Causes of Low Agricultural Output and Impact on Socio-economic Status of Farmers: A Case Study of Rural Potohar in Pakistan

INTERNATIONAL JOURNAL OF BASIC AND APPLIED SCIENCE

Insan Akademika Publications

P-ISSN: 2301-4458 E-ISSN: 2301-8038 Vol. 01, No. 02 Oct 2012

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Causes of Low Agricultural Output and Impact on Socio-economic Status of Farmers: A Case Study of Rural Potohar in Pakistan
Aneesa Masood 1, Nazima Ellahi 2, and Zamara Batool 3
1

Department of Economics, Foundation University Islamabad aneesamasood@yahoo.com Department of Economics, Foundation University Islamabad nazimaellahi@yahoo.com Department of Economics, Foundation University Islamabad zamarabatool@yahoo.com

Key Words
Farmers, Sosio-economic status, Agricultural

Abstract
Agriculture being the key sector for economy of Pakistan occupies central place. Since its inception, this sector is subsistent and facing many risks and vulnerability. Over the time due to technological gap in developing countries, they failed to develop rapid expansion and productivity in this sector. The present study is a qualitative analysis conducted to explore the causes of low productivity in agriculture sector, and finding its impacts on the socioeconomic status of farmer. The study conducted a questionnaire survey for the rural farmers residing in Potohar region. A sample of 100 respondents has been chosen, and analysis is carried out by using SPSS software. The study concluded that the higher growth rate for the agriculture sector is very important for a fast overall improvement of the economy, macroeconomic constancy, employment generation, and decrease in rural poverty.

2012 Insan Akademika All Rights Reserved

1.

Introduction

This study discussed the different causes of low agricultural output. In most of the poor countries of the world majority of the people live in rural areas and they earn their livelihood from agricultural sector. Agricultural division also plays a key role in the development of human civilization. This sector of different countries is affected by different causes that will lead to low agricultural output. Agricultural production will decrease due to many factors like climate change, the degradation of the land, low soil fertility, land ownership, illiteracy, lack of good quality of seeds and fertilizers, traditional farming methods, technological factor, lack of entrepreneurship in agricultural zone, weak agrarian structure, internal and international migration and droughts. Climate change in this regard disturbs the agricultural activity. For instance floods and heavy rainfalls greatly affect the agricultural output. A report that has been published recently in AAAS science magazine
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named climate trend and global croup production since 1980. In this report anonymous writer indicate that climate change greatly affected the agricultural production in many regions of the world. This report also shows the effects of temperature and rainfall on the agricultural production. Analysis of the report indicates that, since 1980, the agricultural productions has been greatly affected due to rise in temperature. So we can say that climate change has greatly impacted the agricultural production. The second most important factor is land tenure system that has also affected the production of agricultural sector. This system basically throws light on the relationship between land, owner and cultivator. In 2004 the Economic commission of Africa (ECA) studies, in which the investigator finds that there is a clear relation between suitable land policies and food security. They found that most of the land tenure problems that exist in any region especially in Africa have their source in the colonial period. Poor land tenure polices will lead to poor production. On private lands, tenure regimes have led to exploitation and mishandling of resources due to central user rights existing within individual land ownership. Literacy is another problem that effects the production of agricultural in economy. According to a well known Frick (1991), farming literacy can be defined as possessing knowledge and understanding of food and fiber system. An individual possessing such knowledge would be able to manufacture, investigate, and communicate basic information about agriculture otherwise he will not be able to do good job and as a result will lead to low agricultural productivity. Weak agricultural technology has many negative impacts on the productivity. The term technology means application of knowledge and tools accurately for achieving the envies goals and economic objectives. Thus for higher productivity it is necessary to follow this definition. In developing countries, farmers mostly use the old traditional ways of cultivation thats why their productivity is low. Thats why if we will not follow and apply the new techniques of production and keep owning old and traditional ways of cultivation then our production process will remain slow. Technology also bears a close link with land because land is scarce and cant be produce. This is the one of the reason of low agricultural output. In order to achieve a greater increase in agricultural productivity, the use of fertilizer is necessary. According to R. A. Olson (1990), the introduction of fertilizers has transformed many regions of naturally low productivity into agriculturally effective regions. Fertilizer provides the advantage of divisibility because they can be used according to the size of the farms. Fertilizer has shown very remarkable results on the productivity in past few years. On the other hand lack of fertilizers greatly impacts the productivity and due to their less use output can be low. Pests and diseases is another major reason that creates problems in the production of crops. Productivity can be low because of different types of pests and diseases. As a result the crops will be damage and production will be low. If pesticides are not used on proper time the crops will be damage that will lead to low agricultural productivity. Land degradation is a process in which the value of the biophysical environment by one or more amalgamation of human induced process acting upon the land. According to I.W Mudita (1999), land degradation is the most important environmental problem presently challenging the concept of sustainable development in many parts of the world. The main outcome of land degradation is a considerable reduction in the productivity of land. If the productivity of land will be reducing it will result in the reduction of agricultural output. This is the one of the reason of low agricultural output. On the other side, Ramdhani and Santosa (2012); and Santosa (2012) stated that the state of agricultural development need to consider an increase in agricultural output while maintaining the sustainability (environmental aspects). Deficiency in the water will create the drought problems. In latest years, water issues have been the focus of increasing international concern and contest. From 26 to 31 January 1992, the UN system sponsors the International Conference on Water and the Environment (ICWE) in Dublin, Ireland. The ICWE called for innovative approaches to the measurement, development and managing of freshwater resources. In addition, the ICWE provided policy guidance for the United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro in June 1992. UNCED highlighted the need for water sector reforms throughout the world. 344

