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Patterns of Agricultural Production and
Practices: Feed the Future Zone and Other
          Regions of Bangladesh

                           Akhter Ahmed
                             Bingxin Yu
      Bangladesh Policy Research and Strategy Support Program
            International Food Policy Research Institute

                            Workshop on
  The Feed the Future Zone in the South and the Rest of Bangladesh:
               A Comparison of Food Security Aspects
                          16 January 2013
                                Dhaka
Data

Data for the analysis came from the Bangladesh Integrated
Household Survey (BIHS).
Agricultural module of BIHS collected information on
Landownership and tenure; agricultural production, input use
and costs (plot-level data); livestock, poultry and fisheries
production practices; marketing practices and revenues

BIHS sample is:
   nationally representative of rural Bangladesh
   representative of rural areas of each of the 7
   administrative divisions of the country
   representative of the FTF Zone of Influence
BIHS started in October 2011 and ended in March 2012
                                                                2
SURVEY RESULTS




                 3
Inequality in Distribution of Arable Land

                                      Gini coefficients
 0.6
                                                           0.580
0.58                                                                           0.575
                   0.571
                                                 0.558
0.56    0.551                                                                             0.548

0.54
                                                                      0.520
0.52
                                         0.508
                              0.503
 0.5

0.48

0.46
       FTF zone   Barisal   Chittagong   Dhaka   Khulna   Rajshahi   Rangpur   Sylhet   Bangladesh


                                                                                                  4
Inequality in Land Distribution in FTF Zone

The distribution of ownership of




                                                                            100
                                    Cumulative percentage of owned arable land
arable land in the FTF zone is
extremely unequal




                                                                   80
42.5% of all households are
landless—they own no arable




                                                           60
land
Among those who own land,



                                                   40
bottom 25% of all households
own only 3.5% of total cultivable
land

                                         20
The other extreme: top 5% of all
households own 27.7% and top                              0
10% own 43.9% of all cultivable                                                   0         20        40        60       80        100
                                                                                      Cumulative percentage of households in FtF zone
land in the FTF zone
                                                                                             Lorenz curve            Line of equality
Gini coefficient: 0.55

                                                                                                                                        5
Purely Tenant Farmers


          40
                                        37                                                  37
                                                                                  36
          35      34                              34                    34                             34
                                                            30
          30

          25                24
Percent




          20

          15

          10

          5

          0
               FTF zone   Barisal   Chittagong   Dhaka    Khulna     Rajshahi   Rangpur   Sylhet   Bangladesh
                                                         Divisions
                                                                                                        6
Distribution of Farm Size Groups

                       FTF Zone                                                  Rural Bangladesh
50                                                           50
                    43.8                                                           44.6
40                         37.2                              40     36.3                  37.8
       32.8
                                                                                                                   31.1
30                                       27.8         26.7   30
                                                                                                    21.6
20                                                           20
                                  15.6
                                                                                                 11.8
           8.3                                  7.8                        9.6
10                                                           10                                              7.3


0                                                            0
        Marginal    Small (0.5 - Medium (1.5    Large (2.5           Marginal    Small (0.5 - Medium (1.5    Large (2.5
     (less than 0.5 1.49 acres) - 2.49 acres)   acres and         (less than 0.5 1.49 acres) - 2.49 acres)   acres and
          acre)                                   more)                acre)                                   more)

              Percent of farmers                                            Percent of farmers
              Percent of total operated land                                Percent of total operated land
                                                                                                                     7
Fertilizer Use by Farm Size Groups
                                             FTF Zone                                                                            Bangladesh
                          250                                                                                 250
                                   226                      219                                                        221
                                                208                                                                                             214
                                                                                                                                    203
                          200                                                                                 200
                                                                                                                                                             194
Metric tons per hectare




                                                                                    Metric tons per hectare
                                                                         180

                          150                                                                                 150


                          100                                                                                 100


                           50                                                                                  50


                            0                                                                                   0
                                Marginal     Small (0.5 - Medium       Large (2.5                                   Marginal     Small (0.5 - Medium       Large (2.5
                                (less than   1.49 acres) (1.5 - 2.49   acres and                                    (less than   1.49 acres) (1.5 - 2.49   acres and
                                 0.5 acre)                 acres)        more)                                       0.5 acre)                 acres)        more)


                                              Urea fertilizer                                                                     Urea fertilizer

                                                                                                                                                                        8
Rice Yields by Farm Size Groups
                                           FTF Zone                                                                          Bangladesh
                                2.95
                          3                   2.82                                                          3     2.90          2.87        2.83         2.81
                                                          2.68         2.62
Metric tons per hectare




                                                                                  Metric tons per hectare
                          2                                                                                 2




                          1                                                                                 1




