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economics of on-farm development - Institute for Social and ...

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All <str<strong>on</strong>g>of</str<strong>on</strong>g> the five explanatory variables c<strong>on</strong>sidered in the analvsis are<br />

-<br />

expected to have positive associati<strong>on</strong> with respect to expenditure <strong>on</strong> OFD. For<br />

instance, higher the extent <str<strong>on</strong>g>of</str<strong>on</strong>g> groundwater replenishment as caused by seepage<br />

in the Peechi canal, higher will be the <strong>farm</strong> level investment <strong>on</strong> OFD. Similarly,<br />

higher the extent <str<strong>on</strong>g>of</str<strong>on</strong>g> groundwater recharge, higher will be the capacity <str<strong>on</strong>g>of</str<strong>on</strong>g> the<br />

pumpset <strong>and</strong> greater will be the OFD expenditure.<br />

Having elaborated <strong>on</strong> the important variables explaining the adopti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

OFD in the Peechi irrigati<strong>on</strong> project, let us examine the influence <str<strong>on</strong>g>of</str<strong>on</strong>g> these<br />

variables <strong>on</strong> the <strong>farm</strong>ers' attitude towards adopti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> OFD in the fields prior to<br />

release <str<strong>on</strong>g>of</str<strong>on</strong>g> water. The results <str<strong>on</strong>g>of</str<strong>on</strong>g> the multiple regressi<strong>on</strong> analysis with respect to<br />

<strong>farm</strong> level adopti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g>OFD have been explained as shown in table 7.9.<br />

T a bl e 79 .. D etermmaots 0 fOFD' m I' cee h'P I ro . eet: R ee,resslOo resu ts<br />

Explanatory variables Coefficients Std. Error T values<br />

C<strong>on</strong>stant 523.217 724.895 0.722··<br />

GWEXT(X,) 0.226 62.217 2.677·<br />

PUMPCAP (Xl) 0.626 82.706 9.005·<br />

ORYSHARE (Xl) 0.224 6.699 1.293·<br />

OCST A TUS (OX.) 0.106 197.048 1.120·<br />

F AMLAB (OX,) -0.125 75.498 -1.846·<br />

Multiple R = 0.73 Adj. Rl = 0.51 F value - 24.24 OW stat. 1.447<br />

Note: • Significant at I % level; •• Significant at 5 per cent level.<br />

From the analysis, it is evident that OFD expenditure III the Peechi<br />

projects has been well explained by all the variables selected, except F AMLAB,<br />

which has a negative coefficient. Thus" the <strong>farm</strong> level expenditure <strong>on</strong> OFD in the<br />

Peechi project is determined by the extent <str<strong>on</strong>g>of</str<strong>on</strong>g> groundwater replenishment caused<br />

by the seepage in canals, capacity <str<strong>on</strong>g>of</str<strong>on</strong>g> the pumpset available <strong>for</strong> irrigating the plot<br />

<strong>and</strong> the proporti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> dry area that could be brought under irrigati<strong>on</strong>. The<br />

occupati<strong>on</strong>al status <str<strong>on</strong>g>of</str<strong>on</strong>g> the <strong>farm</strong>ers has also been found to be important, which<br />

ill'plies that if <strong>farm</strong>ing is the main source <str<strong>on</strong>g>of</str<strong>on</strong>g> income <str<strong>on</strong>g>of</str<strong>on</strong>g> the resp<strong>on</strong>dent (<strong>farm</strong>er),<br />

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