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PDF_logo Agricultural Efficiency among the Ultra-Poor of the Northern Region of Bangladesh: Does Credit and Training Matter?

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Agricultural Efficiency among the Ultra-Poor of the Northern Region of Bangladesh: Does Credit and Training Matter?


Paper No:46

Author:Sayema Haque Bidisha, Md. Amzad Hossain and Md. Mehadi Hasan

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Pages:32

Using both household and plot level data, this paper analyses the difference in agricultural productivity and technical efficiency structure of the ultra-poor households of the Northern region of Bangladesh. We find that agricultural productivity, which has been proxied by output per unit of land, is much lower for land cultivated under share-cropping contract than those of self-owned land or land cultivated under fixed rental contract. The study also reveals that this lower productivity of share-cropped land is due to sub-optimal use of agricultural inputs. Apart from the tenancy contract, technological assistance and education of the households are found to be effective for raising productivity. However, no direct impact of credit on agricultural productivity is found. Nevertheless, credit can facilitate agricultural productivity through a less direct channel by providing additional cash required to rent-in land under fixed rental contract. The result of the Logit estimates suggests that the decision to rent-in land under fixed rental
contract indeed depends on the availability of credit to households. Finally, the analysis on efficiency structure of agricultural households using stochastic frontier analysis suggests that training or technological assistance, among others, increases the agricultural efficiency of households.

 
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