1Research Scholar, Department of Agricultural Economics, Punjab, India
2Senior Extension Scientist, Department of Agricultural Economics, Punjab, India
*Corresponding author: rohitsaini-aes@pau.edu (ORCID ID: 0000-0001-8405-3713)
Online published on 27 May, 2021.
Investment is the expenditure incurred for real capital formation. A sample of 150 farmers was taken with 23 (15.3%), 28 (18.7%), 46 (30.7%), 43 (28.67%) and 10 (6.7%) farmers selected from marginal, small, semi-medium, medium and large farm size categories respectively in proportion to the share of respective category in total farmers in Punjab. Income, consumption, funds available post-consumption and investment level of the respondent farmers was worked out to find the factors that affect farm investment. Information related to education level, family type, cropping pattern and credit availability was also collected to see if they affect the level of investment. Income, consumption and funds available post-consumption were higher for larger farm households. The level of investment was higher on large farms but the investment per hectare was highest on marginal farms. The availability of credit was more on larger farms but per cent share of credit in investment decreased as the farm size increased as large farmers were using owned funds extensively. The regression analysis revealed that the size of the operational holdings, saving and the credit availability showed positive relation with the level of investment while the education level, family type and cropping intensity were non-significant.
Highlights
Wheat (39.16% of GCA) is the main crop of the region with highest area under cultivation followed by paddy (21.37% of GCA) and Cotton (9.47% of GCA).
Income as well as consumption expenditure increases as we move from marginal toward large farmsize category farmers.
Overall, investment, income and consumption expenditure is very high on large farms.
Investment per farm shows steep rise as we move from marginal toward large farmers; investment per hectare moves in opposite direction i.e. it decreases with increase in farm size.
Share of investment in livestock is higher for marginal and small farmers; it decreased with increase in farm size. Share of investment in farm buildings in total investment decreases with increase in farm size.
Share of investment in machinery and implements and irrigation structures increases with increase in farm-size.
Factors affecting farm investment includes size of the farm; credit availability, availability of funds after meeting consumption requirements.
Formal or informal grouping of farmers is suggested to marginal and small farmers.
Investment, Agriculture, Factors affecting investment and Punjab
