Profitability and determinants of protected vegetable farming in Nepal

Abstract

AbstractProtected vegetable farming has emerged as a potential approach to improve the yield and quality of produce around the globe. In Nepal, it has a short history since 1996, but over the past decade, investment in protected structures has been gaining momentum. This paper discusses the findings of the study in the area of profitability and the determinants of protected vegetable farming in Nepal. The study was conducted in seven districts of Nepal by selecting 90 respondents growing vegetables under protected structures. Descriptive statistics and multinomial logistic regression were used to analyze data. The financial analysis showed a significantly higher benefit–cost ratio and payback period in temporary structures than those in semi-permanent and permanent structures. The productivity of vegetables under different types of protected structures was statistically similar to average productivity of 191.55 mt./ha/year. The multinomial logistic regression studied among 15 explanatory variables found 10 explanatory variables to be significant whether at 1% or 5% or 10% probability level. The variables, namely, gender, education, family type, household members involved in agriculture, experience in vegetable farming and subsidies received, were found to have a significant and positive influence on the adoption of semi-permanent and permanent structures, whereas the variables, namely, age, membership in farmers group, record keeping and technician visit, were found to have a significant and negative influence. The findings of the study would have implications for the policymakers, suppliers of the structure installment materials and farmers regarding the promotion and adoption of different types of protected structures.

Keywords

• protected structures
• hi-tech
• benefit–cost ratio
• adoption
• multinomial logit