Factors affecting income and employment of marginal and small farmers in South-Western Punjab

The present study was conducted to examine the factors affecting income and employment level of marginal and small farmers in south-western Punjab during the year 2014-15. The study revealed that average operational area in the case of marginal and small farms was 1.97 and 4.41 acres, respectively. The proportion of leased-in land in the operational area was quite less. Most of the sampled farmers followed cotton-wheat crop rotation in the study area. However, basmati was also cultivated on some area by the sampled farmers as an alternative crop of cotton. The cropping intensity of overall farms was found to be 197.65 per cent. Crop production and dairy farming were the main sources of income of the sampled farmers. The net income obtained from crop farming and dairy farming contributed about 33 and 18 per cent to the total annual net income. Income from off-farm sources has been identified as another important factor contributing significantly to the net income of farm households. The share of income earned from non-farming sector was higher among marginal farms (58.36%) as compared to small farms (40.70%). The study brought out that farm size, crop value productivity, net income from dairy and off-farm income have significant positive impact on the income level. The value of coefficient of multiple determination (R²) in case of overall farm situation was worked out as 0.55, which is significant at one per cent level of significance. As farm size appeared to be a significant variable in improving income from agriculture, but it is not possible for the marginal and small farmers to expand area under cultivation. Therefore, suitable policies should be framed for improving the crop value productivity by increasing area under high value crops. Moreover, multi-pronged policy should be developed for expanding employment opportunities in non-farm sector, which in turn will be helpful for enhancing income of this vulnerable section of the society.