Assessing the economic viability of onion production across various land tenure systems in Pabna District

Onion production under different land tenure arrangements

Abstract

This research investigates the land tenurial arrangements, input usage, profitability and challenges faced by onion farmers in some selected areas of Pabna district. The research employs Cobb-Douglas production function model to analyze data from 120 sample farmers, categorized into three tenurial groups namely, owner, owner-cum-tenant and tenant operators. Findings reveal disparities in annual incomes, farm sizes, input utilization and profitability among these groups. Owner farmers typically experience higher levels of income and operate larger farms; however, they also face increased input expenditures. Benefit Cost Ratio (BCR) for onion were 1.92, 1.87, 1.80 for owner, owner-cum-tenant and tenant farmers, respectively which implies that one-taka investment in onion production generated Tk. 1.92, Tk. 1.87, Tk. 1.80 for respective tenurial groups which demonstrate profitability in onion production for all groups. The profitability of owner farmers is significantly higher than the tenant farmers. The result also showed that human labor, seed, urea, TSP and irrigation have significant effects on onion production. Owner-cum-tenant and the tenant farmer’s realized reduced total output compared to owner farmers, holding other variables constant. Onion farmers also face some challenges related to seed quality, storage, operating capital, and irrigation costs. To enhance onion production and tenant performance, public and private interventions are recommended.