Our completed Research Project:
Impact of Farm Diversification on Household Income and Expenditure in Rangpur and Lalmonirhat district of Bangladesh
Executive Summary of the Project
Farm diversification plays a vital role in providing nutrition, extra income, employment, and poverty alleviation. The study was undertaken to analyze the impacts of various farms and farms practiced by farmers on farm household income and expenditure in selected rural areas of Bangladesh. The purpose of this study was to identify the present farm diversification pattern and the factors affecting such diversification; to estimate the impingement of farm diversification on household income and expenditure.
Rangpur and Lalmonirhat district was selected purposively as a study area because this district is one of the farms and off-farm activities based areas of Bangladesh. After a preliminary visit six villages ‟s namely South panapukur, Ghaghottari, Betgari , Tushvandar, Kakina, Kaliganj Sadar were selected randomly as the study area. Through Purposive sampling, 120 farm households were selected for the study. To analyze the data, statistical techniques were used.
The study showed that the socioeconomic characteristics of the selected farmers were not very different from those of the farmers in the region. The average number of persons per family of small farmers is presented in categories on the basis of their age. The age groups are – (i) 18-24 years, (iii) 25-54 years, and (v) Above 55 years. The highest number of family members are belonging to the category of 25-54 years. Agricultural credit is the term used to refer to funds lent for the cultivation, storage, processing, and selling of crops and livestock products by individuals, agricultural enterprises, and others. 90% of the small farmers sampled had to access to credit, while the other 30% had no access to credit.
In the case of the category of household (100.0%), the respondents sampled belong to the owner in case of the category of the household. The non-farm rural economy houses a highly heterogeneous array of trading, agro-processing, manufacturing, business, and service activities. Strong differences emerge regionally, even within the same country, as a result of varying natural resource endowments, labor supply, location, infrastructural investment, and culture. Small households account for 85 percent of non-farm revenue sources.
Financial analysis of farms and their contributions to farm household income were analyzed to examine the relative importance of different enterprises. Gross income from crop was Tk. 1322529 per month and TK. 15870348 per year which was the highest and the corresponding figures for livestock, poultry, fish, and vegetables were Tk. 702790, TK. 454165, TK. 97404 and TK. 67989 respectively per month as well as TK. 112446.4, TK. 181666, TK. 29221.2, TK. 32634.72 respectively per year. Gross income from Service/Labor selling was Tk. 1488000 per month and TK. 17856000 per year which was the highest and the corresponding figures for Business and Renting were Tk. 262300 and TK. 34998, respectively per month as well as TK. 32305.85, TK. 87433.33 respectively per year and for others 45300 per month and 543600 per year.
The expenditure was divided into eighteen categories. It was assumed that Farm Size, Family Size, Employment member number in the family, Diversified farm number, Involvement with Non-farm activities would have a positive household income relationship. Farm size, diversified farm numbers could be considered to have a positive impact on the income of the farm households. Involvement with non-farm activities has a somewhat negative impact on farm household income.
Family Size & Contribution of Employment member in the family to farm household income also has a positive impact. Five important independent variables were included in the model and these variables were Farm Size, Family Size, Employment member number in the family, Diversified farm number, Involvement with Non-farm activities. Farm size, diversified farm numbers could be considered to have a positive impact on the expenditure of the farm households. Involvement with non-farm activities has a somewhat negative impact on farm household expenditure.
Family Size & Contribution of Employment member in the family to farm household expenditure also has a positive impact. Farmers faced different problems and constraints in diversifying farm. The most common problems were Crop damage by insects and pests, Lower price of Agricultural goods, Unavailability of good quality seed, Syndicate of businessmen, High cost of inputs, lack of adequate funds. Based on these issues, some suggestions in this hypothetical area were catered for potential use.