Abstract
The study aimed to maximize net farm returns and employment in Punganur Mandal, Andhra Pradesh, by optimizing crop mix and resource allocation under different capital environments. Sample farmers were categorized into small, medium and large groups based on land holdings, with 120 participants. Two linear programming models were employed with restricted cash availability and relaxed borrowing. The optimal models demonstrated potential increases in net farm returns: 58.4, 35, and 24.8 per cent for small, medium and large farmers, respectively. Adequate borrowing played a significant role in facilitating higher returns. The study emphasized the importance of systematic farm planning. It highlighted the role of extension agencies and financial institutions in supporting farmers' credit needs, and also income and employment could be improved with existing resources.
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