Abstract:
In 1993,76 farms that received an interest-free cattle loan and 19 neighbouring control farms were surveyed
to evaluate technical and economic performance, land use and gainful self-employment in small-scale
farms, established on abandoned marginal tea land in the mid country of Sri Lanka. Five main areas
involved were: Galaha, Gampola, Nawalapitiya, Rikilligaskada (Red Cross village) and Menikhinna
(Rajawelle). All control farms had obtained cattle between 198S and 1993 through cash purchase or interest
bearing loans. Project loan repayments in 36 fixed monthly reductions of the milk pay cheque, were
satisfactory but could not be recovered in full from the project animal's lactations. Dairy cattle were still
found on 93% of project farms and of these 77% sold milk at a rate of 4.8 1/d, while all control farms had
dairy cattle with 79% selling milk at 6.81/d. Home milk consumption was about 0.61/d per project family of
5.32 persons and 0.7 1/d for a control family of 4.74 persons. Peak milk yields averaged around 7 I/d over
lactations and average daily milk yield per cow in milk was 4.7 litres (project farms) and 4 litres (control
farms). Overall long calving intervals of 507 days (n=75) and mortality from tick borne diseases require
more technical attention. In NADSA farms, milk, vegetables and perennial crops contributed 66,15 and
18% respectively to monthly farm gross margin (Rs. 769) and 32,8,9% respectively to monthly family gross
margin respectively ( Rs. 1,582 with 51% for off-farm cash receipts). On control farms, these contributions
were 81%, 1% and 18% to farm (Rs. 747) and 46,0,10% to family gross margin respectively (Rs. 1,331 with
44% for off-farm receipts). On control farms, milk sales only contributed significantly to farm gross margin
and off-farm cash and milk sales to family gross margin. Milk production proved attractive for farm and
family gross margin, land improvement (mentioned by 64% of farmers), and livestock sales (Rs. 1,000 per
year), while crops so far contributed mainly to subsistence food and some money generation (vegetables and
perennials). However, farmers still depended on Government food support to balance their average
monthly family cash needs of Rs. 2,000.
