Abstract
The small farmers and landless in India are faced with the vicious cycle of low incomes, low savings, low investment and uneconomic size of operational holdings and often are nonviable. Using data for the Haryana State of Northern India for 1977/78, the linear discriminant function was used to identify those factors which will make the majority of small farmers and landless in India a viable entity. Analysis of these data indicated that per hectare fertiliser use, area under high yielding crop varieties, operational size of holding and working capital are the factors which affect the viability of the small farmers and landless. As compared to the simple regression analysis discriminant function approach has been found an effective tool for discriminating the two social groups and for predicting the sponsored social change. However, the use of the discriminant function may be limited if the qualitative independent variable has more than two classes and its orderings are not in sequence.
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