Alternative income options for farm-households
off-farm activities side by side with th | Wednesday, 6 April 2011
off-farm activities side by side with th
farming. They also want to supplement their family earnings by undertaking works in industries. All these indicate an improved and encouraging rural economy, Md. Saidur Rahman With the advancement of technology and agriculture inputs, production in agriculture has increased manifold. In order to meet the rising demand of food, the traditional crop varieties have been replaced by high yielding varieties. Improved seed varieties, use of chemical fertilizers, expansion of irrigation facilities are contributing to enhanced agricultural production. It is undeniable that this revolution came with the unfortunate and unexpected cost of traditional crop varieties, natural harmony and ecological balance. Production has marked increase. But population has almost doubled during the last three decades, and prices of essentials have tripled. Population growth and prices of essentials together have far exceeded agricultural production. People in large number have migrated from villages to towns for alternative income options. It has long been argued that our land has lost fertility due to indiscriminate intervention, wrong cultivation practices, and inadequate and inappropriate state management policy. The farmers and their traditional practices can be questioned but it's true that they are always left with what they have, and with little or no help, and with unbearable increase in, and scarcity of agriculture inputs. The reality was found during our observation at the field level. At Kathulia of Alampur Union under Kushtia district, the peasants claim, 7/8 years back they used to get 20 maunds of rice per bigha, but now they get 7/8 maunds on the average. It's hard for the small and marginal land holders to depend on land outputs solely for their family expenses any more. Now the question arises - if the agriculture production, i.e., its return is far less than family expenditure, how do the farmhouses survive? The hardship, helplessness, and livelihood choices of the peasants result in internal migration of occupations to non-farm activities. They are also inclined to working in industries as labourers. The farmhouses have also chosen cattle rearing on commercial basis and other works like shop-keeping. This phenomenon has cut their dependency on income from agriculture crops only. Here are four case studies from the same village. In the first case study, (the farmer suffers due to lack of capital, with no off-farm income earners in the family. In the second and third case studies, the farmhouses are doing well with some members working as industrial workers. According to the fourth case study, even the landless farmer with increased labour wages and non-farm activity is improving his lifestyle. In 2010, Nuruddin (household-1) produced maize, jute, paddy, sesame and papaya. He invested a total of Tk.50,600, and got a net return of Tk.30,000. He sold paddy straws, jute stems, a goat, bamboos and jackfruits and earned additional Tk.18,200. His total income stood at Tk.48,200, while his family expenditure for the same year was estimated at Tk.56,500. Nuruddin's four daughters are married. Round the year the relatives visit them, which increases the family expenditures. Moreover, he has to give some financial support to his daughters. He runs the family amidst hardship. His only son is a public university student. For financial constraints Nuruddin could not make bigger investment to grow profitable crops, nor he could take good care of his crops. So, he usually gets poor harvest. He took a bank loan of Tk.25,000 in 2004, but spent all the money for family purposes, and could not repay the loan. In 2008, the loan amount stood at Tk.37,000 with interest, which he could not repay. So, he got another loan of Tk.39,000, from which he cleared his previous loan. At the end of 2010 the second loan stood at around Tk.43,000. He could not pay back this loan as well. This time he sold 2 bighas of land for Tk.100,000 to get rid of the bank loan. Arshed Ali (household-2) produced rice of different varieties. He got a harvest of 90 maunds worth Tk.77,100. Production cost was Tk.29,250, and net return Tk.47,850. He also earned a net return of Tk.11,600 from brinjal and cabbage production. He sold paddy straws at Tk.12000. From all the crops of his cultivated land he thus made a net return of Tk.71,450 in 2010. The same year Arshed Ali earned Tk.50,000 through cattle rearing. Arshed's one son is a factory worker. Currently, he earns a total of Tk.60,000 in a year. The family's total yearly income stands at Tk.1,81,450 while total expenditures amount to Tk.1,80,000. In 2009, Arshed leased in a fish farm, but could not make profit. The same year he made a profit of around Tk.30,000 from an herbal medicine shop he used to seen in the village market. All these income made him a kind of affluent man, and he made a brick house in 2009-2010. Arshed Ali said, "With traditional crop production with small area of land, we cannot run our family. My family expenditure is high compared to others. That's why I think of earning from different sources." Abdur Rahim (household-3) also produced rice of different varieties. He got a harvest of 78 maunds and made a net return of Tk.22,723. He also produced 8 maunds of jute and earned Tk.8,000. He earned another Tk.6,000 from onion and garlic production. He sold paddy straws and jute stems at Tk.20,000. From all these he made a net return of Tk.56,723 in 2010. In 2010, he earned Tk.47,000 from cattle rearing. Rahim's two sons are factory workers. Currently, they earn a total of Tk.1,56,000 in a year. The family thus has a total income of Tk.2,59,723 against an expenditure of Tk.1,99,700. This year (2011) Rahim bought another 15 kathas of land at Tk.70,000. Around 15 years back, Rahim started with his small family. He had then three bighas of land. He gradually bought