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A drought is one of the dangers of global warming and due to this agricultural output is greatly affected. Stephen Devereux introduces an investigative outline for understanding the impacts of droughts and oods on rural livelihoods. He said that impact of drought in the results of Failures of production-based entitlement. We have to study the main problems that affect the agricultural output and what will be the effects of low productivity on the farmer socio-economic life. For this we have used the questionnaire method and collect the views of the people.

2.

Literature Review

Minton, et. al., (2001) investigate the link between agricultural production and rural poverty for Malagasy by quantitative economics study. Regression test have been used for the analysis. This study summarize that education is an important determinant of agriculture productivity. Batter education will lead to high agriculture output that will increase efficiency. They also investigate that diversification in high value crops contributes to increase welfare and presence of legal agricultural land have a little benefit for the productivity at the national level. Rental agreements are also shown to have a positive impact on efficiency and on equity. The results suggest that more secure rental contracts might be beneficial for poverty alleviation and for the agricultural sector. Authors conclude that on average, poor labor and poor labor activity will lead to decrease the efficiency. Shah (2000) investigate the two important relationship the first one is irrigation and agriculture productivity and second one is agricultural productivity and poverty alleviation in stage II of CRBC. He examines and discusses the socio-economic characteristic of the household and study the area before and after the construction of CBRC. For the analysis purpose two approaches have been used such as t-statistics and regression analysis. This study compare the per acre yield of different crops, area under cultivation, income, consumption and saving before and after the CBRC. The estimated results show that all relevant variables have increased significantly. Results show that variables have increased significantly after the implementation of CBRC. Thiruchelvam (2001) discussed the link between the agricultural productivity and efficiency of owner cultivator and sharecroppers. This study has analysis the issue of productivity efficiency between owner and share cropper. The result from study shows that there is strong difference between the productivity efficiency between these farmers. The sharecropper has lower efficiency and productivity then the owner cropper. The difference between these two is 1:3. So according to author sharecropping is an important issue of low agricultural output. Indian agricultural (2011) study the causes of low agriculture output by taking the country India as case study. Major causes are fertilizer abuse, reducing arable land, fragmentation of agricultural land, agricultural indebtedness, water waste, low soil fertility, and climate change and food wastage. These are the main issues that Indian agricultural sector is facing. The solution of these problems lies in science, technology and education. Although solution is lies in the research but western research cannot solve these problems in India. Thats why there is a need to look at acceptable Indian or regional options and to implement them in a purposeful way. Tenaw, , et. al., (2010) analysis the effects of land tenure and property right on agricultural productivity using Ethiopia, Namibia and Bangladesh as case study. They said that basic problem of low agriculture output is shortage of land and population pressure. The major focus of this paper is describe all the matters regarding land tenure system, its rights, agricultural productivity and effects due to change in climate. The results proved that proper land ownership policy is important for the majority of rural areas because their quality of life is totally dependent on farming. Besides that land administration departments of these countries should play their efficient role in ensuring proper land tenure and property rights.

