Optimal Allocation of Resources in
Smallholder Agriculture by Means of Goal Programming: Application in North
Bihar
Sarla Pareek1, Purnima
Sinha2*
1Center for Mathematical Sciences, Banasthali University, Banasthali,
Rajasthan-304022, India
2L. N. Mishra College
of Business Management ,Muzaffarpur
Muzaffarpur-842001, India.
*Corresponding
Author: psarla13@gmail.com; purnimasinha04@gmail.com
ABSTRACT:
This paper presents a goal programming (GP)
approach for optimal crop combination under limited land resource for
smallholder farmers of north Bihar. The main objective of this paper is to
developed, apply and evaluate goal programming model that aims at achieving
multiple goals of the smallholders. Three basic goals of the smallholders considered
in the study were: providing food for the family throughout the year,
accumulating monetary income and ensuring minimum use of hired labour (by efficient utilization of family labour).
Primary data were collected, during the 2010 -farming
season, from two hundred and sixty smallholder farmers who were selected
through multi-stage sampling technique from north Bihar of India. Descriptive
statistics were used to describe the socio-economic characteristics of the
smallholders. More specifically, weighted and
lexicographic goal programming techniques were employed to determine optimal
crop combination .Twenty five crop combinations were simultaneously entered
into WGP and LGP model. Out of which seven crop combinations were found to be
optimal one as they were satisfying all the above mentioned goals of the
smallholders. These crop combinations were Wheat/Potato, Wheat/maize/Potato, Wheat/Pulses/Potato,
Wheat/Maize/Pulses/Potato, Wheat/Maize/Pulses/Tilhan,
maize/Pulses/Potato, Maize/Potato/Tilhan.
KEYWORDS: Agriculture, smallholders, resource
allocation, weighted goal programming, lexicographic goal programming
INTRODUCTION:
In small-scale agriculture, the farming
system integrates both production and consumption activity. In both small and
large production resources are allocated to attain various goals. Low-resource
farmers, like other decision makers, are goal oriented in the sense that they
manage the resources at their disposal in an attempt to achieve a set of
desired goals [5]. It is general assumption of the economists that the limited
resources are allocated in such a way that profit can be maximized. In
smallholder agriculture, farmers can desire to maximize profit, but at the same
time maintain or conserve the land for future generations, maximum utilization
of family labour can also be important. Better
predictions can be made regarding producer’s actions when multiple goals are
considered [1].
Therefore multiple
goals of smallholders need to be taken into consider in research. Some of goals
of smallholder may be complementary while others may be competitive. “Utility”
can be achieved through attainment of the goals.
Utility is defined as the satisfaction one receives from consuming a
good or a service or engaging in some activity. Many different goals besides
maximizing profit or minimizing the cost of production can add to the utility a
smallholder receives from an activity. Therefore the concept of Utility
maximization rather than profit maximization is crucial for smallholders in
agriculture. By having multiple goals, smallholder is assumed to satisfy as
many goals as possible. The producers first try to the most important goal or
goals, and then less important goals are pursued.
The objective of the study is to determine optimal crop combination
under limited land resources to meet the goals of the smallholder of the study
area. Three goals which had been taken for analyzing the optimal crop
combination are: i) Minimum food production (To
have Minimum food from farming throughout the year), Income for satisfying daily minimum requirement (To have enough monetary
income for satisfying daily minimum needs), Minimisation
of hired labour( To minimize the use of hired labour
through maximum utilization of family labour).
On the basis of these objectives the optimality of the system had been
assessed. The production system are said to be optimal only if it is capable of
achieving aforementioned goals.
