An economic assessment of intercropping under coconuts in Sri Lanka

Abstract

This study attempts to assess economically various alternative intercropping methods suitable for typical coconut farmers of Colombo/ Gampaha and Kegalla districts. The socio-economic data obtained from a survey of intercropping coconut farmers were analysed to provide the basis for building intercropping models suitable for small and medium coconut farms. In building the models, the agronomic requirements of the intercrops and coconuts, along with the agroclimatic conditions of the area, were also considered. The technique of multi-period budgeting was used for the analyses and the cost of time required to obtain the produce of perennials was taken into account. The expected future revenues from different intercropping systems were valued in terms of the Sum of their Net Present Values and also their amortised values or annuities which were used as the main criteria for economic comparisons. Subsidiary criteria, such as Return per labour day. Cost/price sensitivity index. Discount rate sensitivity index. Land use factor and Crop intensity factor also were used. The sensitivity of the SNPV to changes of major uncertain parameters such as prices, yields and personal discount rates were analysed to rank the alternatives available. Of the sole crops analysed, mature coconuts had the lowest SNPV, annuity and the labour requirements. These values were substantially higher in all the intercropping models. It was found that early yielding intercrops such as betel, ginger and turmeric which require higher labour inputs give higher SNPVs at higher personal discount rates and are more suitable for farmers who operate small and medium size farms and have a high potential family labour availability. Crops such as pepper and coffee, which give a higher return for labour and higher SNPVs at low discount rates are more suitable for larger farmers who have low personal discount rates. The results endorse the recommendations of agricultural scientists that pepper grown using coconuts as support should be grown as an integral part of all cropping models as it costs little in terms of material inputs and is an extremely stable crop. The methods of replanting at present employed in the survey area were found to be uneconomical and this suggests that research is necessary into high yielding coconut varieties suitable for different agroclimates and into methods of replanting and the yield and age at which replanting should be done. The method of replanting proposed in this thesis, i.e. replanting the less productive 50 per cent of the palms, makes intercropping possible throughout the lifespan of coconuts and provides higher SNPVs than those obtained from other methods. Finally, this study provides an insight into the different typical farms of the region and also into the way different models interact with the resource base of the farmers. This modelling process can have an important application at the field level. Finally, this study suggests that a successful regional planning program in the agricultural sector could start with the identification of the typical resource bases of different categories of farmers. Show more