Study of factors affecting farming household income - A case study of Samrong Commune, Kompong Cham Province, Cambodia

By using cross sectional data collected from 51 farming households mostly grown rice for income generation in one commune in Cambodia, this study aims at investigating the factors affecting farming household income with two specific objectives (i) to compare farm size, productivity, production cost, and profitability between low income and high income household; and (ii) to analyze the main factors (farm size, labor and capital) affecting rice output and the relationship between farm size and household income. To address these objectives, this study used comparative analysis, income statement analysis, cost concept/function, Production function analysis (Cobb-Douglas Production Function), and simple regression analysis. The result's of the study find out, the similarities and differences between low income household and high income household. Rice output in the study area was characterized by decreasing return to scale. Rice Marginal Cost crosses Marginal Revenue at approximately 17,482 kg (around 3.5 hectares). If the expected price of rice is 515 Riels/Kg, 17,482 kg would be the profit maximizing level of rice production. An increase all resources (farm size, labor, and capital) by 10 percent will add approximately 9 percent to total rice Output. Farm size is the main factor affecting rice outfit it, and labor input ranks as the second factor in producing rice output, while capital input contributes little to produce rice output. There is a linear or positive relationship between farm size and household income. Accordingly, increased fat-in size could be a good solution to increase household income. Furthermore, more emphasis should be given to secondary source of income to supplement rice income.