Impact of Group Farming Program on Farmers' Productivity: Case Study of Paddy Farmers in Muda Area, Kedah

Nowadays, the problem of low standard of living among paddy farmers in Malaysia is very apparent. Many efforts have been done by government in order to help them to increase their paddy production as well as their income. Thus, this study sought to measure the effectiveness of group farming program as well as to estimate the impact of socio-economic variables and subsidy on the total paddy production of farmers in the Muda area. This study also aimed to analyze the demographic background of farmers and paddy cultivation as well as to measure the standard of living of farmers in the area. Data collection was through well structured questionnaires administered on 664 respondents selected through random sampling technique. The methods of analysis used were descriptive statistic and production function analysis using the Ordinary Least Square (OLS) criterion to estimate the parameters of the production function. Results showed that majority of the farmers were elderly and married. Also, they have large household size, low level of education and many years of experience in paddy cultivation as well as cultivate small farm holdings. Result further showed that only 10 Tons Project, Projek Ladang Contoh, age, household size, educational level, land ownership and subsidy had significant effect on farmers’ total production of paddy. Paddy Estate Project, gender, years involve in paddy cultivation and farm size had no significant effect on the farmers’ total production of paddy in the study area. Five policy implications, including the need for implementation of more group farming programs, involvement of more youths in paddy cultivation activity, provision of early retirement scheme for elderly farmers, enhancement of educational level of farmers and improvement of the subsidy delivery system were made.