Elahi et al. Ind. J. Pure App. Biosci. (2021) 9(2), 127-133 ISSN: 2582 – 2845 Available online at www.ijpab.com

DOI: http://dx.doi.org/10.18782/2582-2845.8622 ISSN: 2582 – 2845 Ind. J. Pure App. Biosci. (2021) 9(2), 127-133

Review Article

Peer-Reviewed, Refereed, Open Access Journal

A Short Review on Economics Analysis of Crops Production

Muhammad Ehsan Elahi1*, Noman Latif1, Nabila Inayat2, Muhammad Jamil1, Amanullah Khan1, Muhammad Arshad Khan1, Muhammad Kashan1 and Muhammad Adeel Ahmad1 1Arid Zone Research Centre (AZRC, PARC), Dera Ismail Khan-29050-Pakistan 2Government Girls Degree College, Kulachi, Dera Ismail Khan-29050-Pakistan *Corresponding Author E-mail: [email protected] Received: 9.02.2021 | Revised: 13.03.2021 | Accepted: 20.03.2021

ABSTRACT From previous research studies the economic analysis of crop production, a majority of farm households are unable to comply with their crop income requirements. Another significant factor which contributes significantly to the disposable income of these farm households has been described as income from off-farm sources. Previous studies have proposed that the ability of off- farm sources to reach domestic expenditure should be further exploited. The technological productivity of crops should also be increased to provide farmers with more profits. Previous studies have also shown various important aspects relevant to the economic study of the production of food grain crops. The economics of crop cultivation, including the cost of input usage and crop profitability analysis of output. To calculate per acre input and output, econometric models should be applied. The article focused on the factors limiting crop productivity, the performance of high yielding varieties, the comparison of different crop varieties, the current crop production technology, the economic analysis of different crops and the performance of national strategies for growth.

Keywords: Crops production, Economics analysis, Profitability, Output.

INTRODUCTION Wheat are any other food grain varieties i.e. Review of relevant literature provides basis for rice, wheat and maize is presented. A number meaningful research to be conducted. It of researchers explored different economic highlights the background of the issue under aspects of various crops in general and research. Moreover, valuable information on particularly of wheat crop. research techniques (methodology) is gained Relevant Literature on Economics of Crops from the earlier research reports. In addition, a Azhar and Ghafoor (1988) carried out a study detailed review of the previous work done by of the effect of education on technical the researchers about the economic analysis of efficiency for four major crops in Pakistan.

Cite this article: Elahi, M. E., Latif, N., Inayat, N., Jamil, M., Khan, A., Khan, A.M., Kashan, M., & Ahmad, M. A. (2021). A Short Review on Economics Analysis of Crops Production, Ind. J. Pure App.

Biosci. 9(2), 127-133. doi: http://dx.doi.org/10.18782/2582-2845.8622

This article is published under the terms of the Creative Commons Attribution License 4.0.