                          0                                                                                 0
                              Marginal     Small (0.5 - Medium       Large (2.5                                 Marginal     Small (0.5 - Medium       Large (2.5
                              (less than   1.49 acres) (1.5 - 2.49   acres and                                  (less than   1.49 acres) (1.5 - 2.49   acres and
                               0.5 acre)                 acres)        more)                                     0.5 acre)                 acres)        more)


                                           Yield of all rice                                                                  Yild of all rice

                                                                                                                                                                    9
Comparing Fertilizer Application With
                     Recommended Dose for Rice Crops: FTF Zone
                             HYV aman                                                      HYV boro
                     200                                                         300   269 260
                                 181
                           166                                                   250




                                                            Kilograms /hectare
Kilograms /hectare




                     150
                                                                                 200
                                       101
                     100                     91                                  150             131 130   121
                                                  69
                                                                                 100
                      50                               43                                                        64
                                                                                  50

                       0                                                           0
                           Urea         TSP       MoP                                  Urea        TSP     MoP
                            Recommended dose                                              Recommended dose
                            Actual use                                                    Actual use
                                                                                                                 10
Yields of Rice: FTF Zone

                              5


                                                                                                    4.07
Yield (metric tons/hectare)




                              4                                                             3.75            3.80


                              3                                                                                      2.81
                                                                            2.51
                                             2.32
                                                                                    2.13
                                                    1.93
                              2
                                                            1.41    1.51
                                   1.18
                              1



                              0
                                  Aus local Aus HYV All aus B. aman T. aman T. aman All aman Boro    Boro All boro All rice
                                                                      local   HYV            HYV    hybrid                  11
Cost of Production for Major Rice Crops: FTF Zone

                       Cost per hectare                                                         Cost per metric ton

               70000                                  65266                             25000

                                                                                                  20817
               60000




                                                                      Taka/metric ton
Taka/hectare




                                                                                        20000
               50000                   46935                  47765
                                                                                        15000                 13749
               40000   37632                                                                                             12827
                                                                                                      11773
                                           31779
               30000                                                                    10000                     9295        9182
                               20360
               20000
                                                                                         5000
               10000
                                                                                            0
                  0
                                                                                                 Local aman HYV aman     HYV boro
                       Local aman      HYV aman       HYV boro

                                                                                                  Full cost       Cash cost
                          Full cost            Cash cost                                                                      12
Way Forward (1)

Improvement in food security can be enhanced by rapidly increasing
the incomes of small commercial farmers. These farmers dominate
agricultural production. Providing smallholders with adequate access
to institutional credit and effective agricultural extension services are
critical for agricultural development in the FTF zone.
Since there is little or no fallow land now available, future production
increases in Bangladesh will have to come from higher yields
This will mean developing new technologies and innovations through
research to address production problems in flood, drought, and
salinity induced stress conditions
Food and agricultural technologies must be disseminated to farmers
through effective extension systems
                                                                       13
Way Forward (2)

Prevalence of landlessness is very high and increasing. The capacity to
absorb the growing rural labor force in agriculture is extremely
limited. A shift of rural labor force out of agriculture requires the
creation of rural non-farm employment opportunities in higher
productivity sectors. Rapid development of rural-urban food value
chains is important for generating non-farm employment and
incomes.
While private sector activities are increasingly creating employment
opportunities and income, the public sector should continue to
complement private-sector activities. The GOB’s role in providing an
enabling policy environment for the private sector is crucial in this
regard.
                                                                   14

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Patterns of agricultural production and practices