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Nkamleu, et. al., (2003) discussed the changes in agricultural productivity in ten Subsaharan countries. The relative agriculture performance was measured by using data envelopment analysis. The data set of ten countries which include the 28 years periods 1972-99 mathematical programming methods were used to measure Malmquist indices of total factor productivity. It is found from the results that, during that period of time, total factor productivity has a negative impact in sample countries. The results suggest that, most of the poor performance of factor productivity is attributable rather to the technological change then technical efficiency change. In a nutshell, the pattern of performance which was given in this study clearly demonstrates the role of each component on the evolution of total factor productivity. Niyongabo (2003-04) studied the southwestern Rwanda and examines the degree to which farmer can improve agricultural productivity by the implementation of different agriculture principals. The study revolves around certain factors such as demographic pressure, deforestation, soil erosion and land degradation and these problems act as low agricultural output. These factors are interlinked and affected each other. The analysis from the study suggests that conventional agriculture or industrial agriculture may not solve the problem of food insecurity and improve environmental degradation. The main challenge to us is how to increase the productivity? The result of this paper tells us that we increase our agriculture output by human assets, social assets, physical assets and financial assets. Through these we can improve our productivity and environment. Mwangi (1995) studied the sub-Saharan Africans case study and found the factors related to low use of fertilizer will lead to low agriculture productivity. This study found that in SSA farmer will use low amount of fertilizers. Fertilizer that is used is affected by different policies, especially those that affect input supply and prices. The study finds that in SSA farmer will use low quantity of fertilizer because fertilizer that is used in SSA is imported so without subsidy farmer will pay high price for fertilizers. Price is high because transportation cost is high. Medium and short term, fertilizer subsidy can help to compensate for these cast increasing factors. While in long term the country must find the other ways to make right type of fertilizer availability at proper time, place and price. Martin (2010) studied the effects of weather change on the agriculture production and effects of internal and international migration on the production of the agriculture output. He found form the study that climate change will force the people to migrate from rural areas to urban areas. This situation will affect the agricultural production. Global warming is likely to decrease the challenges faced by the agricultural workers. However it is clear from the facts that previous policies are insufficient to cope up with current flow of migration from the agricultural sector due to change in climate. For this purpose combined effort is required from the host government, international community, and a commitment of resources towards developing and such inventive options in order to make rural sector more attractive. Ahmed , et. al., (2000) discussed the share of agricultural in the progress of country by taking Pakistan as case study. They said that agricultural sector is the largest sector of the country and it provides the raw materials to the other sectors especially it contributes to countrys economy. Besides this, they also proposed certain factors through which Agricultural sector can be promoted in future. For instance, they emphasized on the need to bring more land into production. For Pakistan, they recommended that the country should adopt more technological approaches and must rely on latest technical efficiency for the achievement of desired productivity and Agricultural growth in future.

Impact on the Socio-Economic Life of Farmer Basically a large portion of people from rural areas in developing countries rely on the agricultural sector for their fundamental necessities of life. According to the research reports in 2004, stated that the total contribution of agriculture in total employment in these countries constitutes 53% of the total labor force. While in Sub-Saharan Africa region, 60% of the economically active population was working in that sector. 346

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Now the most important question that arises in ones mind is that how the results in low productivity are influencing socio-economic lives of farmers? The answer to this question is very simple as it is obvious that low agricultural productivity causes negative impression on the economic condition of farmers which will further results a great disturbance in the living standard of a large number of people. Thats the basic reason, on the base of which we claim that agricultural productivity and life style of farmers are interrelated with each other or can say that they are directly proportional to each other because low agricultural productivity also cause low income level that will makes ones life (farmer) more difficult in coping up with todays inflation i.e. disturbing ones financial life completely. Thus in a nutshell we are summarizing the whole topic into one single line, if the agricultural sector is not contributing in a fruitful way then it will make the personal life of farmer inefficient.

3.

Methodology

We use the questionnaire methodology for the estimation. We collected the sample of 100 people and took their opinion. We ask some question about agricultural productivity. People take their great interest in that and they suggest that survey should be made about agricultural production and try to take some steps to increase the productivity. We collect opinion through questionnaire from farmers, landlords and education department that engaged in the agricultural sector. Different people give different suggestion; education department said that due to lack of education, productivity is low but in the other side farmers who are working in the field said that education is not necessary if you have experience about agricultural employment. So education doesnt matter. Land lords said that due to poor facilities our productivity is low and also due to unawareness. So we can say that different people have different observations about these problems. We apply the Chi-Square test and ANOVA test for the estimation of the results by using the software SPSS version 17.

