Average Net Farm Income Research Articles

Exploring variation in economic, environmental and societal performance among Dutch fattening pig farms

Sustainable production of pork requires farms that are economically viable, ecologically sound and socially acceptable, both now and in the future. Promising mitigation options to improve the integrated sustainability of a pig farm can be deduced from variation in their economic, environmental and societal performance. This study explores the variation in sustainability performance among 27 specialized fattening pig farms in the Dutch Farm Accountancy Data Network. Moreover, the combined sustainability performance is quantified, in order to identify the characteristics of best performing farms.To quantify the economic performance we used the net farm income (NFI) and labor productivity. With a life cycle assessment (LCA) the environmental performance was quantified for land occupation (LO), non-renewable energy use (NREU), global warming potential (GWP), eutrophication potential (EP) and acidification potential (AP). To quantify the societal performance the usage of antibiotics and the pig mortality rate were used.The average NFI was −€3.1 per 100kg slaughtered weight (SW), produced with a labor productivity of 0.4h per 100kg SW. To produce 100kg of SW, a total LO and NREU were needed of respectively 1121m2 and 2802MJ. GWP was 546kg CO2-eq per 100kg SW, of which 31% CO2, 7% from CH4, and 62% from N2O. Total EP was 61.4kg NO3−-eq/100kg SW, of which 53% from leaching of nitrate and 23% from phosphate. Total AP was 5.3kg SO2-eq per 100kg SW, of which 79% NH3, 11% from NOx and 10% from SO2. The use of antibiotics per 100kg SW averaged 18.9 daily dosages per animal year. The number of deceased pigs per 100kg SW averaged 0.03.There is a high variation in economic, environmental and societal performance among fattening pig farms. Farm characteristics related to scale positively affect economic and environmental performance. A low feed intake and a feeding ration with a high share of wet by-products positively affect the environmental performance. To identify explanatory farm characteristics from FADN for societal performance, more suitable indicators are needed.Best performing farms, which outperform on economic, environmental and societal performance do exist and are on average larger and are feeding a higher proportion of by-products. To understand the characteristics of an integrative sustainable fattening pig farm, more insight is needed in the entrepreneurial characteristics and the drivers to manage and perform in a more profitable, environmental friendly and societally acceptable way.

Profitability and constraints to dry season vegetable production under fadama in Sudan savannah ecological zone of Sokoto State, Nigeria

Many developing countries face major challenges to achieve food security in a sustainable manner, considering the increasing population, limited availability of land and water resources. Thus, the study centered on analysis of profitability of small-scale dry season vegetable production under fadama in Sudan savannah ecological zone of Sokoto State, Nigeria. A three-stage sampling technique was employed to collect data from one hundred and sixty respondents distributed in eighteen villages in the study area. Descriptive statistics and farm budgeting were employed to analyze the data for the study. The study revealed that vegetable farmers obtained an average gross margin and net farm income of N190, 024.36/ha and N173, 465.58/ha, respectively. While the return to owner’s labor and management is N84, 951.88, the rate of returns to investment is 97.20%. This indicates that small-scale dry season vegetable production under fadama in the area is profitable. From the viewpoint of this study, certain crops and crop mixture are more rewarding. It is therefore recommended that quite a substantial proportion of land should be devoted to the cultivation of these crops. Key words: Profitability, constraints, dry season vegetable farming, Sudan savannah, fadama

Profitability and constraints to dry season vegetable production under fadama in Sudan savannah ecological zone of Sokoto State, Nigeria

Many developing countries face major challenges to achieve food security in a sustainable manner, considering the increasing population, limited availability of land and water resources. Thus, the study centered on analysis of profitability of small-scale dry season vegetable production under fadama in Sudan savannah ecological zone of Sokoto State, Nigeria. A three-stage sampling technique was employed to collect data from one hundred and sixty respondents distributed in eighteen villages in the study area. Descriptive statistics and farm budgeting were employed to analyze the data for the study. The study revealed that vegetable farmers obtained an average gross margin and net farm income of N190, 024.36/ha and N173, 465.58/ha, respectively. While the return to owner’s labor and management is N84, 951.88, the rate of returns to investment is 97.20%. This indicates that small-scale dry season vegetable production under fadama in the area is profitable. From the viewpoint of this study, certain crops and crop mixture are more rewarding. It is therefore recommended that quite a substantial proportion of land should be devoted to the cultivation of these crops. Key words: Profitability, constraints, dry season vegetable farming, Sudan savannah, fadama

Profitability of Contractual Bread Wheat Seed Production in Mecha District of Amhara Region, Ethiopia

The study was undertaken to examine the profitability of contractual bread wheat seed production in Kudmi village of Mecha district in Amhara region, Ethiopia. Primary data were collected from fourteen seed growers using structured questionnaire. The analytical tools employed include descriptive statistics and average net farm income. Results revealed that the average total cost of production per hectare is Br 8,478.82 ($ 493.82); the average gross revenue per hectare is Br 17,783.72 ($ 1,035.74); and hence the average net profit per hectare is Br 9,304.90 ($ 541.93). The findings also showed that an index of 1.10 economic efficiency of certified bread wheat seed production indicating that contractual bread what seed production is a profitable venture in the study area. The study identified non- application or improper application of inputs (fertilizers and seed) and not exercising the recommended management practices were the major problems in seed production. It is necessary to provide adequate extension service for farmers to promote better seed management technologies and efficient use of agricultural inputs.