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Elahi et al. Ind. J. Pure App. Biosci. (2021) 9(2), 127-133 ISSN: 2582 – 2845 The crops considered were the high yielding more homogeneous groups of farmers can varieties of wheat and rice and the two reduce this gap. Recommendations should be traditional crops in Pakistan, namely cotton based on crop rotations, access to irrigation and sugar. An engineering production function water and the distribution of newer high were estimated using the 1976/77 cross- yielding wheat varieties. sectional data for the entire irrigated region. A Tripathi (1993) examined the modified Cobb-Douglas function combined economics of high yielding variety (HYV) land, labour and intermediate inputs with wheat cultivation for three farm size groups farmer's education introduced as a shift for middle hill and valley farms in Tehri variable. The least square estimates suggested Garhwal district, Uttar Pradesh, India. Data that the effects on output of cross-farm were collected from a sample of 120 farms for variations in labour use were not significant; 1987/88. The average operational cost was Rs and that education became important only 2431/ha for middle hills farms and Rs 2506/ha when the possibility of 27 drawing from on valley farms. Bullock labour accounted for historical knowledge was remote, as was the the highest percentage of operational cost case with Green Revolution crops. followed by manure, fertilizer and seeds. Akhtar (1988) conducted a survey of Santha (1993) studied the economics wheat production in the district Multan, of rice cultivation in India and compared the Pakistan Punjab, in the 1984/85 seasons. The production cost, input use and profitability of survey identified major factors limiting wheat rice production in three seasons. He found that productivity and the profitability of low and the Viruppu crop performed better in terms of high-yielding wheat technologies in the cotton benefit cost ratio and cost of production. zone of the Punjab. Policy implications were Sreeja and Chandrabhanu (1995) identified for agricultural extension and evaluated and identified the economic benefits research. Multan is one of the Punjab's leading of fertilization practices for upland rice cotton growing areas and 150 randomly production. They found that slope of demand selected farmers were involved in the study. curve was greater than the slope of supply Questions were posed regarding planting time, curve of paddy; price structure of paddy in land preparation, fertilizer usage, irrigation Kerala, India. Projected values based on the and previous crops in specific fields. The main model showed that instability of supply factors responsible for differences in wheat behavior to adjust changes in price should be productivity were use of phosphorus changed to reduce the time lagin achieving fertilizers, certified seed and the planting of equilibrium price and output. wheat after cotton cultivation. The net returns Parikh et al. (1995) measured the of low and average yielding fields barely economic efficiency in Pakistan agriculture covered variable costs and the net returns in sector using econometric techniques. Their high yielding fields were positive. views differed from those of Khan and Maki Results emphasize the importance of (2009) and found that small farms were more cost-reducing technologies if wheat is to efficient than large farms. Dash et al. (1995) compete with alternative crops such as studied per hectare cost and return and level of sunflowers, soyabeans and spring maize. input used in production for summer rice and Farmers in cotton areas normally obtain observed that on average, per hectare cost of average wheat yields of 2.5 t/ha but the cultivation was Rs.17113 and average yield average yield was 2.2 t/ha in 1984/85, which per hectare was about 56 quintals, which was a poor year. However, the feasible varied from 52.71 to 58 quintals on sample economic yields for the area were3.5 t/ha. This farms. The average gross and net returns per implies a yield gap of some 30% to be filled hectare were Rs. 18923 and Rs. 1920, by the application of known technologies. respectively. Developing appropriate recommendations for Copyright © March-April, 2021; IJPAB 128

Elahi et al. Ind. J. Pure App. Biosci. (2021) 9(2), 127-133 ISSN: 2582 – 2845 Roy and Talukder (1995) analyzed the relative linear, semi-logarithmic, and double economic performance of apotato- and a logarithmic where Cobb-Douglas production wheat-based cropping pattern in the Chandina function (4) revealed that farmers lacked Thana, Comilla31 District, Bangladesh. Two adequate experience in improved farming villages were studied which practised the technologies. It further showed an average cropping patterns of potato-Boro-T. Aman and productivity of0.994 tons per hectare which wheat-T. Aus-T. Aman (Boro, Aman and Aus was low, compared to potential rice yield of 2- are varieties of rice planted in different 3 tons per hectare. seasons). A total of 40 farmers (20) from each Young et al. (1998) described that cropping pattern) were surveyed during the both government and nongovernmental crop year 1992/93. Total gross return per institutions should devise appropriate policy hectare from the potato cropping pattern was about production systems i.e. marketing, about twice that of the wheat cropping pattern. transport storage, production costs, marketing Profitability analysis of individual crops can margins, consumption, exports, capacity of be help fulin short run decision making but land and water resources to increase over the longer run account needs to be made production. for the profitability of crop combinations and Ishida and Asmuni (1998) in Malaysia rotations on specific plots of land inspecific presented an Economic analysis of rice areas. cultivation in District Swat. Economic analysis Maredia (1996) employed an of rice production so as to trace the impact of econometric approach using international and agricultural modernization on paddy income. national yield trial data to estimate a spillover They concluded that farm mechanization had matrix for wheat varietal technology. The positive impact on paddy income. global spillover matrix was estimated based on Gamba (1999) studied the best known international yield trial data from 1979-80 to wheat varieties by both small-scaleand large- 1987-88, that include 195 international trial scale farmers were Mbuni, Nyangumi, Fahari, locations and 209 wheat varieties. The Kwale and Tembo, while Mbuni and Kwale locations were classified across countries were the varieties most widely grown. The using the CIMMYT's wheat mega recent varieties suchas Duma, Mbege, and environment system and varieties were Ngamia were hardly known/grown by farmers classified by both their environmental and reflecting the lack of seed of the new wheat institutional origin. The model gave good varieties. The main sources of wheat seed (old explanatory power and confirmed the location and new) for both the small-scale and large- specificity hypothesis, at least, for the varieties scale farmers were other farmers. Farmers' developed by national programmes (NARS). wheat seed management practices were on the The spill over matrix shows that NARS whole similar between the small scale and varieties developed in the `home' environment large-scale farmers. But significantly more generally perform better on average than large-scale farmers had separate fields for varieties developed in other mega seed, selected seed at harvest and stored seed environments. The country-level 32 analysis, separately than did the small-scale farmers. however, indicated that CIMMYT germplasm The adoption of new wheat varieties was did not did so well in some sub-environments, significantly higher in the high potential zone, such as the irrigated short-duration in Uasin Gishu District and by large-scale environment. The results of the spill over farmers than in the low potential zone, in matrix had implications for the design of crop Nakuru/Narok districts and by small scale breeding programmes both at the national and farmers. The logit model showed that international levels. household size and seed retention period had a Dipeolu and Kazeem (1997) in negative impact on adoption of new wheat Nigeria estimated three functional forms i.e. varieties whereas farm size, commercial wheat Copyright © March-April, 2021; IJPAB 129

