5. AGRICULTURAL DEVELOPMENT
5.1  General
 
 
5. 1. 1    The Research Station, Maha Illuppallama has been experimenting with a wide range of irrigated crops under the actual soil and climatic conditions encountered in the project area for several years. Experience with irrigated upland crop production on a farm scale in and around the project area is however limited. Estimates of probable yields and inputs and labour requirements have therefore been arrived at after discussion with officials and farmers and reference to documents prepared by the Department of Agriculture.
 
5. 1. 2    Although the soil and climatic conditions in the project area are suitable for the cultiva­tion of a wide range of crops, it is not considered advisable to encourage farmers to grow a large number of different crops in the first stage of agricultural development.
 
   Each crop requires specific knowledge and experience and the high level of management required for the success of the project will best be served if a few rather than many crops are grown. Accordingly a limited number of crops which have been given high priority in the Five Year Plan have been considered.
 
5.2   Range
of Crops
 
5. 2. 1 Paddy (Oryza sativa)
 
Paddy is considered the main crop. High yielding photo-period incentive varieties of 3 months, 3.5 months and 4 months duration have been produced by the Department of Agriculture and are available for cultivation. Mudland paddy will be the normal practice in any season on the poorly drained lands which represent about 28,500 acres. Cultivation of paddy with supplementary irrigation under upland conditions, i.e. without puddling or flooding, has been successfully demonstrated and is considered a suitable technique for cultivating paddy on this class of land during the wet Maha season.
 
5.  2. 2 Maize (Zea mays)
 
Varieties presently cultivated are of the yellow flint type. Experiments are being carried out with improved varieties of the 3.5 to 4 month age class for cultivation during either season. Among the problems that need to be solved is that of protecting this crop from birds which cause considerable damage at the present time. Improved varieties of Sorghum are also under study at the research station. Sorghum is similar in its require­ments to maize and may be considered interchangeable with the latter crop.
 
5. 2. 3 Pulses
 
The pulses to be cultivated are turdhal (cadjan), green gram (Phaseolus aurous) and cowpea (Vigna sinensis). A dwarf variety of turdhal has been evolved at Maha Illuppal­lama. It is a 4-month stain which can give at least one ratoon after the main Maha season crop. A high yielding selection of green gram made at Maha Illuppallama is available. It is of 3 months duration. It must be planted after the heavy Ma/ia season rains. The harvesting season should be dry in order to prevent germination of seeds in pods. High yielding selections of cowpea made at Maha Illuppallama are available. These strains are of 3 months duration. One of these selections can be used as a substi­tute for Masoor dhal (lentils).
 
5. 2. 4 Groundnuts (Arachis hypogea) and Soya bean (Glycina hispida)
 
High yielding varieties of both crops selected at Maha Illuppallama are available. The recommended varieties are of 3.5 months duration and can be grown in both seasons although they tend to give better results during the dry Yala season. Inoculated seed is available.
 
5.  2. 5 Chillies (Capsicum annum)
 
Chillies can be grown on well-drained land during all seasons. A dry period during harvest is necessary in order to permit sun drying of the ripe pods. A high yielding 5-6 month variety selected at the Maha Illuppallama Research Station is available for irrigated cropping. Transplanting is recommended after a 4 to 6 week period in the nursery. Harvest begins 2.5 months after transplanting and 6 to 8 picks are possible at 7 to 10 day intervals. Realisation of high yields with this crop is dependent on the adoption of adequate plant protection measures.
 
5. 2. 6  Onions (Alium spp.)
 
Large extents of shallot onions are cultivated in the Northern part of the country at a high level of sophistication. The crop is a new one in the project area but can be success­fully cultivated in the region under conditions of adequate drainage. The crop can be harvested 80 to 90 days after planting.
 
               The Bombay
onion is a comparatively new crop in the country. The crop is trans­planted after 45 days in the nursery and require 3 to 3.5 months in the field before lifting. All seed for Bombay
onion cultivation is imported at the present time.
 
5. 2. 7 Cotton (Gossypium spp.)
 
Promising results have been recorded with cotton in the Southern province (Uda Walawe area) under similar soil and climate conditions. Cultivation in small family farms is considered specially suitable for harvesting good quality produce by frequent and careful picking.
 
Some data on this crop is available at the Research Station, Maha Illuppallama. A comprehensive programme of experiments is now needed to determine the feasibility of this crop for the area and suitable times for sowing the crop. The selection of suitable varieties, assessment of water and fertilizer requirements and effective plant protection practices need to be studied. This programme has to be implemented at the Research Station, MahaIlluppallama and to be linked with the preparation of a specific cotton extension programme. The assistance of a specialised orgnisation having a wide experience with the development of this crop is recommended as a means ensuring and accelerating the programme.
 