Resource use efficiency in garri processing in some selected Local Government Areas of Ekiti State, Nigeria

This study examined the productivity of the resources used in Garri processing in some selected Local Government Areas of Ekiti State. Data were collected through the use of a well structured questionnaire administered to eighty (80) randomly selected respondents (processors) in this area of study. This is to determine; the resource use efficiency, the socio-economic characteristics of the processors, the cost and returns and also to isolate the major factors influencing Garri processing in the State. The data collected were analysed using both the descriptive and econometric techniques as tools of analysis. The results showed that, labour (x1), operating capital (x2) and land (x4) were the major factors influencing the output of processed Garri in Ekiti State, Nigeria. Garri processing in the area was also found to be profitable with an average net farm income of about N24,445.63 per month while the capital turnover also indicated that for every N1.00 invested in this enterprise a return of 36kobo is expected. This might be attributed to the increase in the demand for this commodity and its by-products in the world market. It is therefore recommended that a conducive environment should be provided to both the producers and processors for its sustainability at the production, processing and marketing levels. International Journal of Agriculture and Rural Development Vol. 7(1) 2006: 105-111

Income Is Development: KickStart's Pumps Help Kenyan Farmers Transition to a Cash Economy

sistence lifestyle into a primarily cash-based economy. Ability to earn an income is suddenly a paramount skill. Yet approaches to encouraging development continue to be based on the assumption that the primary need of people in poor places is something other than a way to make money—better healthcare, education, water, housing, and so forth. This is misguided. Providing these will not end poverty. In a cash economy, money is the primary means to securing other vital resources. Except in a few very remote areas of the world, if you ask a person in a poor place what they need most, they will tell you that it is a way to make more money. The way to address the challenge of persistent poverty is to create sustainable income-earning opportunities for millions of people. Income is development. I am the co-founder of KickStart, a nonprofit social enterprise that has for the past fifteen years employed design principles to address the poverty challenge in Kenya and Tanzania. KickStart designs and markets low-cost pumps and other capital equipment that have been used by thousands of farmers to establish highly profitable commercial enterprises. This market-based approach to development “kick-starts” a sustainable cycle of wealth creation, brings poor people into the middle class, and eradicates the effects of poverty from the ground up. KickStart’s best-selling tools are foot-powered irrigation pumps that enable poor farmers to switch from subsistence to commercial irrigated farming. With irrigation, entrepreneurial farmers can grow three or four crops of high-value crops per year, greatly increase their yields, and harvest the crops in the off-season, when the prices are highest. The average net farm income of farmers who use our pumps increases by a factor of ten—from $110 to $1,100 per year. In Africa this is a lot of money. For the first time they can afford to properly feed and educate their children, pay for healthcare and plan for their futures. To date, over 40,000 smallscale farmers and entrepreneurs in Africa are using KickStart’s pumps and other technologies to run profitable small businesses. Between them they generate over $40 million per year in new profits and wages, and total revenues equivalent to over 0.5% of the GDP in Kenya, and 0.2% of the GDP in Tanzania.

Monitoring nutrient flows and economic performance in African farming systems (NUTMON): IV. Linking nutrient balances and economic performance in three districts in Kenya

At the national level, agricultural production in Kenya is characterized by a negative nutrient balance and a downward trend in food production per capita and can therefore be classified as unsustainable. However, little information is available concerning ecological and economic sustainability of the various production systems at farm level. A one year monthly monitoring activity was conducted in the season 1995/1996 in three districts with the participation of 26 farm households covering the major existing farming systems in these districts, in which data were collected on agronomic and economic aspects of the farm management. The average N-balance at farm level is −71 kg ha −1 yr −1 with large variations among farms ranging from −240 kg ha −1 yr −1 to +135 kg ha −1 yr −1; the average K-balance is slightly negative, the P-balance slightly positive. Net farm income shows no relation with the nutrient balance. A high market orientation on the other hand correlates with a more negative N- and K-balance. The market-oriented farms located in the highly populated areas are characterized by intensive crop and livestock activities, import nutrients through fertilizers and/or animal feeds, but insufficient to compensate the outflow through marketed products, leaching and erosion. The average annual net farm income amounts to US$ 1490 per farm, with large variations among farms. Average returns to family labour (US$ 2.2 per day 1) and returns to land (US$ 91 per ha 1) are comparable or higher than unskilled wage rates and annual land rent respectively, but 50% of the farms perform below these rates. Market oriented farms have an economic performance that is similar to subsistence oriented farms. Off-farm income, however, is essential for large groups of small-scale farm households to achieve economic viability: without additional off-farm income, 54% of the farms in the sample are estimated to be below the poverty line. The replacement costs of mined nutrients amounts to 32% of the average net farm income. At crop level the cash crops tea and coffee realise higher gross margins and considerably lower nutrient mining levels than the major food crops maize and maize-beans. It is concluded that a multi-disciplinary monitoring activity at farm level, contributes to targeting and prioritization of development options aimed at optimization of soil nutrient management.

The Influence of the Rate of Growth of Labour Productivity on Australian Farm Output and Net Farm Incomes

Results are presented for three scenarios, analysing the effects of growth in labour productivity on Australian farm output and net farm income between 1970-71 and 1980-81. These show 2.0 and 5.0 per cent per annum increases in labour productivity to be reflected as 0.61 and 1.16 per cent per annum increases in total factor productivity, respectively, as compared to the zero change. Estimated production of major commodities and average net farm income are presented on a national basis and by farm income groups. Net farm incomes are further disaggregated by State, region and farm type.