Determinants of agricultural commercialization and mechanization in the hinterland of a city in Nepal

In view of the significance of agricultural commercialization for rural development, this study analyzed factors determining agricultural commercialization and mechanization in the hinterland of an urban centre in Morang district, Nepal. Information needed for the study was collected through a questionnaire survey, covering 120 farm households, and group discussion and key informant interviews. The regression analysis of determinants of agricultural commercialization revealed four significant variables, namely, the amount of inorganic fertilizer used, area under tractor-ploughing, area under pump-set irrigation and landholding size. The predicted R value of 0.87, R square of 0.75, and adjusted R square of 0.75 indicate the high explanatory power of the model as a whole. The regression model related to the area under pump-set irrigation predicted the degree of agricultural commercialization and the distance from the city as significantly influencing factors, with a predicted R value of 0.79, R square of 0.63, and adjusted R square of 0.62. The analysis of determinants of the area under tractor-ploughing found only the degree of commercialization as a significantly influencing factor, with a predicted R value of 0.77, R square of 0.59, and adjusted R square of 0.58. In both instances of farm mechanization, the degree of commercialization is the most influential factor, indicating the significant role of mechanization in agricultural commercialization. The major policy implications of the findings of the study are outlined.