5. 2. 8    Sugar-Cane (Saccharum offcinarum)
 
Sugar cane is presently cultivated in large State-owned estates at Kantalai and Gal Oya in the Eastern part of the dry zone. This type of farming is capital intensive and does not provide sufficient employment opportunities. Production and processing of sugar-cane on small family farms is not traditional in the area. Sugar-cane has not therefore been considered at this stage of the agricultural development of the project area.
 
5. 2. 9 Fodder Crops
 
A considerable amount of data on the cultivation of fodder crops is available at the Maha llluppallama Research Station. Their cultivation is considered at the beginning of agricultural development for feeding draught animals which will be needed for paddy cultivation. The cultivation of irrigated fodder for milk production does not seem presently feasible. Sufficient proven high-yielding animals are not available and in any case there is little experience in handling a quality dairy animal in and around the project area. Provision has however been made for milk production on a very small scale for local consumption in the area. The cultivation of irrigated fodder for meat production is not feasible within the present situation of the country’s economy.
 
5. 2.10 Fruit and Vegetables
 
Cultivation of fruits and vegetables is contemplated to the extent of satisfying the local demand only. Significant extension of the area under these crops could be envisaged in the future if the export market for fruit and vegetables appear more profitable than import substitution.
 
5.3  Yield prospects
 
5. 3. 1    Under the environmental conditions of the project it is clear that the cost of the invest­ment on irrigation can only be justified if the levels of management of the means of production are high. The results of agricultural research and the general level of intelligence of the farming community are reasons for believing that high levels of productivity are possible provided that economic incentives are attractive and the exten­sion services available are adequate.
 
5. 3. 2    The targets used are of the order of 60 percent of the yields realised in experimental areas at the Maha Illuppallama Research Station.
 
5. 3. 3    It would however be unrealistic to expect high levels of production at the outset of agricultural development. Farmers need time to gain that amount of experience and skill which will allow them to operate efficiently and accept the risk of high inputs. In the very short term (in the first year or two) average yields are not expected to be far above those which have been obtained at the Maha Illuppallama Pilot project and the Youth Scheme at Rajangana.
 
Yield Evaluations are shown in  Table  below.
 
                           
                            Yield Evaluation of Crops
 
                                                                         Unit: Paddy: in bushels/acre
                                                                            Other crops : in cwt/acre
 

 

Average yield in H & IH areas

Average yield in Maha Illp. Pilot Pro.

Average yield in Youth Scheme Rajangana

Average experiment Yields

Average yields expected in the short term

Average yields expected in the long term

 

wet paddy      130.d

33

 

43

50

150

50

100

wet paddy      100d

40

130

45

90

Upland paddy

26

 

 

 

Maize

6

35

10

20

Turdhal (piegeon pea)

  main crop

20

6

12

  ratoon crop

13

4

8

Green Gram

5

3.6

15

5

10

Cow - pea

5

5.2

20

7

12

Ground nut (unshelled)

6.7

38

9

20

Soya beans

3.3

25

5

15

Chillies (dried)

4

4.0

6

25

7

15

Red onions

23.0

160

40

100

Bombay onions

22.0

160

30

100

Cotton (seed cotton)

38

10

20

 
 
5.4     Input requirements
 
5. 4. 1     Realisation of these yield targets is dependent among other things, on the correct use of fertilizer and agro-chemicals in adequate quantities. The recommendations of the Department of Agriculture have been used for estimating the magnitude of these input requirements. The use of herbicides has been accepted in spite of its foreign exchange cost. the availability of labour at peak requirement for manual weeding is a constraint and the fact that manual weeding cannot be done before some crop-weed competition has taken place is another consideration.~
 
5. 4. 2     At the very early stage of agricultural development however it would be unrealistic to expect inexperienced farmers to use very high quantities of inputs since this could result in heavy losses if crops were to fail for any reason.
 
5. 4. 3      Thus in the first years it is expected that the use of inputs will on the average  be 20% of recommended dosage.
 
5.5.  Labour Requirements
 
5. 5. 1     Average labour requirements have been computed in a very tentative way for each -crop. At the beginning of agricultural development it is assumed that paddy fields will be worked with draught animals and the uplands with hand tools. At full development two alternatives concerning farm equipment have been considered:
 
                      The use of the same equipment as at the beginning of agricultural development.
                      The use of 2-wheel tractors, threshers and power sprayers.
 
5. 5. 2    These estimates are generally lower than the figures collected by the Department of Agriculture in Government Farms, as farmers working for their own benefit would operate at higher levels of efficiency. It is also assumed that the use of farm machinery will be improved so as to reach a fair level of efficiency.
 
