Socio-economic factors affecting rice farm productivities: the Krian Irrigation Scheme, Malaysia

Abstract

This study attempts to provide a better understanding of factors affecting rice farm productivities in the Krian rice growing area. It also supplies additional material for the regional study of one of the oldest irrigation schemes in Malaysia. The application of multiple regression analysis to sample cross-section input-output data resulted in the explanation of a statistically significant percentage of variation in gross padi production. Conventional analysis merely makes statements of management effects. The differences between average and frontier production function underscores differences in managerial ability of farmers operating on the frontier compared to those operating on the outer bound. This analysis takes cognizance of management effects by way of management entered as explicit variables. The theoretical consideration therefore means that average and frontier functions are the same; any differences that exist are due to differences in management ability and random disturbances. The inclusion of management ability marginally improved the fit of the Cobb-Douglas function. Significant and substantial resource productivity differences were found between management groups. As such, extension induced technical change to increase farm output is likely to widen this gap and accelerate the degree of relative performance, given the existing technique of the extension programme. Extension strategies and programmes therefore must take cognizance of this fact. The reluctant adopters of modern technology must not be neglected in favour of the much more advanced adopters. The recognition should also be given to land, soil and irrigation quality which contribute the major share of the explanation in variation. The strategy therefore is to identify areas where productivity can be increased. Fertiliser and management ability factors seems the obvious choice. Research needs to be conducted to further improve fertiliser productivity. Extension strategies developed should likewise aim at improving the management ability of all farmers, with special attention given to the less modem farmers. Religious, social and other economic factors must also be analysed to provide a general framework of understanding of factors apart from those already discussed.