The present study was designed to investigate the effects of disease on time spent by family and hired labor on farm activities. The effect of illness on cost incurred on farm activities and revenue earned from agriculture has also been examined in detail. The reason behind choosing malaria is because of its strong association with the quality of surrounding environment especially in the case of farm workers who are compelled to work in the environmental conditions quite suitable for the transmission of malaria. The effects of health shocks due to malaria are segregated according to three stages of production: land preparation, field management, and harvesting stages. Simultaneous equation model was employed using cross-sectional data collected from 252 farm workers through a pre-tested questionnaire. Farmers' living environment was found to be contributing in the spread of disease. Results also show that malaria affects labor time at harvesting stage as it is more labor-intensive stage of production. We find that malaria significantly affects the health of farm workers and their families forcing farm families to substitute family labor with hired labor. Further, the cost incurred on cure of disease significantly adds to the cost on agricultural production. This consequently leads to a substantial reduction in revenue. The effect of the cost incurred on prevention and cure of disease was also found negative on revenue. The study suggests that, in order to make farmers more productive, there should be malaria interventions specifically targeting the health of farmers. It is also suggested that, for successful malaria interventions especially in irrigated areas, the magnitude of the disease on different stages of production should be given due consideration.
Keywords: Agriculture; Environment; Family labor; Hired labor; Malaria; Pakistan; Revenue.