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Research Article Open access CC BY 4.0

A Study on Impact of Farmer Producer Organisation on Farmers’ Income in Andhra Prdesh

R. Vedasri, R. K. Mishra

Asian Journal of Agricultural Extension, Economics & Sociology · pp. 7–18 · Published 28 Jul 2021

10.9734/ajaees/2021/v39i830619

Abstract

The present paper gives the information about the impact of Farmer Producer Organisation on farmers income. The data was collected from both the members of FPO and non- members regarding the socio-economic factors and farming details of farmers. Logistic regression which was a binary regression model was used for determining the factors influencing the farmers to join as group members and then ordinary least square regression was estimated to study the impact of FPOs on farmers income by including inverse mills ratio which was calculated in logistic regression model, to remove the selection bias. The results showed that education, distance to market and age are the factors determining the farmers to join as members of FPO. The impact study results showed that group membership, hired labour, crop production area, share of crop sold and market size are the factors that are positively significant and increasing the farmers income.

Farmer Producer Organisation (FPO) farmers income group membership inverse mills ratio Andhra Pradesh

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