Pattern of farm level capital formation and its impact on the farm production efficiency: An economic analysis in two contrasting regions of Karnataka state, India
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A study on farm level capital formation in two contrasting scenarios of agricultural development
revealed that by and large capital formation was more on large and irrigated farms. The aggregate
capital formation was higher in the progressive area than in less progressive area. The priority of
investment was more on irrigation development. In the less progressive area, among rainfed farms,
investment was more on livestock and perennial crops. The mean technical efficiency was higher in the
more progressive area among all types of farms vis-à-vis less progressive area as a result of higher
capital formation on productive assets.
