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Comparative analysis of profits of paddy cultivation under owner - cultivated land and tenant-cultivated land

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Author Affiliations

  • 1Department of Economics, Faculty of Commerce and Management, Eastern University, Sri Lanka
  • 2University of Colombo, Sri Lanka

Int. Res. J. Social Sci., Volume 7, Issue (6), Pages 1-10, June,14 (2018)

Abstract

The economy of Batticaloa district depends mostly on agriculture and fishing for livelihood. In Batticaloa district farmers use approximately 61,321 hectares of paddy land in out of total land to cultivate paddy seed. Nevertheless, not all of them own paddy land for cultivation. Hence farmers, who encounter the shortage of paddy land, have to rely upon tenancy givers to access paddy land. Even though, in Batticaloa district, most of the tenancy agreements do not have a form of written contact and associate mostly with verbal agreements without any legal evidence. Thus, in the prevailing situations, farmers who have been engaging in either owner-cultivated land or tenant-cultivated land. In this circumstantial, there may be distinction in profit earning of paddy cultivation among both owner- cultivated land tenant- cultivated land. The main objective of this study is to examine the difference of profit between tenant – cultivated land and owner- cultivated land. The study is based on primary data, which was gathered during the 2015/16 paddy Maha season by a structured questionnaire. The study utilize four hundred sample of farmers were selected using both snow ball sampling and random sampling technique. To investigate the objective, OLS regression analysis was employed using Cobb Douglas production function. The results expose that, profit of paddy on tenant-cultivated land was not less compare to owner-cultivated land as well as there was no significance difference between owner-cultivated land and tenant-cultivated land in term of profit as there was a slight difference between tenant-cultivated land and owner- cultivated land in term of profit. Nonetheless, the study found that owner cultivated land is slightly higher in input use as well as cost of inputs also higher than tenant- cultivated land.

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