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At both sites, more than 73% of the total expenditure was spent on
household requirements and the rest was spent on farm resources (Table 14).
Farmers incurred the highest farm expenditure on hired labor and inputs.
Expenditure on input use was directly related to the adoption of technology.
Sitakund farmers spent more on hired labor because the wage rate was higher due
to partial industrialization of the site. The highest household expenditure was for
purchasing rice. This was inversely related to the adoption of technology (data not
shown). At both sites, adoption of rice technology helped the farmers attain partial
self-sufficiency in rice. In Kamalganj, less emphasis was given to education,
medicine, and animal protein. But at Sitakund, high adopters spent more on
education, medicine, and animal protein, followed by medium and low adopters.
Similar patterns of income and expenditure were observed in 1990.
Annual incomes and expenditures are presented in Table 14. Average results
over 2 years indicated that cash balance at both sites was directly related to the
adoption of technology escept in the case of medium adopters at Kamalganj. In
general, this indicates that farming is a profitable activity.
POLICY IMPLICATIONS OF THE FINDINGS
Adoption of cropping systems technologies had a substantial impact on the economy
of the villages. Smallholders were high adopters of the cro ping systems technology.
The high adopters did not apply the recommended dose o P fertilizer. The household
survey indicated that small landholders had low purchasing power. The provision of
credit facilities would enable further adoption of modern rice technologies.
Although the extent of resource use in the production process was almost the
same at both sites, the yield was lower at Sitakund because of variations in natural
factors. Even under unfavorable conditions during 1989-90 in Sitakund, the
recommended technology outperformed the traditional practices. The study showed
that high adopters used more hired labar as well as family lahor in the production
process. Hired laborers are the landless or the small landholders. Therefore, an
attempt should be made to improve the adoption of modern rice technologies
through the extension services. This will generate more employment opportunities
and increase the purchasing power of the landless and the sn~allholders.
Although the farming systems included crops, livestock, homestead-forestry,
and off-farm activities, the rice sector was the dominant component in the study
areas. The rice cropplng system is subject t0 natural hazards. Therefore, attention
must be give11 to other sources of income (e.g., intensive srnall-scale vegetable
cultivation, goat rearing, and pond culture of fish) that could stabilize and increase
income. The potential for nonagricultural income must :ilso be explored.
At Kamalganj, there were no rice processing centers. Farmers were forced to
sell their grain to dealers at lower prices at the time of harvest to meet urgent cash
needs. The development of small-scale local processing centers may strengthen the
position of the farmer.