5.  5. 3   The total labour requirements per crop are given in Table below:
 
Labour Requirements Per Crop
     
                                                      Unit: Work days of 8 hours
 

                                                                            At the                      At full development

                                                                        beginning
                                                                        of agricultu­-
                                                                        ral develop-     Hand culti-     Use of        Use of
                                                                          ment*                vation         draught       2-wheel
                                                                                                                    animals        tractors

          
           Wet paddy (130 d.)           ..                                                  ..                                                         41                                 49                 37
           Wet paddy (100 d.)           ..           ..             40                                 45                 34
           Upland paddy                    ..           ..             49                 64                                 30
           Maize              ..               ..           ..             38                 51                                 20
           Turdhal (main and ratoon crop)       ..             73                 96                                 64
           Green Gram                      ..           ..             46                 53                                 32
           Cow-pea          ..               ..           ..             41                 48                                 28
           Groundnuts       ..               ..           ..             60                 61                                 33
           Soya beans       ..               ..           ..             43                 48                                 28
           Chillies             ..               ..           ..           135               172                                136
           Red onions       ..               ..           ..           150               192                               156
           Bombay
onions..               ..           ..           181               237                                201
           Cotton              ..               ..           ..             78                 87                                 60

*                       
Use of draught animals for wet paddy and hand cultivation of other crops.
 
5.6   Price policy requirements
 
Price incentives are required if farmers are to develop new cropping patterns.
 
5.7   Proposed Cropping Pattern
 
5.   7. 1 General
 
Future cropping calendars and crop rotations are planned in relation to the seasonal distribution of rainfall. At the same time the fact that the main farm operations need to be spread out in order to allow for maximum utilization of available family labour and farm machinery has been taken into consideration.
 
(i)    Onions cannot be grown safely under heavy rains, and a dry period of 15 days is desirable .jus t before harvest;
 
(ii)   Pulses, groundnuts and soya beans give higher yields when they are grown outside the Maha season;
 
(iii)  Harvesting of all crops is best done during dry weather;
 
  (iv) Heavy rain after heading is liable to cause lodging of the paddy crop.
 
5.  7. 2 Proposed rotations
 
The crop rotations proposed are as follows:
 
Upland rotations
 
(1)   Miscellaneous for self consumption (including fodder crops, vegetables, fruit, nurseries and others);
      
         (2) Onions chillies plant crop and ratoon crop of turdhal (pigeon pea) onions chillies onions green gram (3 year rotation with standing crop
                                 during 80 percent of time);
                                 -
 
(3)     Paddy or maize—chillies (1 year rotation with standing crop during 70 percent of time)
 
(4)     Paddy or maize—groundnuts or soya beans—cow-pea (1 year rotation with standing crop during 84 percent of time);
 
(5)     Paddy or maize—cotton (1 year rotation with standing crop during 75 percent of time).
 
Lowland rotations
 
(6)     Double crop of 4.5 month variety of paddy (1 year rotation with standing crop during 75 percent of time);
 
(7)     Triple crop of 3 - 3.5 month variety of paddy (1 year rotation with standing crop during 80 to 85 percent of time).
 
5.  7. 3 Labour requirements
 
Monthly labour requirements per average acre has been computed for each rotation assuming that land preparation and sowing or planting are spread out over the available time. The estimates of farm labour requirements at full development in farms using 2-wheel tractors are shown in the Table below.
 
 
Farm Labour Requirements at Full Development          
                                          
                                                       Unit: Workdays/average acre
 

       J    F   M A  M   J   J    A   S   O   N   D          Total                                                                                                                                                                                                       year

  
    Upland rotations
 
(1)   Miscellaneous (including         18   18   18  18  18   18   18   18   18   18   18   18           216
               fodder crops)
 
(2)   Onions-chillies pulses              24   32   26   23   27   39   35  19   26   11   20   20            302
 
(3)   Paddy-chillies                         8    12   10   13   20   28    32   19   10     6     5     3           166

(4)   Paddy-oilseeds cow-pea         7    11   5   2    4    14    12   12  12     13    5     3             89
 
(5)   Maize-cotton                          4    6    6     5    4   8     15   15   8       5    3     1            80
 
   Lowland rotations
 
(6)   Double crop of paddy..           1    15   10   5    3    3     5     6    14     6    3      3            74     
        (7)   Triple crop of paddy               10   15   7    2   10    15    7     2    10    15    6      2          102   
 
 

At the beginning of agricultural development, average farm labour requirements are­ expected as shown in Table on the following page.
 