Elahi et al. Ind. J. Pure App. Biosci. (2021) 9(2), 127-133 ISSN: 2582 – 2845 price, years in wheat farming and seed system of cultivation. The progressive farmers selection had a positive impact. harvested 20% higher yield than Negatu (1999) analyzed to assess the the traditional system. However, farmers impact of improved wheat varieties adopting advanced technology had and their recommended fertilizer rate on small 61.92%-76.07% higher yield as compared to farmers' food status. The analysis the traditional system. The study was based on the primary data collected in concludes that the investment in modern 1995 from 192 farmers in two woredas technologies proportionately enhanced in the central highlands of Ethiopia. The output and net income. annual production of cereals, pulses and Haq et al. (2002) using Cobb-Douglas oilseed crops (all field crops) grown by the type of production function technique sample farmers were used to measure investigated the relationship of farm size and the food status of the households. This was input use and its effect on production and done by comparing the total grain food gross/net incomes in potato. Theyconcluded production in calories with the recommended that labour, seed, farmyard manure, nitrophos calorie consumption of 243 kg of and labours were the factors significantly cereal-equivalent per adult annually. The contributed towards output. association of farmers' food status with Lohano and Mari (2005) assessed the input- the adoption of ET-13 wheat variety in output relationship of onion crop in Hyderabad Moretna-Jiruworeda and Israel wheat district, Sindh, using Cobb-Douglas variety in Gimbichuworeda, and the use of production function and found that input- their recommended fertilizer rate was output relationship of onion crop was analysed employing bivariate statistics. The characterized by constant returns to scale. analysis showed that food status of Ahmad, et al. (2005) determined the farm households in Moretna-Jiru was cost and revenue for potato crop and compared significantly associated with the adoption of it for two districts of Punjab namely Okara and 36ET-13, while in Gimbichu the association of Kasur. They found significant difference in the adoption of Israel with food status was not cost and revenue in these districts. They also significant. In both woredas the users of the considered funds availability, seed quality and recommended fertilizer ratehad significantly stability in price as responsible factors to higher food status than the nonusers. increase production of potato crop and its Soni (2000) conducted a study of the profitability. impact of improved wheat production Arifullah (2007) noted that yield technology, including high yielding varieties potential was low (13-23%) as compared to with cultural practices, in Sagar world average yield for various crops in district, Madhya Pradesh, India. Yield, input general and particularly for IRRI rice, onion, level and net return were compared wheat, sugarcane and chickpea. He suggested for three technology options: (i) full package: decreasing the cost of production along with national front line demonstration increasing per hectare yield. plots (FLD); (ii) progressive farming (adjacent Hussain and Khattak (2010) made the plots of FLD participating economic analysis of sugarcane crop in district farmers); and (iii) traditional farming (farmers Charsadda (Khyber Pakhtunkhwa), using in FLD villages). Data relate to the primary data collected from100 respondents years 1993/94, 1994/95 and 1995/96. and Cobb-Douglas production function. They Demonstration fields produced significantly noted that area under sugarcane crop, tractor higher yields than the farmers' practices. hours, fertilizer, seed, labour and pesticides Farmers harvested 29.81q/ha and 14.17 were significant variables affecting sugarcane q/ha under irrigated and un-irrigated crop district. conditions, respectively, with the traditional Copyright © March-April, 2021; IJPAB 130

