A Comparative Financial Analysis of Four Crops Based Cropping Patterns with Existing Cropping Patterns in Different Locations of Bangladesh

Abstract

This study was undertaken to assess the comparative financial analysis of four crops based cropping pattern (FCP) with existing cropping pattern (ECP) in 35 upazilas of 25 districts under 7 divisions during the year of 2018-19 and 2019-20. Tabular technique and statistical analysis were done to achieve the objectives of the study. The Cobb-Douglas production function model was used for estimating the factors affecting FCP as well as ECP in the study areas. The major findings of the study were that cultivation of FCP was more profitable and feasible than ECP in terms of agronomic and economic point of view. The average total return per hectare for FCP was Tk. 529320.00 and Tk. 547896.00 and for ECP was an average Tk. 346788.00 and Tk. 348819.00 in 2018-19 and 2019-20 respectively. The total variable cost per hectare for FCP was Tk. 237134.00 and Tk. 238584.00 and for ECP was an average Tk. 175968.00 and Tk. 178294.00 in 2018-19 and 2019-20 respectively. Again the gross margin for FCP was Tk. 292186.00 and Tk. 309312.00 and for ECP was an average Tk. 170820.00 and Tk. 170525.00 in 2018-19 and 2019-20 respectively. The Benefit Cost Ratio (BCR) for FCP was 2.23 and 2.30 in 2018-19 and 2019-20 respectively. On the other hand, the BCR for ECP was 1.97 and 1.96 in 2018-19 and 2019-20 respectively. The average marginal benefit cost ratio (MBCR) in FCP over ECP was 2.98 and 3.30 in 2018-19 and 2019-20 respectively. Irrespective of locations, rice equivalent yield (REY), crop productivity, land use efficiency and profitability were higher in FCP than in ECP. The study also showed that FCP faced some problems mainly related to production and marketing of the crops. It may be concluded that the farmers should be encouraged to grow four crops in a calendar year rather than existing two or three crops to enhance productivity and profitability.