Rainfall effects on efficiencies of the pulses farmers

First, the technical efficiency of pulse farmers considering the climate effect was analyzed by using the data collected from the pulse farmers in Lower Myanmar. The analysis was done by using not only the usual traditional inputs variables but also incorporating weather-related variables, specific rainfall received at the flowering stage and replanting the pulse when crop damage by rain. Weather-related variables prove that erratic rainfall during the growing season can be detrimental to productivity and yield, suggesting the need for the establishment of a safety net, such as a crop insurance program for income stability of the pulse farmers. The results also show that encouraging female and small-scale farmers in participating training program, provision of credit, and distributing of agricultural practices through accelerating extension services could be helped for the achievement of higher technical efficiency and productivity.

Secondly, assuming low rainfall, received during the early vegetative growth and flowering stages of pulses decreases the technical efficiency, productivity and yield of pulses

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in CDZ, technical efficiency analysis was performed with the application of inputs used and rainfall and temperature at early vegetative and flowering stages. Two stochastic frontier functions with and without weather-related variables are performed for investigating the effect of these specific weather variables on technical efficiency. As a dry zone area, rain and temperature received at the early growth stage and flowering stage can increase the productivity of pulse. However, the study areas are drought-prone, and the result again demands that the need for a weather index-based crop insurance policy and program for the farmers as a safety net from the loss of the drought. Other feasible and possible ways to help farmers from loss by drought are to provide drought resistant varieties, conveying the adaptation measures for the drought to the farmers.

Third, this section tried to analyze and distinguish the effect of erratic rainfall on the profitability and profit efficiency of pulse farmers in Lower Myanmar. Based on the farmers’

perception on the yield loss due to erratic rain during the 2015-2016 pulse growing season, two groups are divided as yield loss group and no yield loss group. Then farmers’ profit efficiency is predicted including weather-related variables into the models in addition to the tradition inputs variables. On the other hand, benefit-cost analysis result was done, and the result indicates that yield loss farmers are more costly in capital investment and lower in profit efficiency. The findings highlight the profit loss of pulse farmers due to erratic rain incidence as well as the detrimental impact of erratic rainfall during the pulse growing season. Moreover, the stochastic frontier profit function result also confirms that yield loss farmers are less efficient than no loss farmers, pointing out that erratic rainfall received during the specific growth stage can reduce profitability in pulse production. The results of the stochastic frontier profit function also provide that the weather-related variables, the rainfall and dummy for replanting, should be incorporated in the model and rainfall variable has a negatively significant effect the profitability of the farmers within each group. To reduce economic loss and to prevent

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farmers from low profit from pulse production, development of the safety network like weather index-based crop insurance program is the repeated and confirmed policy suggestion to the policymakers. Moreover, the farmers’ socio-economic, managerial and demographic characteristics also determine the profit efficiency levels of farmers. Specifically, in loss group, the providing more access to credit, conducting more training program focusing on pulse production practices adapted to seasonal climate change with the target farmers who are female farmers, old household head and small-scale farmers for the improvement of the profit efficiency of the farmers. The result is also in line with the findings of Chapter 2.

Fourth, followed the same analytical framework as in the third section, benefit-cost calculation and profit efficiency analysis was conducted using data collected from farmers of CDZ. From the benefit-cost result, the net profit is higher in no loss group than in loss group, and total invested capital is higher for loss group than no loss group. The findings are also consistent with the results of Lower Myanmar, again pointing out the negative impact of low rain for the achievement of maximum profit for farmers. The profit efficiency level needs to be more improved for CDZ as the minimum profit efficiency is very low and it about 0.02%.

In the stochastic frontier profit function estimation, increase in rainfall at the early vegetative stage is highly desirable for profit efficiency improvement and hence profitability while the result gives a surprise that rainfall at the flowering time can decrease profit efficiency for loss group farmers although the study area is drought-prone. This result is consistent with the findings of Chapter 2, where the rainfall at the flowering time also reduces the technical efficiency of farmers in Lower Myanmar. As this weather risk is unavoidable and controllable for the farmers, the repeated policy recommendation is the development of safety net like weather index-based crop insurance program to protect farmers from profit loss and help income stability. Provision of drought-resistant varieties of seed and efficient and effective application techniques of chemicals and fertilizer under a dry condition is a recommendation

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for policy implication to reduce the cost of production and consequently high profitability.

Moreover, older farmers, less-experienced farmers, low-educated farmers, farmers from Magwe Region, and small-scale farmers should be encouraged to participate in the programs to improve farmers’ managerial skill for achieving high-profit efficiency.

7.1.2 Comparison of the results of stochastic frontier production function between Lower