4.

Results and Discussion1

According to Question 1, agricultural sector play a key role in the economy. 96% agree from this statement and 4 % people disagree this opinion. Majority of people said that it is the key sector of the economy. And economys growth depends on this sector. 46 % people believe that large numbers of agricultural families are operated by feudal lords. 4% people never want to give their views about this statement and 50% denied this statement and said that not only feudal lord operate this sector but also other small farmer are there who are work in this sector. Participation of Goverment is necessary for the growth of any sector and in our survey 84% people said that Goverment participation is necessary. Goverment should make plans for this sector. 1% never wants to give their views and 15 % people said that Goverment participation is not necessary. So if the Goverment participation is limited then productivity is low. This is the one of the reason of low productivity. Poor transport system causes huge loss of agricultural productivity. 86% people agree this statement they said that due to poor transport system we face huge loss of our products. 6 % people neutral about this statement. And 8% people reject this testimonial and said that poor transport system damage the products but not the level of productivity. According to question 5 due to formal ways of cultivation productivity is low. 77% people agreed this opinion and said that formal ways of cultivation are big hurdle in the high productivity of agricultural output. 19% reject this estimation and 4% become neutral. 29% people said that formal ways of cultivation should be used but 69% reject this opinion and said that formal ways of cultivation should not be used because this

Table should be provided by principal author on request.

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is the big obstacle in the way of improvement of this sector. 2% never want to say anything about this question. Due to uncertain weather condition productivity is low. 88% people agreed this testimonial and said weather condition is uncertain due to this productivity is low. 11% people differ this report and said weather condition is not affected the agricultural productivity. 1% becomes neutral. Agricultural production is also depending on the financial condition of the farmer so we ask this question from farmer that is poor condition of farmer is cause of low productivity? 97% people agree this testament and said that weak financial condition is cause of low productivity and 3% refuse this statement. According to question 9, Low literacy will create lots of problems in agricultural sector. 77% people are satisfied from this assumption and said low that education rate is a big barrier in the improvement of this region of the economy. 14% disagree from this assumption and 9% become neutral. Next question that we asked from farmers is that should Goverment launch programs to literate farmers for modern technology? Majority of people agreed from this view. That is approximately 95%. And said that Goverment should make policies for the illiterate farmer and give them awareness about the modern use of technology. Is technology has close link with agricultural productivity? 95% people agreed with this assumption. 1% becomes neutral and 4 % disagreed. Majority of famer think that it has close link with the productivity. According to next question, is natural disaster like flood streams etc disturb production? 94% people think that this is the great problem in the way of progress. They agreed with this view. 4% disagreed and 1% becomes neutral. Land tenure system create disturbance. 87% farmer said that this assumption is true, that problem create disturbance. 10% people disagreed to this assumption. And 3% never want to give their views. Question 14 is that fertilizer, good quality seeds and pesticides affects productivity. 96% people agree with this assumption and said that good quality of fertilizer, seeds and pesticides increase the output. They have positive impact on the productivity. 3% farmer disagreed from this statement and 1% becomes unbiased. According to our survey draught is natural problem that decrease the production. 98% people said that this is true. Draught is a natural phenomenon that destroys the land and decrease the productivity. 1% population disagreed from this report and 1% becomes impartial. Due to land degradation productivity is continuously decreasing. 92% people agree from this testimonial. And said the production capacity of land is decrease day by day. Thats why our agricultural efficiency is constantly declining. 6% people disagreed from statement and said that if we use efficient technique of production then this problem doesnt occur. 2% population becomes unbiased. Next question of the survey is that lack of capital is cause of low output. Majority of people agree from this statement that is approximately 94%. They view that capital is necessary for any field of production similarly it is essential for agricultural production. If we have lack of capital then our production is obviously low. 4% population disagreed to this statement and 2% become neutral. According to question 18, Agricultural machinery increase agricultural productivity. 94% population is satisfied with this observation and said that we make our production efficient by using the agricultural machinery. 5% population disagrees from this assumption and 1% becomes neutral. Contamination in fertilizers, pesticides and seeds cause low yield. 56% people agreed from this report, 37% disagree and 7% become neutral. In question 20 we said that unawareness about proper use of fertilizers damages the crops. 70% population agreed from this assumption and said that farmers dont have proper information about good quality of fertilizers thats result in low productivity. 25% people not in favor of this assumption and 5% becomes neutral. 348

