Economic Analysis on Crop Diversification of Farm households in the Selected Township, Southern Shan State

The purpose of this study was to identify the degree of crop diversification and socio-economic status of farm households to measure marginal analysis on crop diversification in Taunggyi district, Southern Shan State in 2013. A simple random sampling technique was used to sample size of 150 farm households with structured questionnaires. Herfindahl method (Hd) was employed to compute the diversification index. Data were analysed by using descriptive statistics and gross margin analysis to measure the profits of crop production. The results revealed 60% and 40% of farm households in specialized farming and diversified farming, respectively. Finding could be interpreted as decrease intensification of crop diversification among farm households. Crop diversification index showed that an average index was 0.81 and 0.39 in low and high diversified group, respectively. About 77.7% and 83.3% of household heads in low and high diversified groups were males. Average family size in both groups was 5 persons family-1. Most of low farm household heads (76.7%) had only primary education. High farm household heads (35%) had primary education as well as higher education. In addition, 31.3% of low and 29.7% of high farm households received formal credit and 13.1% of low and 9.4% of high farm households received credit from UNDP. Findings indicated that 68% of low farm households cultivated comparatively small land area than high diversified group. Rice-based and maize-based cropping patterns were mainly practiced in the study area. In Nyaung Shwe and Sesai Townships, 60% and 29% of low diversified group mostly practiced mono cropping. In Pindaya Township, 58% of high diversified group mostly practiced multiple cropping. Cropping intensity of low and high diversified groups was 109% and 133%, respectively. In gross margin analysis, the whole year round vegetables cultivation was the most profitable crop in low and high diversified groups (1.99 and 1.96 BCR). Paddy-Oilseed-vegetables cropping was the second profitable pattern with1.81 of BCR in high diversified group. Maize, the second most profitable crop, in mono cropping was the most efficient capacity in labour used