Income, saving, investment, and consumption pattern of farm households in Karnal district of Haryana

The findings of the study revealed that on an average, the operational holding was 3.34 ha which varies between 1.40 ha to 7.24 ha on small and large category of farms and land rent was found to be `75916 per hectare. The leased in land was higher on large farms (1.23 ha), followed by medium (0.37 ha) and small category of farms (0.06 ha). More than seventy per cent farmers highlighted that lower income and savings, lower access to institutional credit and inadequate loan, higher cost of new machinery, lower output prices of agricultural crops, higher prices of inputs, higher rate of interest, higher family consumption expenditures, higher cost of education and small size of holding hindered the capital formation on farms. Hence, there is a need to encourage the investment on farms through liberal financing at lower rate of interest and making higher public investment on agricultural infrastructure development. The investment on productive farm assets was having positively significant relationship with income earnings and size of operational holding, while, non-significant with literacy and age of the respondent.