The application of Goal programming in the solution of problems in
agriculture planning was studied by different researchers.Charnes
et al. [3] discussed executive compensation method which contained the roots of
GP.Charnes and Cooper[4]
devised a procedure to incorporate multiple objectives within the Linear
Programming framework. Their approach involves use of positive and negative
deviational variables that add to or subtract from constraints to remove the
infeasibilities. The optimal solution is the one which minimizes the sum of the
deviations.Ijeri [8] introduced the concept of
pre-emptive priorities in which Lexicographic ordering of goals was
incorporated in Goal Programming model. Goals are grouped into various priority
levels and program results are based on the condition that lower priority goals
cannot degrade the solution of higher priority levels.Lee[9]
modified the simplex
method necessary to solve ‘priority’ linear programming models.Bazaraa
et al[2] formulated a multi-regional single time period linear goal programming
model for agricultural planning in a developing economy. In addition to
specifying different levels of input and output for each activity, explicit
crop interdependencies which account for rotational requirements has also been described.Gass [6] explains how a worthwhile link can be
established between the Analytical Hierarchy Process (AHP) and GP. In fact, the
weights derived from the pairwise comparison of AHP
can be incorporated directly into a WGP model.Tamiz
et al [13] presented a review of the current literature on the branch of
multi-criteria decision modeling known as Goal Programming (GP).In depth
investigations of the two main GP methods, lexicographic and weighted GP
together with their distinct application areas is reported. Romero and Rehman
[11] modeled a real decision-making problem in agriculture involving several
objectives and goals through the use of goal programming formulation and its
variants.
2.Description of the study area:
Situated
in Northern part of India, the state of Bihar has a geographical area of about
94.2 thousand square km. It is naturally divided by river Ganges into two
parts, the north Bihar and the south Bihar. With an area of 53.3 thousand km
North Bihar has been divided into two main agro- climatic zones Zone-I( North West Alluvial Plain), Zone- II( North East Alluvial
Plain). The climate of Bihar is mostly sub-tropical as it is located between 25
to 27 degree North latitude. The soil of the northern plain consists mostly of sandy
loam to heavy clay. However the majority type
belongs to loam category which is good for crop cultivation. The natural
precipitation varies from 990 to 1700 mm.
There
are mainly two crop seasons in the state- Kharif and
Rabi. Rice, wheat and pulses are grown in all the districts however the choice
of the crop and crop rotation varies across the agro climatic zone. Food-crop production remains a major component of all production
activities in the agricultural sub-sector of Bihar. Food-crop production comes under
different agricultural systems, most commonly as mixed farming, mixed cropping
or mono croppingFarms are variously referred to as
smallholder farms, small-scale farms, low-resource farms or small farms. About 94 per cent of the crops grown by all size holdings
belong to the food grains category. Rice and wheat, which together account for
about 83 per cent of the cropped area, dominate the cropping pattern.
In Bihar, smallholder farmers generally practice subsistence farming
where they need to produce a continuous, reliable and balanced supply of foods,
as well as cash for basic needs and recurrent farm expenditure. These farms are
characterized by low level of operation, illiteracy of operators, and a labour intensive production technology. There is also
complete reliance on household resources. It is also believed that a sizeable
proportion of farm output is retained for family consumption and planting
purposes. In the absence of adequate technological inputs to increase
agricultural productivity through technical innovations, the smallholders
resort to some other strategies to improve their chances of at least providing
enough food for themselves. In addition to an intensive and more frequent
cultivation of the farmlands which are subdivided into very small plots the
farmers adopt a multi cropping system to maximize returns from every unit of
land. Also, crop choice is concentrated on those ones, which involve less
expense in materials and labour input but promise
higher productivity.
3.Methodology:
Sampling technique has been employed for analysis
of the study.The population of the study consists of
all smallholder farmers of north Bihar. In this study smallholder is defined as
the farmer who have land less than two hectare. The basic sampling unit for the
study is the Household. The list of food crops farmers compiled by the
agricultural officer of the selected villages formed the sampling frame for the
study. Keeping the fact in view that a large segment of the population is
illiterate Interview method is adopted for collecting the data. Frequent
interviews were conducted during 2010 production season for over 6 months
period which started in November 2010 and lasted till March 2011 after all the
crops were harvested for collecting the data. The socio- economic
characteristics of the farmers and production activities in terms of input,
output, and their prices constitutes the bulk of the data collected.
