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Evaluating Agricultural Policy in a Farming System Framework : A Case Study from North West India

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  • Brajesh Jha

    (IEG)

Abstract

The present study evaluates effect of price, technology and institution-related policies of the Indian government on an average farm in North West India. The present evaluation assumes that with the rationalization of farm input and output prices farmers would adopt suitable technologies under a given institutional framework that will maximize Farmers objective function. A static linear programming-based model that maximizes profit and parameterizes risk has been chosen to present farmers objective function. The model simulates alternate price, technology and institution-related scenarios on an average farm; these scenarios have been compared on the basis of several economic, ecological and social indicators that influence long term-growth of agriculture in the region. Findings suggest that price rationalization alone would not be sufficient for the long-term growth of agriculture in the region; technology and institutions play also an important role.

Suggested Citation

  • Brajesh Jha, 2009. "Evaluating Agricultural Policy in a Farming System Framework : A Case Study from North West India," Development Economics Working Papers 22925, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:develo:22925
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    References listed on IDEAS

    as
    1. P. B. R. Hazell, 1971. "A Linear Alternative to Quadratic and Semivariance Programming for Farm Planning under Uncertainty: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(4), pages 664-665.
    2. Chopra, Kanchan & Kadekodi, Gopal K., 1998. "Price and Non-Price Response in Agriculture: An Ecological Model of a Region in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 53(4), December.
    3. Kumar Jha, Brajesh, 1995. "Trade-off between Return and Risk in Farm Planning: MOTAD and Target MOTAD Approach," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 50(2).
    4. P. B. R. Hazell, 1971. "A Linear Alternative to Quadratic and Semivariance Programming for Farm Planning under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(1), pages 53-62.
    5. Jha, Brajesh & Mohapatra, B.B., 2003. "Liberalisation and Agricultural Prices: Some Disconcerting Trends," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 58(3), September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Agricultural Policy; Farming System Framework; India; Case Study; static linear programming model;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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