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According to question 21, Limited sources of irrigation badly affect the agricultural yield. 85% population is in favor of this question and said that water is necessary for crops. If we have shortage of water resources then our output is obviously low. 10% farmer denied this assumption and 5% become neutral. Last question of our survey is that Goverment should make practical policies for agricultural sector? 93% farmer is in favor of this statement and said that Goverment should play their role and make policies for the high productivity of agricultural sector. 7% population is not in favor of this question and said that if owner of land make efficient policies and apply well-organized technique then there is no need of Goverment policies.

5.

Conclusion and Recommendation

Agriculture is the major sector of the economy and would stay important for quite some time. The higher growth rate for the agriculture sector is very important for a fast overall improvement of the economy, macroeconomic constancy, employment generation, and decrease in rural poverty. In our survey farmer gives us different causes of low agricultural yield. Low education rate, unawareness about farming techniques, limited water resources, uncertain weather condition, poor Goverment policies, natural disaster, lack of capital and poor farming condition is responsible for the low output. In our survey report we feel that developing countries are agro-base economy as a result country growth is depending on agricultural sector. People views that mostly this sector is operate by feudal lords. And they have monopoly over this sector, they make such policies that are efficient for them but not for the economy. Due to this problem our productivity is low. Natural disaster and climate change are such problems that cannot be solved. Draught, uncertain weather form and natural tragedies like flood, storms etc disturb productivity. There problems are unexpected so we cannot find the solution of such problems. The associations between land tenure, agricultural investment and manufacture have been deeply studied in many surveys as a basis for the development of superior land strategy in support of food security. The land tenure problems that influence food security include demonstration of unequal distribution of land, suboptimal operation of land and insecure tenure. Land tenure system should be made efficient this will result in good productivity. Education department that engaged in the agricultural sector said that low education rate and unawareness about farming techniques is responsible for low output. Farmers are unaware about efficient farming technique, proper use of fertilizer, good quality of seeds and pesticide. Thus we can say that due to unawareness our production is low. For the removal of this problem Goverment should launch programmers and try to literate the farmer and give them awareness about the professional and efficient techniques of production. On average unawareness, poor education, lack of capital and uncertain condition are responsible for low productivity. Low productivity will affect the farmer socio-life. On the whole a large portion of people from rural areas in developing countries depend on the agricultural sector for their basic necessities of life. Now the most vital question that arises in ones mind is that how the low productivity is influencing socioeconomic lives of farmers? The answer to this question is very simple as it is clear that low agricultural productivity causes negative impression on the economic condition of farmers which will further results a great disturbance in the living standard of farmer. Thats the basic reason, on the base of which we say that agricultural productivity and life style of farmers are interconnected with each other or can say that they are directly associated to each other because low agricultural productivity also reason of low income level that will makes ones life (farmer) more difficult in coping up with todays inflation i-e disturbing ones financial life completely. Thus in a nutshell we are summarizing the whole topic into one single line, if the agricultural sector is not contributing in a fruitful way then it will make the personal life of farmer inefficient

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References
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Appendix

Questionnaire
Name Family size : : Age Earning members : :

No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Question Agricultural sector plays a key role in any economy Large numbers of agricultural families are operated by feudal lords. Due to limited participation of governments in agricultural sector it is not properly enhanced. Poor transport system causes huge loss of agricultural. Due to formal ways of cultivation agricultural yield is low. Formal ways of cultivation should be used? Uncertain whether condition is a problem of low agricultural yield. Poor condition of farmers also effect agricultural yield. Low literacy will create lots of problems in agricultural sector. Goverment should launch programs literate farmers for modern technology. Technology has close link to agricultural productivity. Natural disaster like flood streams etc disturb production. Land tenure system create disturbance. Fertilizer, good quality seeds and pesticides affects productivity. Draught is natural problem that decrease the production. Due to land degradation productivity is continuously decreasing. Lack of capital is cause of low output Agricultural machinery increase agricultural productivity. Contamination in fertilizers, pesticides and seeds cause low yield. Unawareness about proper use of fertilizers damages the crops. Limited sources of irrigation badly affect the agricultural yield. Goverment should make practical policies for agricultural sector?

SA

UD

DA

SDA

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