Factors Influencing Economic Viability of Small and Marginal Farms in Rayalaseema Region of Andhra Pradesh, India

This study was conducted to estimate the factors influencing the viability of small and marginal farms in Rayalaseema region of Andhra Pradesh. Multistage sampling technique was employed for selection of samples at different levels (districts, mandals and villages) in the present study. A sample of 120 farmers was selected from two districts, six mandals and six villages. The farmers were categorized according to their land holding size into marginal (<1 ha) and small (1-2 ha) category. On the basis of economic surplus left, the sample farmers were grouped as viable and nonviable farmers. The farmers having positive economic surplus are viable farmers and the farmers with negative economic surplus are non-viable farmers. Out of 120 sample farmer’s only 37 farmers were viable and 83 remained non-viable. It is found that net income from live stock and dairy and net income from crops were the major significant discriminating factors that discriminate viable and non-viable farmers. Other significant factors were off farm income, farm size and family expenditure.