Elahi et al. Ind. J. Pure App. Biosci. (2021) 9(2), 127-133 ISSN: 2582 – 2845 Elahi and et al. (2015) assess the cost and of life and its cultivation is most closely returns (profit) of Rice cultivation in district connected with the socioeconomic conditions Dera Ismail Khan. The results showed that the of food growers. Any improvements in wheat average cost per acre was Rs. 31,040 and cultivation will ultimately improve the average production (output) of rice was standard of living of the local community and estimated to be 1840 kg per acre. Therefore, further will have a positive impact on sources the gross return of rice production was Rs. of income, labour force and capital, 44468 per acre. The study, therefore, indicates employment, labour distribution within the that there is positive influence between return villages, food grain marketing, consumption price and output of rice whereas on the other pattern, price fluctuations, poverty alleviation, hand the input cost of rice had negatively self-sufficiency, strengthening fertilizer affected the rice production. business, reduction in prices of food grain Suggestions Based on the findings of this maden commodities, farm mechanization, study reduction in food grain shortages, extension in Based on the findings of studies, the following suggestions are made: tractors and threshers market, prevailing 1) The government should make efforts to brotherhood and increasing livestock bring more area under wheat crop cultivation production. The research showed that what are for increasing food crop production. characterized by increasing returns to scale i.e. 2) Information (awareness) should be given to food grains’ output increases more than their the farmers to grow improved varieties rather inputs. traditional varieties. The farmers should grow the most profitable varieties of wheat REFERENCES according to the climatic conditions of the Agriculture Extension Department, Govt of district. Khyber PakhtunKhwa, Khan, D. I. 3) The farmers should use only recommended (2015). seed, which is healthy, desired resistant and Agriculture Statistic Department, Govt of standard. Khyber PakhtunKhwa, Khan, D. I. 4) Timely and balanced fertilizer application (2015). schedule should be followed. Ahmad, B., Hasan, S., & Khuda-Baksh & 5) Proper storage facilities should be provided Ahmad, W. (2005). Profitability and to the wheat growers. various constraints in potato 6) Interest free loan facilities should be cultivation. Pak. J. Agric. Sc. 42(3), provided to the farmers. 68-73. 7) The agriculture research stations should Akhtar, M. R. (1988). Farmers' Low and High play active role in solving farmers’ problems. Yielding Wheat Technologies: It should set up a good relationship with the Cotton Zone of the Punjab. Pak. J. of farmers. It should point out the causes of low yield and suggest measures for improvement. Agri. Res. 9(3), 321-324. Furthermore, it should arrange seminars and Arifullah, S. A. (2007). Pakistan Crop Sector: programmes to aware the farmers about the an Economic Evaluation, Ph.D. agriculture updates. It should work free of Thesis, NWFP Agri. Uni., Peshawar. political interference. Azhar, R. A., & Ghafoor, A. (1988). Education 8) Multi-cropping system should be adopted and Technical Efficiency in Pakistan's in the research area to utilize the holdings and Agri. Pak. Dev. Review, 27(4), 687- increasing food grain productivity so as to sell 695. them in terminal markets. Barkley, A. P. (2008). “Kansas Wheat Breeding: An Economic Analysis” CONCLUSION Kansa, Khan, D. I., State University From the research studies it is clear that food Agri. Exp. Station and Coop. grain especially wheat crop represents the way Extension Service. Copyright © March-April, 2021; IJPAB 131

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