ECON – 365

ECON – 365: FARM MANAGEMENT, PRODUCTION AND RESOURCE ECONOMICS

Credit:2(1+1)

THEORY:

Meaning and concept of farm management, objectives and relationship with other sciences. Meaning and definition of farms, its types and characteristics, factor determining types and size of farms. Principles of farm management: concept of production function and its type, use of production function in decision-making on a farm, factor-product, factor-factor and product-product relationship, law of equi-marginal/or principles of opportunity cost and law of comparative advantage.

Meaning and concept of cost, types of costs and their interrelationship, importance of cost in managing farm business and estimation of gross farm income, net farm income, family labor income and farm business income.

Farm business analysis:  meaning and concept of farm income and profitability, technical and economic efficiency measures in crop and livestock enterprises. Importance of farm records and accounts in managing a farm, various types of farm records needed to maintain on farm, farm inventory, balance sheet, profit and loss accounts. Meaning and importance of farm planning and budgeting, partial and complete budgeting, steps in farm planning and budgeting-linear programming,  appraisal of farm resources, selection of crops and livestock’s enterprises.

Concept of risk and uncertainty occurs in agriculture production, nature and sources of risks and its management strategies, Crop/livestock/machinery insurance – weather based crop insurance, features, determinants of compensation.

Concepts of resource economics, differences between NRE and agricultural economics, unique properties of natural resources. Positive and negative externalities in agriculture, Inefficiency and welfare loss, solutions, Important issues in economics and management of common property resources of land, water, pasture and forest resources etc.

PRACTICAL:

Preparation of farm layout. Determination of cost of fencing of a farm. Computation of depreciation cost of farm assets. Application of equi-marginal returns/opportunity cost principle in allocation of farm resources. Determination of most profitable level of inputs use in a farm production process. Determination of least cost combination of inputs. Selection of most profitable enterprise combination. Application of cost principles including CACP concepts in the estimation of cost of crop and livestock enterprises. Preparation of farm plan and budget, farm records and accounts and profit & loss accounts. Collection and analysis of data on various resources in India.

Practical (Experiments):

1) Basic concepts and terms

2) Determination of optimum input and output, and least cost combination of inputs

3) Determination of profitable combination of products and application of principle of equi-marginal returns

4) Seven types of costs and their computation

5) Farm cost concepts and their imputation procedure

6) Depreciation methods

7) Farm holding survey

8) Livestock – Farm survey

9) Estimation of cost of cultivation and farm income measures of major crops

10) Farm inventory analysis

11) Farm financial analysis – Preparation and analysis of balance sheet

12) Preparation and analysis of profit and loss statement

13) Preparation of farm plans

14) Preparation of enterprise budget and partial budge

15) Study of farm management aspects related to Agriculture college farm

16) Final Practical Examination