Farm Labor Requirements at Beginning of Agricultural Development
 

 

J

F

M

A

M

J

J

A

S

O

N

D

Total

Year

Upland rotations

(1)   Miscellaneous (including folder crops)

(2)   Onions –chillies –pulses

(3)   Paddy-chillies

(4)   Paddy-oil seeds –cowpea

(5)   Maize – cotton

 

Lowland rotations

(6)   Double crop of paddy

 

 

10

 

 

10

 

07

 

06

08

 

 

10

 

10

 

 

22

 

19

 

24

12

 

 

15

 

 

10

 

 

31

 

16

 

09

15

 

 

18

 

10

 

 

27

 

20

 

03

12

 

 

05

 

 

10

 

 

34

 

23

 

09

06

 

 

01

 

10

 

 

35

 

24

 

25

07

 

 

01

 

 

10

 

 

27

 

24

 

16

12

 

 

03

 

10

 

 

11

 

13

 

02

11

 

 

11

 

10

 

 

20

 

12

 

15

12

 

 

17

 

10

 

 

23

 

18

 

23

16

 

 

08

 

10

 

 

28

 

07

 

08

04

 

 

01

 

10

 

 

21

 

01

 

01

01

 

 

01

 

 

120

 

 

295

 

184

 

141

116

 

 

82

 
   5.7.4. Production cost and benefits
 
            Production cost and benefits have been computed for the different rotations       proposed using two systems of prices.
 
Farm gate prices which are supposed to be set forth in the future for the outputs; 
 
Opportunity prices are shadow process which allow for the cost of agricultural inputs for the nation and for the value of the agricultural production which could be brought abroad. While the local part of input costs can be stated at current prices the foreign components of the actual or potential costs have after consultation with the Central Bank of Sri Lanka been computed at 2.5 times the parity rate of exchange.
 
The balance of production costs and benefits full development is shown in table bellow  

Added Value at full Development

 

 

Produc

tion

value

Seeds

Chemi

cles

PRODUCTION COST

 

Value

added

Machinery

Including

Depreciation

Miscel

laneous

Total

At farm gate prices

 

 

 

 

 

 

 

(2) Onions–chillies – pulse

10,663

471

1,314

495

228

2,508

8,125

(3) Paddy-chillies

5,535

48

1,295

512

185

2,040

3,495

(4) Paddy oil seed cow-pea

3,502

108

574

433

111

1,226

2,276

(5) Maize – cotton

2,800

20

503

387

91

1,001

1,699

(6) Paddy (double crop)

2,800

56

746

386

119

1,307

1,493

(7) Paddy (triple crop)

3,780

84

849

543

148

1,624

2,154

 
The estimated added value, in the very short term is shown in Table below.
 
Added Value in the Very Short Term
Unit  Rs./acre
 

                                                                 PRODUCTION COSTS     `

                                                   Produc-                                                                         Value
                                                   tion                                                                               Added
                                                   value                                                                            (short              
                                                 (short-      Seed    Chemi-    Draught    Miscel    Total       term)
                                                   term)                   cals        animals    laneous
 

At farm gate prices
  (2)  Onions-chilies                       4,187       471      161                        63           695        3,492
  (3)  Paddy-chilies                        2,625       48        195                        24           267        2,358
  (4)  Paddy-oil seeds-pulses          1,743       108        91                           20           219        1,524
  (5)  Maize-cotton                        1,400       20        162                        18           200        1,200
  (6)  Paddy (double crop)             1,400       56        150            154          36           396        1,004
  (7)  Paddy (triple crop)                1,890       84        168            228           48           528        1,362
 
 

5. 7. 5 General cropping pattern
  
It is estimated that about 4 percent of the irrigable uplands would be used for miscella­neous crops for family consumption. At the beginning of the agricultural development this acreage will iii fact be about 13.5 percent of irrigable uplands in order to meet the fodder requirements of draught animals used in paddy fields.
 
The rotation including onions gives the highest value added per acre; with allowance for the market outlets it is supposed that this rotation will be restricted to 4 percent of the uplands.
 
The rotation including uplands paddy and chilies will probably be popular among farmers due to the present high price for chilies. However, it is assumed that market constraints will limit the extension of this rotation to an area of about 15 percent of the irrigable uplands in the projects.
 
It is tentatively proposed that the other two upland rotations one with paddy, ground-nuts, soya beans and cow-pea, the other with maize and cotton, will extend over 47 and 30 percent of the upland area respectively. As two-wheel tractors will not be available at the beginning of the agricultural development, labour requirements per unit-area cropped will be quite high at this stage and it is therefore assumed that only half the targeted area for these two rotations will actually be cropped in the short term.
 
In the low lands, the maximum added value would be got with three crops of paddy per year. However operating this rotation over the whole area would require a high density of tractors or draught animals which would generally be under-utilized due to the seasonal nature of these operations. Thus it seems more realistic to assume that 75 percent of low-lands will be double cropped and 25 percent triple cropped, so as to ensure maximum utilization of farm machinery. In the very short term, it is assumed that only double cropping will be done.
 