another three bighas during the last 10 years. Two years back, he constructed a brick house at a cost of around Tk.3,00,000. Rahim said, "Income from land is falling now. Family income mainly comes from cattle and goats. With this income, I maintain the family and add property. Money for house construction also came from cattle rearing. Besides, the two sons work in a company. They help run the family. " Akram Hossain (household-4) owns no land, but he keeps land for farming every year. Over the years he has been running the family by working as agriculture labourer. He rears cattle every year making some profit out of it. In 2010, he earned around Tk.54,000 from wage labors at Tk. 150 per day. In 2010, he kept four bighas of land. Producing rice and wheat, he earned a net income of Tk.27,160. He also earned Tk.7,200 from sale of paddy straws. From cattle rearing during the year, he got a net return of Tk.15,000. He also gave out one and half bighas of land for share cropping, from where he got crop worth Tk.6,000. Thus from farm productions, cattle rearing and labour wages, he earned a total of Tk.1,09,360. His family expenditure is calculated at Tk.71,000 in 2010. When asked about his earning and farm production, Akram Hossain said, "The rice I get from cultivation remains mainly for family consumption. I sell out other crops. My main source of income is farm labour, and cattle and goat rearing. I can bear the education expenses of my son of class seven, and also can save some money for further investment for cattle." The other farmers talking about Akram commented that Akram does not have to sell out crops since he earns from labour wages to meet family expenses. They also said, people like him in the village are doing well these days. They are at stable status. Conclusion: Side by side with the big industries, expansion of small scale industries at the semi-urban areas adjacent to rural areas can create greater employment opportunities for the farmhouse members. Such industries can be set up in all districts, possibly at all upazilas where rural youths can find job. Local people may come up with such initiatives. In many cases, the big businessmen and interest groups are found acting and propagating against small industries. Local public representatives can resolve such crises, and encourage the small entrepreneurs with incentives, if necessary. Industries like food processing, rural transportation, or household necessaries can grow in the rural vicinity, and of course without wasting cultivable land. This will definitely save agriculture households from losing lands, help sustaining agricultural production and meeting other expenditures including those for education. The poor, marginal and small farmhouse members tend to invest part of their income to alternative off-farm activities side by side with their agriculture farming. They also want to supplement their family earnings by undertaking works in industries. All these indicate an improved and encouraging rural economy. The writer can be reached at E-mail : msaidurbd@yahoo.com
farming. They also want to supplement their family earnings by undertaking works in industries. All these indicate an improved and encouraging rural economy, Md. Saidur Rahman With the advancement of technology and agriculture inputs, production in agriculture has increased manifold. In order to meet the rising demand of food, the traditional crop varieties have been replaced by high yielding varieties. Improved seed varieties, use of chemical fertilizers, expansion of irrigation facilities are contributing to enhanced agricultural production. It is undeniable that this revolution came with the unfortunate and unexpected cost of traditional crop varieties, natural harmony and ecological balance. Production has marked increase. But population has almost doubled during the last three decades, and prices of essentials have tripled. Population growth and prices of essentials together have far exceeded agricultural production. People in large number have migrated from villages to towns for alternative income options. It has long been argued that our land has lost fertility due to indiscriminate intervention, wrong cultivation practices, and inadequate and inappropriate state management policy. The farmers and their traditional practices can be questioned but it's true that they are always left with what they have, and with little or no help, and with unbearable increase in, and scarcity of agriculture inputs. The reality was found during our observation at the field level. At Kathulia of Alampur Union under Kushtia district, the peasants claim, 7/8 years back they used to get 20 maunds of rice per bigha, but now they get 7/8 maunds on the average. It's hard for the small and marginal land holders to depend on land outputs solely for their family expenses any more. Now the question arises - if the agriculture production, i.e., its return is far less than family expenditure, how do the farmhouses survive? The hardship, helplessness, and livelihood choices of the peasants result in internal migration of occupations to non-farm activities. They are also inclined to working in industries as labourers. The farmhouses have also chosen cattle rearing on commercial basis and other works like shop-keeping. This phenomenon has cut their dependency on income from agriculture crops only. Here are four case studies from the same village. In the first case study, (the farmer suffers due to lack of capital, with no off-farm income earners in the family. In the second and third case studies, the farmhouses are doing well with some members working as industrial workers. According to the fourth case study, even the landless farmer with increased labour wages and non-farm activity is improving his lifestyle. In 2010, Nuruddin (household-1) produced maize, jute, paddy, sesame and papaya. He invested a total of Tk.50,600, and got a net return of Tk.30,000. He sold paddy straws, jute stems, a goat, bamboos and