Adaptation of Farming Community to Climatic Risk:Does Adaptation Cost for Sustaining Agricultural Profitability?

Adaptation strategies that can minimize the negative effects of climatic risk were implemented in over 2000 farms in 12 villages of Mewat district in Haryana, India. Detailed household (HH) level data from 120 farm families for two periods (prior to intervention and end of project period) indicated: (i) agricultural profit of adapted farmers was more than that of non-adapted farmers in all strata according to the difference in difference model; (ii) non-adapted farmers in <4 acre groups have to either alter the existing agricultural practices to reduce management cost and increase profit or incur additional cost for adaptation; (iii) large farmers may have to rationalize their management investments for gaining more profits; (iv) the profit is not directly proportional to the cost of adaptation, if any, among different strata of farmers; (v) agricultural income alone cannot sustain small and marginal farm (<4 acre) families, however with adaptation a self-sustaining agriculture could be achieved; (vi) suitable adaptation can reduce the cost of farm operations, and increase agricultural profits as well as adaptive capacity to climatic risks; (vii) additional cost is not always required for adaptation, and rationalizing agricultural expenditure is essential to adapt to climatic risks. At community level differential costs of adaptation and profits are likely. Policies for incentivizing these 'responsive adaptation' costs for small and marginal farmers would be required. However, investments may be required for establishing permanent agricultural-infrastructure for managing water and agricultural produce in order to sustain agricultural profitability.