Evidence-based farm planning: Crop cost and return guide for Bangladesh

Policy brief Firms, Trade and Sustainable Growth

This study developed division-level crop budgets and crop zoning maps for major cereals and rotational crops to support more effective agricultural planning in Bangladesh. Spatial analysis identified key production hotspots, including Rangpur for Aman rice and maize, Rajshahi for mustard and wheat, and Khulna for lentils, highlighting important regional differences in crop suitability. Results showed that mechanised farming generally delivered higher gross margins than labour-intensive systems. The HSATE digital crop budget tool can support profitable farm planning and evidence-based policy development aligned with national agricultural and climate adaptation goals.

  • This study developed crop budgets for major cereals and rotational crops at the division (first-order administrative unit) level to enable better crop planning in Bangladesh.
  • Crop zone mapping identified the Rangpur division as a hotspot for Aman rice and maize, and the Rajshahi division as a hotspot for mustard.The Rajshahi division was identified as a wheat production hotspot with no statistically significant hotspot patterns for wheat area. But district-level (second-order administrative unit) analyses indicated the Rajshahi division as a wheat hotspot. Similar granular hotspot patterns were evident for Boro rice in the Rajshahi division and lentil in the Khulna division.
  • The per-hectare return over variable costs of major cereals and rotational crops indicates that for both farmer-owned machinery and custom-hire machinery markets, the gross margin was higher with more mechanised farm operations than manual labour-intensive farming. 
  • The open-access digital crop budget planning tool available at the Hub for Smallholders Agri-Tech Economics (HSATE) website would allow stakeholders to identify profitable cropping, farm management and machinery markets alternatives, and policy formulation.
  • Evidence supports crop zoning and region-specific crop budget planning to address spatial agroclimatic and economic heterogeneity. This could be synergised with Bangladesh's national agriculture, technology diffusion, climate change, and adaptation policies.