 
5. 7. 6 Flexibility of the proposed cropping pattern
 
The proposed cropping patterns do not assure that crops giving the highest value will be the main crops; though the onion and chilies market is presently very attractive for farmers, should it become necessary that these crops be grown on smaller extents, the decrease in the value added to the project would be definitely less than 5 percent.
 
Cotton has not been experiment with in depth in the project areas at the present time. There is however little reason of to think that this crop will not be profitable in the area but should such be the case the substitution of soya   beans, cow-pea and chillies for cotton would not result in a decrease of value added of more than 5 percent in the short term and short term and 8 percent after full development.
 
On the other hand the market prospects for products such as fruit and vegetables have been estimated in a very conservative way and it is possible that more value added  can be obtained through the development of these products which are presently planned for self-consumption only.
 
On the whole the return expected from the project can be considered as conservatively estimated.  
      
Proposed Cropping Pattern
 
                                                                                                 Unit : Percent area
 

 

Very short term

Target

Percent of Uplands

Percent of Low lands

Percent of total area

Percent of Uplands

Percent of Low lands

Present of total area

Paddy

38.5

200

103.1

62

225

127.2

Maize

15

 

9.0

30

 

18

Turdhal (Pigeon pea)

1.3

 

0.8

1.3

 

0.8

Green  Gram

1.3

 

0.8

1.3

 

0.8

Cow-pea

23.5

 

14.1

47

 

28.2

Ground nuts

11.7

 

7.0

23.5

 

14.1

Soya beans

11.8

 

7.1

23.5

 

14.1

Cotton

15

 

9.0

30

 

18

Onions

4

 

2.4

4

 

2.4

Chillies

17.7

 

10.6

17.7

 

10.6

Miscellaneous

13.5

 

8.1

4

 

2.4

Total

153.3

200

172

244.3

225

236.6

 
5.8                Future Farms
           
5.8.1   It is proposed that the agricultural development of the project are be based n the family farms relying primarily on family labour. Exchange of labour between families will naturally take place but the use of hired   labour is not contemplated. A the average farm size will then be a  function of the availability of family labour , the labour requirement corresponding to the cropping patterns and the extent of usage of farm equipment. These average labour requirements are shown in table below. 
 
Average Labour Requirement
 

 

J

F

M

A

M

J

J

A

S

O

N

D

Total Year

At full development

 

 

 

 

 

 

 

 

 

 

 

 

 

  Average uplands

7

11

7

6

8

15

17

11

11

10

5

4

116

  Average lowlands

3

15

9

4

5

6

6

13

13

8

4

3

86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Average project area

6

12

8

5

7

12

12

12

12

9

5

3

104

At the beginning of agricultural development

 

 

 

 

 

 

 

 

 

 

 

 

 

  Average uplands

6

12

9

8

9

13

12

9

9

13

6

3

111

  Average lowlands

1

15

18

5

1

1

3

17

17

8

1

1

87

  Average project area

 

4

13

13

7

6

8

8

12

12

11

4

2

101

 
           Including 5 workdays per acre for the maintenance of irrigation and drainage network in farms and turnouts.
 
Overall peak labour requirements will be 12 or 14 workdays per average acre in one month so that one farm worker will be required for every 2 acres (0.81 Ha) of irrigable land. As the estimated labour force per average farm family is between 1.5 and 2.2 an average farm size of 3 acres (1.215Ha) can be considered as a realistic figure.
 
However, the labour force of individual families is subject to variations spreading over I to 4. On the other hand the cropping pattern of individual farms is subject to varia­tions related to proper decisions of the farmer or to the farm land pattern. Monthly peak labour requirements are roughly the same for paddy lowlands and on the average for uplands, but yearly requirements in the long term are estimated at 86 and 116 workdays per acre respectively (ratio 1 to 1.35). In the uplands, peak labour require­ments in one month can vary accordingly to the cropping patterns over a range of 13 to 39 workdays per acre (ratio I to 3).
 
Some of the land classes (the lowlands) of the project area are suitable for the cultiva­tion of only paddy during any season. A wide range of crops can be grown on the other land classes (the uplands). There is, consequently, a qualitative as welt as a quantita­tive element to be considered in the parcellation of the irrigable area into individual holdings. Qualitatively there is the question of whether individual holdings consisting of only the lowlands would constitute viable farming units in the long term or whether this class of land should always form only a part of a farm unit. Quantitatively it is necessary to decide whether farmers should be allowed the option of purchasing that quantum of irrigable land (up to a specified upper limit) that they can handle effectively and efficiently or whether farms should all be of an uniform size.
 
The limitations to agricultural development are not all of a technological nature. Prob­lems of a structural character could arise when the farming units are not adapted to the. social and economic context of the region or to the land that is being worked. The majority of farmers now operating in and around the project area who were interviewed have indicated a desire to farm both paddy land and upland.
 