jackfruits and earned additional Tk.18,200. His total income stood at Tk.48,200, while his family expenditure for the same year was estimated at Tk.56,500. Nuruddin's four daughters are married. Round the year the relatives visit them, which increases the family expenditures. Moreover, he has to give some financial support to his daughters. He runs the family amidst hardship. His only son is a public university student. For financial constraints Nuruddin could not make bigger investment to grow profitable crops, nor he could take good care of his crops. So, he usually gets poor harvest. He took a bank loan of Tk.25,000 in 2004, but spent all the money for family purposes, and could not repay the loan. In 2008, the loan amount stood at Tk.37,000 with interest, which he could not repay. So, he got another loan of Tk.39,000, from which he cleared his previous loan. At the end of 2010 the second loan stood at around Tk.43,000. He could not pay back this loan as well. This time he sold 2 bighas of land for Tk.100,000 to get rid of the bank loan. Arshed Ali (household-2) produced rice of different varieties. He got a harvest of 90 maunds worth Tk.77,100. Production cost was Tk.29,250, and net return Tk.47,850. He also earned a net return of Tk.11,600 from brinjal and cabbage production. He sold paddy straws at Tk.12000. From all the crops of his cultivated land he thus made a net return of Tk.71,450 in 2010. The same year Arshed Ali earned Tk.50,000 through cattle rearing. Arshed's one son is a factory worker. Currently, he earns a total of Tk.60,000 in a year. The family's total yearly income stands at Tk.1,81,450 while total expenditures amount to Tk.1,80,000. In 2009, Arshed leased in a fish farm, but could not make profit. The same year he made a profit of around Tk.30,000 from an herbal medicine shop he used to seen in the village market. All these income made him a kind of affluent man, and he made a brick house in 2009-2010. Arshed Ali said, "With traditional crop production with small area of land, we cannot run our family. My family expenditure is high compared to others. That's why I think of earning from different sources." Abdur Rahim (household-3) also produced rice of different varieties. He got a harvest of 78 maunds and made a net return of Tk.22,723. He also produced 8 maunds of jute and earned Tk.8,000. He earned another Tk.6,000 from onion and garlic production. He sold paddy straws and jute stems at Tk.20,000. From all these he made a net return of Tk.56,723 in 2010. In 2010, he earned Tk.47,000 from cattle rearing. Rahim's two sons are factory workers. Currently, they earn a total of Tk.1,56,000 in a year. The family thus has a total income of Tk.2,59,723 against an expenditure of Tk.1,99,700. This year (2011) Rahim bought another 15 kathas of land at Tk.70,000. Around 15 years back, Rahim started with his small family. He had then three bighas of land. He gradually bought another three bighas during the last 10 years. Two years back, he constructed a brick house at a cost of around Tk.3,00,000. Rahim said, "Income from land is falling now. Family income mainly comes from cattle and goats. With this income, I maintain the family and add property. Money for house construction also came from cattle rearing. Besides, the two sons work in a company. They help run the family. " Akram Hossain (household-4) owns no land, but he keeps land for farming every year. Over the years he has been running the family by working as agriculture labourer. He rears cattle every year making some profit out of it. In 2010, he earned around Tk.54,000 from wage labors at Tk. 150 per day. In 2010, he kept four bighas of land. Producing rice and wheat, he earned a net income of Tk.27,160. He also earned Tk.7,200 from sale of paddy straws. From cattle rearing during the year, he got a net return of Tk.15,000. He also gave out one and half bighas of land for share cropping, from where he got crop worth Tk.6,000. Thus from farm productions, cattle rearing and labour wages, he earned a total of Tk.1,09,360. His family expenditure is calculated at Tk.71,000 in 2010. When asked about his earning and farm production, Akram Hossain said, "The rice I get from cultivation remains mainly for family consumption. I sell out other crops. My main source of income is farm labour, and cattle and goat rearing. I can bear the education expenses of my son of class seven, and also can save some money for further investment for cattle." The other farmers talking about Akram commented that Akram does not have to sell out crops since he earns from labour wages to meet family expenses. They also said, people like him in the village are doing well these days. They are at stable status. Conclusion: Side by side with the big industries, expansion of small scale industries at the semi-urban areas adjacent to rural areas can create greater employment opportunities for the farmhouse members. Such industries can be set up in all districts, possibly at all upazilas where rural youths can find job. Local people may come up with such initiatives. In many cases, the big businessmen and interest groups are found acting and propagating against small industries. Local public representatives can resolve such crises, and encourage the small entrepreneurs with incentives, if necessary. Industries like food processing, rural transportation, or household necessaries can grow in the rural vicinity, and of course without wasting cultivable land. This will definitely save agriculture households from losing lands, help sustaining agricultural production and meeting other expenditures including those for education. The poor, marginal and small farmhouse members tend to invest part of their income to alternative off-farm activities side by side with their agriculture farming. They also want to supplement their family earnings by undertaking works in industries. All these indicate an improved and encouraging rural economy. The writer can be reached at E-mail : msaidurbd@yahoo.com