The sampling technique employed is the
Multistage Cluster sampling technique. The whole North Bihar is divided into
different clusters on the basis of district. Among these clusters one cluster
has been selected at random. The selected cluster is further divided into
different blocks. From these blocks thirteen blocks are randomly selected.
Lastly from each block 20 farmers are selected randomly, giving a sample size
of 260 farmers.
4.4 Variables of the model:
The variables used in the WGP and LGP models
are:
X1=Rice in kharif,
X2=Wheat in rabi, X3 =Til
in kharif, X4=Maize in rabi,
X5=Pulses in rabi , X6=Potatos
in rabi
X7=Tilhan in rabi, X8=urd
in kharif
4.5Crop Combinations to be entered in the
model:
On the basis of crops most frequently grown
by the smallholders of the study area, 23 crop combinations have been entered
in the model. These crop combinations are: Wheat/Maize, Wheat/Pulses,
Wheat/Potato, Wheat/Tilhan, Wheat/Maize/Pulse, Wheat/Maize/Tilhan, Wheat/Pulses/Tilhan, Wheat/Maize/Potato,
Wheat/Pulses/Potato, Wheat/Maize/Pulses/Potato,Wheat/Maize/Pulses/Tilhan,
Wheat/Maize/Potato/Tilhan,Maize/Pulses/Potato,Maize/Pulses/Tilhan,
Maize/Potato/Tilhan, Maize/Tilhan, Maize/Pulses,
Maize/Potato,Pulses/Potato,Potato/Tilhan,Pulses/Tilhan,Rice/Maize,Rice/Urd,Rice/Til.
5. CONCLUSION:
Out of twenty five crop combinations only four crop combinations could
be developed for kharif season. Crop combinations of kharif seasons entered in both LGP and WGP models are
Rice/Maize, Rice/Til, Rice/Urd,
and Rice/Til/Urd. All the
crop combinations of this season invariably include rice as one of the crops.
It is quite obvious as rice is a major part of the staple diet of the
smallholder. Results of the both model do not find any crop combination of the kharif season as an optimum one.
Twenty one crop combinations have been developed for rabi season. Among them seven crop combinations are
found to be optimum. Optimal crop combinations of rabi
season achieving all the three goals of the smallholder for WGP model are
Wheat/Potato, Wheat/maize/Potato, Wheat/Pulses/Potato,Wheat/Maize/Pulses/Potato, Wheat/Maize/Pulses/Tilhan,maize/Pulses/Potato, Maize/Potato/Tilhan.
Ms- excel solution of wheat/ Potato crop
combination of rabi season suggest to grow wheat at
0.77ha and potato at 0.58 ha.Values of all
deviational variables of objective function are zero which means all three
goals have fully been achieved. Moreover, there is an over achievement in
minimum food requirement and minimum income requirement goal by 18.38 qt and
Rs. 4131.34 respectively. The solution of wheat/Maize/ Potato crop combination
of rabi season suggests to
grow only wheat and potato at 0.76 and 0.58 ha of land. There is an over
achievement of minimum food requirement and minimum income requirement goal by
18.38 qt and Rs. 4131.97 respectively. The solution of wheat/Pulses/ Potato
crop combination of rabi season says to grow wheat,
pulses and potato at 0.11, 0.73 and 0.51 ha of land respectively.There
is an over achievement of minimum income requirement goal by Rs.98.08 qt and
81.51 manday of family labour
is saved. The solution of wheat/Maize/Pulses/ Potato crop combination of rabi season suggests to grow
wheat, maize, pulses and potato at 0.25, 0.29, 0.30and 0.50 ha of land
respectively. There is an over achievement
of food goal as well as income
goal by 3.9 qt and Rs.7.04 .Eight man days of family labour
is also saved.MS-Excel solution of the WGP model with Wheat/Maize/Potato/Tilhan crop combination of rabi
season suggests to cultivate wheat, Potato and Tilhan
at 0.70, 0.38 and 0.26 ha of land
respectively. An over production of wheat is observed by 16.57qt.Approximately
13 mandays of family labour
is saved and over- achievement of income is observed by Rs.13.07.MS-Excel
solution of the WGP model with Maize/Pulses/Potato crop combination of rabi season shows that present combination is an optimal one.It suggests to cultivate Pulses and Potato at 0.74 and
