Farm Planning for Income Stability under Risk in Dryland Agriculture of Maharashtra

This study has investigated the extent of crop diversification as well as risk aversion behaviour of dryland farmers in Maharashtra. It has also estimated the risk efficient optimum farm plan for small, medium and large farms by using linear programming MOTAD model during the period 2010–2013. The study has revealed the cropping pattern in Osmanabad district to be more diversified, where pigeon pea has been substituted by soybean which is a high-value crop. The magnitude of crop diversification indices increases with increase in farm-size across all farm-size groups. The regression analysis has indicated that increase in farming experience increases the risk aversion behaviour of the farmers, and every additional dependent added to the farm family would increase the risk. By using MOTAD technique, a new profit maximizing optimum farm plans has been evolved for small, medium and large farms in the Solapur district. It indicated that profit get maximized with increase in mean absolute deviation. It means that farmers have to take more risk for getting more profit. Cultivating under risk should be made part of farmers’ training and extension programme to improve the efficiency of individual farms in the study area.