Analysis of Socio-economic Factors on Dry Farming Households of Ananthapuramu District of Andhra Pradesh, India

Abstract

This study examines the socio-economic profile, household income, and risk aversion behaviour of dry farming households in the Ananthapuramu district of Andhra Pradesh. The research employs a range of analytical tools, including percentages, averages, Lorenz curve, Gini ratios, and multiple linear regression analysis, to investigate income inequalities and risk aversion among farmers. Data was collected through structured questionnaires from 120 randomly selected respondents within the study area. The results revealed that a significant proportion of farmers fell within the age group of 30-39 years (33%), while the majority had attained primary level education (33%). The average family size was 4 to 5 members (68%), comprising 33% males, 31% females, and 35% children. The composition of earners and dependents was found to be 1:1.98, indicating a relatively balanced distribution between those who contributed to household income and those who relied on it. Regarding asset ownership, most farmers possessed land as the primary asset, followed by buildings and implements. The majority of the sampled farmers operated small farms, with 1 to 2 hectares being the prevalent farm size. Income sources were primarily derived from cultivating crops such as groundnut, paddy, cotton, Bengal gram, and tomatoes, alongside income from livestock activities. The study further assessed income inequality using Gini ratios and Lorenz curves. It was found that farmers with less than 1 hectare of land experienced higher income inequality compared to those with larger farms (1-2 hectares and more than 2 hectares). Risk aversion index of the dry farming households was calculated and found to be 3.60 indicating that farmers are risk averters.