Beginning with Johnson (1950) and Cheung (1969), who led the way to argue for sharecropping, Reid (1973, 1977) and Alston and Higgs (1982), among others, have argued that sharecropped farms yield as much output as rented or owner-cultivated farms in the American South.
Our hypothesis is that, given the economic situation and institutional arrangement after the Civil War, sharecropping in the postbellum South was desirable because sharecropped farms could be more productive than owner-operated farms and perhaps more productive than rented farms.
The other explanatory variables, area sharecropped
, the number of family males, and remittances, were insignificant.
Therefore the third alternative will be significant, with landlords resuming their sharecropped out area to self cultivate it.
So tractors, will permit the resumption of sharecropped out area for self cultivation.
Since this operated area could not be exceeded further, sharecropped out area remained high at approximately 50 percent of the village area.
Profits per self cultivated acre above 250 acres will be equated to non operators profits per sharecropped out acre above 250 acres;
Finally, non operators were expected to significantly increase their value of tubewells per farm in an attempt to increase their rental share per sharecropped out acre by providing tubewell water to their tenants.
As expected these non operators constrained from resuming sharecropped out area for self cultivation to increase their profits per acre disinvested in agriculture, through sale of sharecropped out area.
Important characteristics specific to the canal colonies are: a relatively less concentrated distribution of the operated area, a relatively low incidence of sharecropped area, a canal irrigation system established earlier, and therefore more developed factor markets for land and labour.
So, in Chak 323, the exogenously given HYV-induced tendency to increase operated area by resuming sharecropped area and increasing leased in and owned area would be expected to operate unconstrained.
The ability to evict sharecroppers and resume sharecropped out area for self-cultivation was increased by the state's maintenance of an overvalued exchange rate which made tractorization cheaper, and the direction of agricultural credit largely towards tractors.
Sen (1981) explains the coexistence of large and small farms, especially small sharecropped farms on the basis of the exploitation of the cheap labour of small farms by the large.
Approximately 50 percent of the colony area was sharecropped
out by absentee landlords.
farms are mainly in the range of 2-5 hectares, but they have declined sharply in number and area.