Farm Business Income across Land-size Classes and Land Tenure Status: A Field Study in Assam Plains

Using farm level data from the plains of Assam, the paper has estimated farm business income across different land-size classes and land tenure status. The analysis has been carried out at the aggregate level as well as at disaggregate level for three specific crops, viz. winter paddy, summer paddy and winter vegetables. It has been found that sharecropping and fixed rent tenancy contracts have a negative and significant impact on farm business income. The lower level of farm business income on leased-in land, especially under sharecropping, can be attributed to payment of a significant amount as rent, which is higher than even that stipulated in the tenancy law. Accordingly, certain reforms in the existing tenancy law have been suggested. The study has suggested a shift in the cropping pattern from the presently predominant winter paddy to more remunerative crops such as vegetables, which is also desired for a healthy transition of Assam agriculture from subsistence cultivation to a profitable venture.