It is therefore proposed that the authorities demarcate the irrigable lands that will be allocated to any villager and that thereafter, the farmers of that village be allowed to decide on the allocation of individual allotments within the area in discussion among Themselves and with the authorities within a specified time.
 
For purposes of computation, therefore, it has been provisionally assumed that allot­ments of irrigable farm land will be uniformly 3 acre (1.2 Ha) per farm. No significant change in the cost of land development is anticipated from modifications that might be finally made to this farm allotment pattern.
 
           Farm Investments
 
            5.8.2 Real estate investment
 
The farmers irrigated holdings will be completely developed by the Mahaweli Develop­ment Board. Farmers themselves will therefore not have to bear the cost of land clearing, land levelling, preparation of farm ditches and channels. Planting coconuts, fruit trees, and bananas, etc. for home consumption is presently done by new settlers without the expenditure of any considerable sums pf money. Such investments in the project area will be made by family labour outside peak labour requirement periods.
 
- It is proposed that initially new settlers will themselves erect temporary dwellings for which a grant of Rs. 300/ will be provided. At a later date they can build permanent homes using their own savings or general credit facilities.
 
            5.8.3 Farm machinery investment
 
The highest farm investment costs will be for farm machinery. A detailed inventory of suitable equipment has been prepared with the assistance of the Machinery Designs and Testing Units, Maha Illuppallama, and of local private manufacturers.
 
On the basis of the proposed cropping calendars, the estimated acreage that a 2-wheeled tractor and some other items 01 equipment tan work is shown below :_
 

                                                                                                       Paddy                                  Uplands
                                                                                                      lowlands

                                                                                                  
                  2-wheel tractor and                implements 
...                        12 acres (4.9 Ha)                12 acres (4.9 Ha)
                  Power sprayer                        
...                                                                ...                        40 acres (16.2 Ha)              10 acres (16.2 Ha)
                  Corn-sheller ...                                                                               ...
                                                                ...                                                                                                                                                                200 acs. (81.0 Ha)
 

It is very doubtful whether Government-owned or co-operative-owned machinery would be properly managed and maintained. It is, therefore, suggested that selected farmers be encouraged to purchase and manage machinery until farmers develop attitudes con­clusive to the operation and management of joint ventures.
 
5. 8. 4  Working fund investment
 
Working fund is intended to provide for production costs including labour until the harvest can he disposed of. Labour cost will correspond roughly to the subsistence cost of farm families during 6 to 8 months; it is estimated at an average of Rs. 1,200 per farm. Other costs are estimated, on the average at 50 percent of the annual input costs and of the direct operation costs of farm machinery. Working fund required for average farm is estimated as follows
 

                                                                                                        Short term       Long term
                           Paddy farms             
...                                                    ...                                                                Rs.        1,795         Rs.        2,890
                           Upland farms            
..,                                                    ...                                                                Rs.        1,425         Rs.        2,730
                           Average farms         
...                                                    ...                                                                Rs.      1,575         Rs.        2,797
 

5. 8. 5 Operation and Maintenance Costs
 
Farmers in the project area will be required to pay for the operation and maintenance of the projects and for a part of the capital costs of irrigation works. Since they will receive assured water for two cultivations a year and their income levels will be high, it would be reasonable to expect them to contribute in some measure to the investment effort of the country.
 
In projects of this magnitude, where the development expenditure is something like Rs. 10,000 per acre. it is int1,ciatave that there is reasonable recoupment of the capital expenditure. It is only on the basis of such a recovery that it would be possible to finance further development and extend and enlarge the area of development within the project.
 
This criterion will apply to other agricultural development projects elsewhere where land values appreciate as a result o( the infrastructure and services provided like roads, irrigation facilities, communications and the whole range of civic amenities.
 
It is presumed that farmers savings will progressively finance the agricultural working fund and improvements to housing. It is however unlikely that farmers’ voluntary savings will be of a sufficient magnitude as to enable financing of other new productive investments. It is therefore proposed that a scheme of savings be implemented through the compulsory purchase of their holdings by new farmers. It is proposed that these payments begin 5 years after settlement and payment be completed in 25 annual instalments of Rs. 300 per acre.
 
5.    8. 6  Farm budgets  
 
future farm budgets  have been computed for paddy farms and upland farms for the first year of agricultural development and in the long term. Production pattern per 3 acre (1.215 ha) average farm as expected as in table below.
 
Average Faint Product ion Pat tern
 

                                                                                                      Unit     Paddy  in bushels
                                                                                                                 Other products in cwt.
 
