Examining the role of farm mechanisation in enhancing farmer's income: A panel data study of rice and wheat

The escalating wages due to labour scarcity in Indian agriculture is a major challenge in the way of enhancing farmer's income. One way of dealing with the rising labour issue is its substitution with the other power sources. Here, mechanisation is a crucial input in increasing farmers’ income by facilitating timely farm operations, input use efficiency, cropping intensity and farm productivity. In the present study, the status of mechanization and its impact on yield, cropping intensity and profitability in agriculture has been analysed. The time series regression shows an increase in productivity and cropping intensity by 0.575 and 9.649 units, respectively with a unit increase in farm power availability (kW/ha). The panel data regression in paddy and wheat crop has revealed a positive impact of machine use on the profitability of both the crops.