Farm Productivity and Profitability: An Economic Analysis of Predominant Farming Systems in Tamil Nadu

This paper has evaluated the performance of existing pre-dominant farming systems in the western zone of Tamil Nadu by collecting primary data from 192 farmers for the year 2012–13. The standard cost analysis and stochastic frontier model have been used to measure the farm profitability and productivity. The study has found that seven different pre-dominant farming systems are practised, of which, fruits and turmeric farming systems have been found to be most profitable. The lowest production cost was realized under livestock and cereals farming system due to effective utilization of farm by products. Herfindahl index has indicated that marginal and small farms are diversifying towards horticultural crops and livestock, whereas the large farms are specialized with horticultural crops. The technical efficiency estimates have indicated that there is a scope for improvement in productivity enhancement up to 40 per cent of the current level in all the farming systems. This can be possible only by facilitation with better knowledge and proper intervention by the agricultural extension services on the latest farming technologies. Further, ensuing adequate supply of farm machineries and deploying MGNREGA employment during peak crop seasons are suggested to meet the labour demand in the study area.