 

                                                                                                                                                     G round­-
                                                         paddy          Maize     Onions    challis           Pulses    nuts (an-      Soya        Seed
                                                                                                                                                       shelled)      beans    cotton

      First Year                                
                                              
           Paddy farm                                                                              300                -             -              -           -             -               -           -
                                Upland
farm                          52               4.5              4.2               3.7           5.5               3.2             1.8              4.5
          Average farms                     151.2            2.7              2.5               2.2           3.3               1.9              1.1              2.7
Long term
           Paddy farms                        652.5                                      -            -            -
                                Upland
farms                      167.4            18               12               8              18.2           14.1            10.6             18
           Average farms                    361.4             10.8           7.2             4.8              10.9             8.5              6.3          10.8

                      
                       Miscellaneous products for home consumption. including fruit, vegetable and animal products are estimated at Rs. 2t*)/- per family per year, in the future.
 
For computation purposes, the cost of hired machinery has been estimated on the high side, and it has been assumed that farmers would pay 110 percent of direct operation costs plus 100 percent of depreciation cost for tractor services. With such rates of hire the profit covered by the owners of 2-wheel tractors would be about Rs.3,000 a year per tractor tinder good management.
 
Interest of V percent on working fund is assumed. I-arm budget of representative farms is estimated in Table below.
 
                                                              Farm Budget of Representative Farms                              unit: Rupees

                                                                                             

                                                                                             

                                                                                             Paddy Farms                  Upland Farms             Average Farms

 


                                                                                               1st           Long            1st             Long            1st            Long

                                                                                              year         tern             year           term              year         term

Production                  

Paddy                                                                                                                                                                                                                     4.200          8.135             728           2,350         2,117         5,064
Maize
                                                                                                                                                                                                                                                                                                                                                                                 180               720            108            432
Onions
                                                                                                                                                                                                                                                         290                                       828            174            497    
chilies
.                                                                                                                                                                                                                                                                                                                1,057         2,266               634         1,360
Pulses               
                                                                                                                                                                                                                                                                                                                               372            1,206            223            724
Groundnuts      
                                                                                                                                                                                                                                                                       285          1.255              171            753
Soya beans      
                                                                                                                                                                                                                                                                       182          1,089              109            653
Seed cotton      
                                                                                                                                                                                                                                                                       450          1,800              270         1,080

Miscellaneous                                                                                                                                                          200             200             200              200             200             200

                                                                                             4,400          9,335          3.747         11,714          4,006         10,763

Faint expenses

Seeds arid chemicals ...                                                                                                                                                                           681           1,800             450          2,475             542           2,205 Machinery and other services                                           507           2,040                                               1,755             203           1,869
Interest on working fund                                
.                                                        161              281             128             299             141              292
Water charges...
                                                                                                                                               .                                                                                               750                -—                                      750

                                                                                            1,349           4,871             578          5,279            886           5,116

Faint income                               ..                                                                                                                3,051           4,464          3,166          6,435         3,120           5,647

       Compulsory savings                                                                                                                                         900              -                   900               -                                                900

       Net income per work-day                         .                                                                12              14               9.5               16               10                15

 
 
5. 9  Services  required by  farmers :
 
      5.9.1  The services  that arc required to help the farmer achieve his production goals are
 
 (i)  Advisory.
(ii)  Training,
(iii) Credit facilities,
(iv) Supplies (Agricultural inputs and related faculties
(v)  Marketing and storage facilities.
 
    5.9. 2 Advisory services  
 
  To the economic planner the farmer Is a producer and as such is expected to create as much added value as he could with the land, water and power resources at his command. It cannot be over-emphasized, however, that the farmer is not only a producer but is also a human being in his own right; a human being with individual attitudes and social  to season are critical to his entire future, since they could mean the difference between profit and loss or even total failure, the difference between progressive betterment or serious indebtedness for a considerable time to follow.
 
 
The paid extension worker often fails to appreciate the fundamental difference between the farmer and himself; fails to realize that influencing the farmer to make a bad decision might create serious financial problems for the farmer for a long time to come, although it leaves the extension worker relatively unaffected since he is a paid employee.
 
The extension worker has, therefore, not only to be competent at his own field of work hut must also have a deep understanding of the rural atmosphere; he must understand the way farmers look at their problems and the sociological and economic aspects of these problems. It is perhaps not incorrect to say that this type of understanding of the farmer and his problems does not generally prevail at the present time. There is then a need for a change of attitudes of extension workers. It is, therefore, recommended that in-service training programmes for extension workers should, in the future include the fundamentals of applied sociology.
 
The agricultural extension worker has a very definite role to play in the implementation of the production programmes of the project area. These include
 
(i)                  Meeting farmers regularly and ascertaining their problems; discussing recommendations that have to be made and assisting them in any adminis­trative matters related for farming.
 
