Farm Business Income and Net Household Income of Farmer Households in Punjab-A Comparative Study

Abstract

After showing a remarkable performance during the Green Revolution, the Punjab economy has entered into a new era of agrarian distress where farmers are seen struggling for their survival. A big mismatch between the costs and returns has made agriculture a highly unprofitable and unattractive profession for the majority. Falling rural consumption and suicides among farmers are just the tip of the iceberg while a big storm seems to lie underneath. The current situation in the state demandes serious rethinking for the revival of the economy. This article is based on a primary study conducted in wheat-cotton and wheat-paddy belts of Punjab. It attempts to calculate the farm business income (FBY) and net household income (NHY) of the farmers. The factors that would help us to explain the difference in the income realized by the farmers in these two regions have also been explored.