Study of effective factors on the commercialization of agricultural products in the household farming system of Khalkhal County

Document Type : Research Paper

Authors

1 Professor, Department of Agricultural Management and Development, Faculty of Agricultural Economics and Development, University of Tehran, Tehran, Iran.

2 gricultural Development & Management Department ,Agricultural Economic & Development college,Agriculture & Natural Resources Faculty, University of Tehran, Iran

3 Department of Agriculture Management and Development, College of Agriculture, University of Tehran. Kraj, Iran.

4 Agricultural Planning, Economic and Rural Development Institute, (APERDI), Tehran, Iran

Abstract

The aim of this study was to investigate the level of commercialization of agricultural products the household farming system and the factors affecting it in Khalkhal county. This study was performed from the preliminary data collected using a questionnaire from a stratified random sample of 368 smallholder farmers. The Household Commercialization Index was used to assess the level of commercialization. A multiple regression model was used to estimate the factors associated with small-scale agricultural commercialization. The average household commercialization index is 39.94%. The results of multiple regression showed that the variables that significantly and positively affect commercialization are the number of available markets, membership in cooperatives, non-agricultural income, and amount of livestock production, crop production, and horticultural production. On the other hand, the variables that significantly and negatively affect commercialization are the age of the head of the household, production costs and distance from the market. This study showed that the farmers of this region are mostly subsistence. In order to increase the commercialization of smallholder farmers, special attention is recommended to educate farmers to look at agriculture as a business and equip farmers with marketing and negotiation skills.

Keywords

Main Subjects


Extended Abstract

Introduction

   The agricultural-family farming system is the dominant farming system (68%) in the country, in which rural households mainly engage in agricultural activities on half to 10 hectares of land. These units, with more than four-fifths of farming units and more than one third of the country's arable lands, have a major role in providing livelihood for villagers, rural economy, land use, production and development of the agricultural sector in Iran and represent the lifestyle. There are a large number of villagers. Agricultural commercialization can be defined as an agricultural transformation in which farmers change from a predominantly consumerist livelihood to a market or a profitable production system and mean more than the marketing of agricultural products; This means that the decision to select the type of product produced and the input used is based on the principles of profit maximization.

 

Materials and Methods

   The current study is quantitative in terms of paradigm and applied in terms of purpose. The statistical population of the study included farmers engage in the household farming system in Khalkhal County. The sample size was estimated using Krejcie and Morgan table. Also, stratified random sampling method with proportional assignment was used for sampling and data collection. Finally, the studied farmers were questioned through a questionnaire and then analyzed. Descriptive statistics such as frequency, percentage, and mean, standard deviation, maximum and minimum were used to describe the data. In order to investigate the factors affecting the commercialization of agricultural products in the family exploitation system, multiple regression analysis was used and in order to determine the level of commercialization, the household commercialization index was used. To measure the level of household commercialization, the ratio of gross value of all products sold annually by each household to the gross value of all products was used as an indicator of household commercialization.

 

Results and Discussion

   The results of this study show that small farmers in the region are not yet fully commercialized. The variables that significantly and positively affect commercialization are the number of available markets, membership in cooperatives, non-agricultural income, the amount of livestock production, the amount of crop production, the amount of horticultural production. On the other hand, the variables that significantly and negatively affect commercialization are the age of the head of the household, production costs and distance from the market. This study showed that farmers in this area are mostly subsistence.

 

Conclusion

   According to the results of the research, in order to increase the level of commercialization of smallholder farmers, special attention is recommended to educate farmers to look at agriculture as a business and equip farmers with marketing and negotiation skills.

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