This chapter estimated the effect of uncertain and low rainfall on the profitability and profit efficiency of the farmers in CDZ of Myanmar where is a drought-prone area. Moreover, the study also emphasized on the effect of incorporating rainfall at the early vegetative growth stage and flowering stage as these stages are very sensitive to the availability of rain for soil moisture content for the plants. The benefit-cost analysis also performed for inquiry of the
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No loss group
Profit efficiency levels
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economic loss due to low rain in the study areas using the yield loss reflected by the farmers’
perception on low rainfall during growing season of pulses.
The result of benefit-cost analysis revealed that total revenue is higher in loss group than no loss group due to high price factor. However, farmers who face yield loss spent more expense in total variable cost for pulse production than those who did not face any loss. The result shows that the net profit of loss group is lower than no loss group with a profit loss of 22,242 Ks per ha, evidencing the negative impact of low fall on the profitability of pulse farmers.
There is a great opportunity to increase the profit efficiency of the farmers about 69%
in loss group, and 61% in no loss group as a large number of farmers are almost inefficient, and the mean efficiency level is still very low. The phenomenon is more prominent in loss group, confirming that the farmers in the study area are suffered from less rainfall problem for their pulse production.
The results of stochastic frontier profit function estimation revealed that less rainfall at the early vegetative growth stage can reduce the profitability of the farmers who are affected yield loss due to low rainfall by mean of delay crop growth while increased rainfall in the flowering stage is undesirable for the achievement of high profit due to detrimental to flowering and pollination. However, pulse production in the study area is as rain-fed crop, and no irrigation facility and no other source of soil moisture availability are possible as it is a drought-prone area. The possible and feasible policy implication for the economic development of pulse farmers in these areas under the given circumstance is again the development of safety network like weather index-based crop insurance program for the farmers’ income stability if they encounter the occurrence of lower or excessive rainfall condition, consequently yield and profit loss arises.
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The results expressed that under low rainfall condition improvement of profitability of pulse farmers can be accomplished through the provision of seed with lower price and drought-tolerant varieties of pulses are essential features for reduction of seed used to ensure maximum profit attainment. Besides, the result shows that higher application of chemicals including herbicide, fungicide and insecticide can improve the profitability of farmers and thus, the efficient and effective application techniques of chemicals under the dry condition is also a considerable way of the cost-saving idea. More utilization of fertilizers consisting of granule chemical fertilizer and foliar fertilizer may decrease net return from pulse production. Even if the basal and side-dressing application of granule fertilizers is practiced, under low soil moisture content, they may not be effective the properties of the availability of these fertilizers by plant uptake. Therefore, good timing and understanding the condition of soil moisture level for fertilizer application is a need for effective use of these inputs. The specific fertilizer application technology should be conveyed to farmers adapted to the specific location of the farm. The share area of pulses may increase the profit from pulse production, generally suggesting that farmers should sow more lines of pulses in the mixed or intercropping pattern under low rainfall condition to resist the crop failure by drought although it needs to be assessed the profitability of other crops in this cropping system.
For the improvement of profit efficiency through the increment of farmers’ managerial skill under yield loss situation from low rainfall, older farmers, less-experienced farmers, low-educated farmers, farmers from Magwe Region, credit access farmers and small-scale farmers should be encouraged to participate in the programs conducted for the upgrade of their knowledge and skill in the case of low rainfall encountered farmers. Moreover, the result of credit access can recommend to provide farmers not only cash but also material supports for avoiding the misuse of credit for farming activities.
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In summary, this study is conducted to empirically assess the impact of low and uncertain rainfall during the pulse growing season of the CDZ. The results prove that less rainfall is a serious determinant for the achievement of maximum profitability and profit efficiency. As in the previous, weather condition like less rainfall is out of human control. Thus the confirmed suggestion for the farmer’s economic development in the study area is the development of weather index-based crop insurance program along with other recommended policy implications regarding the farming practices.
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