect to tenant-cultivated land. Similarly, owner framers’ experience had negative impact on their paddy production vice-versa tenant farmers’ experience had positive impact on their paddy production.  Other factors had no impact on paddy production respect to both owner-cultivated land and tenant- cultivated land.
Further, the results showed that there is a slightly difference between owner- cultivated land and tenant -cultivated land. The use of seeds and pesticide are higher among owner farmers compared to tenant farmers. On the other hand, the use of fertilizer and hourly usage of machinery are higher among tenant farmers compared to owner farmers. Furthermore, both farmers maintained equal number of laborers.  Similarly, there is a significant difference in the cost of cultivation between owner -cultivated land and tenant- cultivated land. Specially, the difference has obtained due to a higher amount of cost incurred by the tenant farmers. Moreover, owner farmers obtain higher yield of paddy than tenant farmers in Batticaloa district.  As well as owner farmers obtain higher profit under the owner- cultivated land compare to tenant farmers.   Entirely the results show that there is a significance difference between owner- cultivated land and tenant -cultivated land in term of yield and profit it may attributed due to being difference in term of input usage and cost of input.

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[1]  Communal mean as right of commons may exist within a community where each member has a right to use independently the holdings of the community
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