0.61 ha of land respectively. This will achieve both minimum income requirement
as well as minimum use of hired labour goal. An
over-achievement of income is observed by Rs.99.06 and 91.31 unit of family labour has been saved. MS-Excel solution of the WGP model
with Maize/Potato/Tilhan crop combination of rabi season suggests to grow potato
and Tilhan at 0.24 and 1.11 ha of land. This is an
optimal crop combination as both the goals have been fully achieved. Income is
over-achieved by Rs. 106.82 and 94.85 manday of
family labour has been saved.MS-Excel solution of the
WGP model with Maize/Potato crop combination of rabi season observs an
optimum solution since all the deviational variables of objective function have
value zero. The solution suggests to grow both Maize
and Potato at 0.40 and 0.95 ha of land repectively.
Minimum use of hired labour goal is over- achieved by
Rs.12350.49. Full utilization of family labour is
also observed.MS-Excel solution of the WGP model with Pulses/Potato crop
combination of rabi season observes an optimal
solution and 0.75 and 0.65 ha of land are allocated for Pulses and Potato
respectively.MS-Excel solution of the WGP model with Potato/Tilhan
crop combination of rabi season observs
an optimal combination of crop with 0.23 ha of potato and 1.12 ha of tilhan. Family labour is saved by
94.97 manday.
Results of both WGP and LGP model do not provide any optimum crop
combination in kharif season. Main reason behind this
is that a large part of the land of study area is low land which remains
submerged in water due to heavy monsoon. Although it is is
very much suitable for growing rice but smallholders hardly find any other crop
suitable for growing in this season. However, rabi season do observe seven optimal crop
combinations which are same both for WGP and LGP model. An average rural
household can practice any one of these crop combinations as per their hectare
allocation. Out of these seven crop combinations five combinations include
wheat as one of crops to be shown with other crops. However, two crop
combinations do not include wheat but they are still providing optimal
combination. Moreover, four crop combinations are pulses-based ensuring
satisfaction of the protein requirements essential for doing physical labour. High labour cost and low return on food crops prevent a number
of crop combinations to be helpful in achieving their basic goals.
The striking fact to be noted is that all optimum crop combinations of rabi season have potato as one of
the crop to be sown. This is due to the fact that according to the data of the
study potato is a high return crop with moderate labour
requirement.
This fact suggests that although farmers of the study area do
subsistence farming but they should encourage cultivating some cash crop for
maximizing their return. It will take care of their food goal as well as income
goal. For this adequate credit and marketing facilities should be provided to
them by the government with rigorous check on the activities of middleman.
An average rural household can practice any one of these crop
combinations as per their hectare allocation. Out of these seven crop
combinations five combinations include wheat as one of crops to be shown with
other crops. However, two crop combinations do not include wheat but they are
still providing optimal combination. Moreover, four crop combinations are
pulses-based ensuring satisfaction of the protein requirements essential for
doing physical labour. High labour
cost and low return on food crops prevent a number of crop combinations to be
helpful in achieving their basic goals.
The striking fact to be noted is that all optimum crop combinations of rabi season have potato as one of
the crop to be sown. This is due to the fact that according to the data of the
study potato is a high return crop with moderate labour
requirement.
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Received on 12.01.2013 Accepted
on 10.02.2013
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