I want to find and analyze the factors affecting the participation of poor and marginal farmers into Farmer Producer Companies or FPOs. How shall I proceed so that I can get most of the critical factors underlying it.
Best way is to conduct farmer survey that includes both participants and nonparticipants. Collect as much information from each farmer through face to face interview. Compile the data and develop binary variable for participation (1) and nonparticipation (0). Logistic regression could be used to quantify influence of factors on the probability of farmer participation.
Here participation of farmers in FPO is a dependent variable and try to identify as many dependent variables that would influence participation.
To decide about independent variables, consider the dependent variable that is participation in FPO on an Impact framework Input-Output--Outcome - Impact and then frame hypothesis
for example age of the members influences participation
education of the members influence participation likewise
First, you should identify main output variable such as income, yield, etc.
Second, you analyse data with dependent variable: income, yield (Y) and participant as one dummy independent variable. If the participant can affect to dependent variables. Participant has good effects to them.
Third, compute the data with binary variable as Timothy O Randhir guides
The best way to set the dichotomous variable 0 to 1; yet the most important thing will be to identify the factors of participation to tap these:
First; use multistage sampling techniques and reach those specified households that can go with your objective.
Second; use different methods of collecting your data, here may be implement a kind base line assessment with check lists using key informants at the study area grouping male and women.
Third; from your quick group discussions with the check list develop a household formal questioners for individual interview here literature views can help you to identify factors in-addition to the group discussion.
Fourth; for instance participation may be affected by variables like: family size, educational level; high base price; credit ; income; consumption; different motives; speculation; etc can be few factors yet the factors depends on the specific sample cultural, economics, political and other institutional factors that influencing the participation.
As suggested by Timothy O Randhir, it is Important to have the small sample of control farmers who are not part of the FPOs, which will enable you to compare and contrast the specific impact of the FPOs in terms of livelihood enhancement of the participants vis a vis non-participants. In this case, you may certainly examine the impact of FPOs on prices (price margins the participants realize) and farm business income earned by the participants. You may also gather information/ data concerning the other benefits (security/ risk aversions) as realized by the participants being part of the FPOs.
First undertake literature review to identify key actors affecting the participation of poor and marginal farmers into Farmer Producer Companies or FPOs. After listing the key variables, then , you can use factor analysis for the problem. For details you can visit http://www.theanalysisfactor.com/factor-analysis-1-introduction/