(ii)                Preparation of cropping programmes and in consultation with farmers’ organisations formulation of a package of practices best adapted to the physical potential of the area and the skill of the farmers so that realistic estimates of credit and other input requirements can be made.
 
(iii)               Formulation of education ton programmes including farmer training classes, demonstrations. etc.
 
(iv)              Evaluation oh the applicability ‘and potential effects of new research finding for the area.
 
(v)                Monitoring progress and identifying problems that need the attention of subject matter specialists’ and research staff.
 
In order to carry out au intensive programme along these lutes, the density of agricul­tural extension stalls in the held needs to be increased. .It is proposed that the appropriate stall density would be one Agricultural Instructor (with one K V. S. to asst turn) for every 500 farmers and one Agricultural Officer to co-ordinate the work of 5 Agricultural Instructors.
 
5.   9. 3  Training
 
Proposals are made for training in the following areas
 
i)           Preliminary training of tanners before settlement.
 
ii)          Subsequent regular periods training for farmers.
 
iii)        Specific training for peasant leaders. Office bearers of farmer organisation and tractor owners.
 
(iv)    In-service training for Government officers working in the project area.
 
5.  9. 4 Credit facilities
 
At the beginning of agricultural development existing farmers and new settlers will he faced with the problem of purchasing draught buffaloes and or farm machinery and access to an adequate working fund.
 
Existing institutions described en the Marketing and Credit study are expected to pro­vide credit on the following lines
 
(i)   Settlement loans of Rs. 600 to existing farmers and Rs. 1,200 to new settlers These loans should be repaid within 3 years and will provide the biggest part of the farm working lurid required at the beginning.
 
(ii)   Medium term loans to farmers entrusted by farmer Organisation for the purchase of draught buffaloes or farm machinery These loans should be repaid within 5 years.
 
(iii)   Short term credit for the purchase of agricultural inputs and to meet the operating cost of farm machinery. These loans should as far as possible be provided in kind.
 
 
5.  9. 5 Supply of requisites and related facilities
 
The seed certification programme operated by the department of Agriculture is adequate to meet the needs of seed and planting material in the project area.
 
The distribution of seed let fertilizer and agro-chemicals is the function of the farmer Co-operatives private merchants also deal in agro-chemicals. Credit and supply arrangements need to be geared to ensuring that the necessary inputs are available to the farmer in adequate quantities and at the right time. It is estimated that about 1.2 million cwt. of agricultural inputs will be distributed annually in the project area after full development anti that 60 percent of these requirements will leave to be stocked within the area. Provision is made in the Marketing and Credit study for increasing the storage capacity in the area to adequate levels.
 
Farm machinery will be supplied by private dealers who are or will be agents of manufacturers or importers of machinery in Sri Lanka
. Adequate repair services for 2-wheel tractors and agricultural implements must he provided by these dealers..
 
 
5.  9. 6   Marketing and storage facilities
 
The purchase of paddy is a State monopoly and the responsibility of the Paddy Marketing Board. Maize. groundnut and sow bean will be sold through Farmers Co-opera­tives to the State Oils and Fats corporation. Onions. chilies and pulses which have high demand and are not subject to further processing will be marketed by private traders or Farmers co-operatives, if the  latter are able to get the best prices for the producer.  Marketing of cotton will be done cit her N the State\ National textile corporation or one of the subsidiaries.
 
The quantities of the various commodities which will be produced is shown in table           below.
 
Production Targets
 
 

 

J

F

M

A

M

J

J

A

S

O

N

D

Total

Year

Paddy

Maize

Groundnuts

Soya beans

Onions

Chilies

Pulses

Seed cotton

 

1,827

128

-

-

-

-

6

-

3,319

128

-

-

56

4

1

-

 

-

-

-

-

-

4

-

-

-

-

-

-

-

-

3

-

639

-

-

-

-

-

1

-

-

-

200

150

28

-

-

32

527

-

-

-

29

19

-

96

1,955

-

-

-

29

48

-

96

1,167

-

-

-

28

38

120

32

-

-

-

-

-

-

126

-

 

-

-

-

-

-

-

-

-

 

--

-

-

-

-

-

-

-

 

8,534

256

200

150

170

113

257

256

 
5.9.7        Cash flow balance of representative farm
 
            The cash flow farms, the part of farm income available for consumption, housing etc. will not       be less than Rs. 2,200 in any year and will exceed Rs. 3,000 after nine or ten years. The labour requirements on these units will be about 260 work days per year and the return          available to farmers per work day will be about Rs. 8.5 to 11.5. In upland farms, available           incomes per work in the region of Rs. 3,000 after 3 years and exceed Rs. 5,000 after nine to         ten years. The corresponding labour requirement will be 335-350 work days per year with the           return of Rs. 9 to 14 work day.