This paper investigated the farm level diversity in operation and farm performances under two different governance situations in irrigation systems of Punjab Province of Pakistan: Farmer-Managed (FMIS) and Government-Managed Irrigation Scheme (GMIS). Questionnaire surveys and multivariate analyses were conducted. Farms typology was developed based on farm size. Results reveal a water-land-farming strategy nexus. Larger farms perform better in both schemes. Wheat cropping is a strategic choice, specialized, and exclusive, with low input, and low income. Conversely, maize and rice cropping tit well in diversification and intensification strategies, leading to higher farm income. Also poor financial basis and extension services for smaller farms do not support intensification and diversification. The paper shows that productivity of production factors, level of intensification, farm size are closely interlocked, in a general context of poor performances and institutional reforms. Groundwater access is also a key to success, since canal irrigation only cannot sustain an intensification-diversification process. The paper concludes that transfer of canal irrigation management to farmers will not solve all issues, and yet remains probably the only long-term solution. Areas for public intervention on, inter alia, land, finance, extension, markets remain necessary in FMIS and towards smaller farms.