  • 1. Patterns of Agricultural Production and Practices: Feed the Future Zone and Other Regions of Bangladesh Akhter Ahmed Bingxin Yu Bangladesh Policy Research and Strategy Support Program International Food Policy Research Institute Workshop on The Feed the Future Zone in the South and the Rest of Bangladesh: A Comparison of Food Security Aspects 16 January 2013 Dhaka
  • 2. Data Data for the analysis came from the Bangladesh Integrated Household Survey (BIHS). Agricultural module of BIHS collected information on Landownership and tenure; agricultural production, input use and costs (plot-level data); livestock, poultry and fisheries production practices; marketing practices and revenues BIHS sample is: nationally representative of rural Bangladesh representative of rural areas of each of the 7 administrative divisions of the country representative of the FTF Zone of Influence BIHS started in October 2011 and ended in March 2012 2
  • 4. Inequality in Distribution of Arable Land Gini coefficients 0.6 0.580 0.58 0.575 0.571 0.558 0.56 0.551 0.548 0.54 0.520 0.52 0.508 0.503 0.5 0.48 0.46 FTF zone Barisal Chittagong Dhaka Khulna Rajshahi Rangpur Sylhet Bangladesh 4
  • 5. Inequality in Land Distribution in FTF Zone The distribution of ownership of 100 Cumulative percentage of owned arable land arable land in the FTF zone is extremely unequal 80 42.5% of all households are landless—they own no arable 60 land Among those who own land, 40 bottom 25% of all households own only 3.5% of total cultivable land 20 The other extreme: top 5% of all households own 27.7% and top 0 10% own 43.9% of all cultivable 0 20 40 60 80 100 Cumulative percentage of households in FtF zone land in the FTF zone Lorenz curve Line of equality Gini coefficient: 0.55 5
  • 6. Purely Tenant Farmers 40 37 37 36 35 34 34 34 34 30 30 25 24 Percent 20 15 10 5 0 FTF zone Barisal Chittagong Dhaka Khulna Rajshahi Rangpur Sylhet Bangladesh Divisions 6
  • 7. Distribution of Farm Size Groups FTF Zone Rural Bangladesh 50 50 43.8 44.6 40 37.2 40 36.3 37.8 32.8 31.1 30 27.8 26.7 30 21.6 20 20 15.6 11.8 8.3 7.8 9.6 10 10 7.3 0 0 Marginal Small (0.5 - Medium (1.5 Large (2.5 Marginal Small (0.5 - Medium (1.5 Large (2.5 (less than 0.5 1.49 acres) - 2.49 acres) acres and (less than 0.5 1.49 acres) - 2.49 acres) acres and acre) more) acre) more) Percent of farmers Percent of farmers Percent of total operated land Percent of total operated land 7
  • 8. Fertilizer Use by Farm Size Groups FTF Zone Bangladesh 250 250 226 219 221 208 214 203 200 200 194 Metric tons per hectare Metric tons per hectare 180 150 150 100 100 50 50 0 0 Marginal Small (0.5 - Medium Large (2.5 Marginal Small (0.5 - Medium Large (2.5 (less than 1.49 acres) (1.5 - 2.49 acres and (less than 1.49 acres) (1.5 - 2.49 acres and 0.5 acre) acres) more) 0.5 acre) acres) more) Urea fertilizer Urea fertilizer 8
  • 9. Rice Yields by Farm Size Groups FTF Zone Bangladesh 2.95 3 2.82 3 2.90 2.87 2.83 2.81 2.68 2.62 Metric tons per hectare Metric tons per hectare 2 2 1 1 0 0 Marginal Small (0.5 - Medium Large (2.5 Marginal Small (0.5 - Medium Large (2.5 (less than 1.49 acres) (1.5 - 2.49 acres and (less than 1.49 acres) (1.5 - 2.49 acres and 0.5 acre) acres) more) 0.5 acre) acres) more) Yield of all rice Yild of all rice 9
  • 10. Comparing Fertilizer Application With Recommended Dose for Rice Crops: FTF Zone HYV aman HYV boro 200 300 269 260 181 166 250 Kilograms /hectare Kilograms /hectare 150 200 101 100 91 150 131 130 121 69 100 50 43 64 50 0 0 Urea TSP MoP Urea TSP MoP Recommended dose Recommended dose Actual use Actual use 10
  • 11. Yields of Rice: FTF Zone 5 4.07 Yield (metric tons/hectare) 4 3.75 3.80 3 2.81 2.51 2.32 2.13 1.93 2 1.41 1.51 1.18 1 0 Aus local Aus HYV All aus B. aman T. aman T. aman All aman Boro Boro All boro All rice local HYV HYV hybrid 11
  • 12. Cost of Production for Major Rice Crops: FTF Zone Cost per hectare Cost per metric ton 70000 65266 25000 20817 60000 Taka/metric ton Taka/hectare 20000 50000 46935 47765 15000 13749 40000 37632 12827 11773 31779 30000 10000 9295 9182 20360 20000 5000 10000 0 0 Local aman HYV aman HYV boro Local aman HYV aman HYV boro Full cost Cash cost Full cost Cash cost 12
  • 13. Way Forward (1) Improvement in food security can be enhanced by rapidly increasing the incomes of small commercial farmers. These farmers dominate agricultural production. Providing smallholders with adequate access to institutional credit and effective agricultural extension services are critical for agricultural development in the FTF zone. Since there is little or no fallow land now available, future production increases in Bangladesh will have to come from higher yields This will mean developing new technologies and innovations through research to address production problems in flood, drought, and salinity induced stress conditions Food and agricultural technologies must be disseminated to farmers through effective extension systems 13
  • 14. Way Forward (2) Prevalence of landlessness is very high and increasing. The capacity to absorb the growing rural labor force in agriculture is extremely limited. A shift of rural labor force out of agriculture requires the creation of rural non-farm employment opportunities in higher productivity sectors. Rapid development of rural-urban food value chains is important for generating non-farm employment and incomes. While private sector activities are increasingly creating employment opportunities and income, the public sector should continue to complement private-sector activities. The GOB’s role in providing an enabling policy environment for the private sector is crucial in this regard. 14