Net Farm Income Research Articles

ECONOMIC ANALYSIS OF YAM FLOUR PROCESSING IN SAKI, OYO STATE, NIGERIA

The study examined the economics of yam flour processing in Saki, Oyo State, Nigeria. Primary data were obtained using questionnaire. A multistage sampling procedure was used in selecting one hundred and twenty (120) yam processors. Data were analysed using descriptive statistics, budgetary analysis and multiple regressions. Results revealed that 86.5% of yam flour processors were female, 71.2% were married, and 41.4% had primary education. In addition, mean age, household size and production experience of the processors of yam flour were 40 years, 6 persons and 15 years respectively. The gross margin and net farm income were N146,770.03 and N141,536.79 per processing cycle, while the return on investment was 3.25 for every N1 invested which implies that yam flour processing is profitable. Multiple regression revealed that the coefficient of labour cost, transportation cost, cost of storage and packaging and distance to market were negatively significant at 5%, 1%, 1%, and 1% probability level. Also, year of processing experience and membership of association were positively significant at 1% and 5% probability level respectively. The main constraints facing processors of yam flour in the study area were inadequate storage facilities, lack of infrastructural facilities and problem associated with climate change. It is therefore recommended that policies that would enhance large processing capacity so that at the long-run, output and profit can be maximized.
 

Economics of pineapple production in Awgu Local Government Area of Enugu State, Nigeria

The study analyzed the economics of pineapple production in Awgu Local Government Area (LGA) of Enugu State, Nigeria. Data for the study were collected from 50 respondents from Amoli and Ihe communities of the LGA through a simple random sampling technique. The communities were purposively selected because they contain higher concentration of pineapple farmers. Primary data were collected using interview schedule administered to the respondents. Data were realized with descriptive statistics, enterprise budgeting techniques and multiple regression analysis. The study revealed that (36%) of the farmers had farming experience of 1 to 10 years’ experience in pineapple production, indicating that new farmers entered the crop’s production sector within the last decade. The enterprise proved profitable with farmers’ net return on investment value of 1.7. Farm size, cost of input, level of education and household size significantly determined net farm income. It was further revealed that poor access road and high transportation cost were the main constraints of the pineapple producers. The study concluded that profitable production opportunities exist on the crop. The study recommends that extension agencies should encourage more new farmers to exploit pineapple production potentials while encouraging its existing farmers to scale up production through farm size increment, reinvestment of their gains and production knowledge increase.

Rural infrastructure and production efficiency of food crop farmers: Implication for rural development in Nigeria

This study investigated the impact of rural infrastructure on production efficiency of food crop rural farmers in Ogun State, Nigeria. A total of 160 farming households from 20 communities in Abeokuta and Ilaro in Ogun State Agricultural Development Programme (OGADEP) were randomly selected. Descriptive statistics, budgeting, Infrastructure Index Estimation (IIE) and Stochastic Production Frontier (SPF) were used to analyze the collected data. Results revealed that rural dwellers’ major economic and livelihood activities were farming (51.9%), trading (26.3%) and food processing (19.4%). The budgeting analysis showed that food crop production was more profitable in developed areas than in less-developed areas with Net Farm Income (NFI) of $328.900 (₦119,402.90/hectare) and $179.496 (₦65,163.68/hectare), respectively. SPF showed that total land cultivated (p<0.05), family labour (p<0.01), hired labour (p<0.05) as well as cost of planting inputs (p<0.01) significantly influenced food crop output. It was concluded that farm size, labour and cost of planting materials were the major factors affecting food crop output, irrespective of the presence of infrastructural facilities or not in the study area. The research recommends that all-inclusive rural infrastructural development policies should be formulated towards efficient food crop production in Nigeria.

Milk Income over Feed Cost Margin, Margin Protection Program, and Farm Finances for a Sample of Wisconsin Dairies in 2000–2017

AbstractThe relationship between farm‐level milk income over feed cost (IOFC) margin and national margin, profit risk, and terminal stress risk are investigated using data on Wisconsin dairy farms over the period 2000–2017. Results show that farm‐specific IOFC margins were not highly correlated with the national margin, higher farm IOFC margin increased profit level and volatility but decreased downside risk, and farm terminal stress appears unaffected by either the margin or the related payments. These findings suggest that, for sample farms, a policy that targets IOFC margin might reduce downside risk of net farm income.

Costs and Returns Analysis of Maize Production in Lere Local Government Area of Kaduna State, Nigeria

This study was carried out to estimate costs and returns associated with maize production in Lere local government area of Kaduna state. Data were collected from a sample of 100 maize farmers selected through multi-stage sampling procedure using questionnaire and data collected were analyzed using simple descriptive statistics and net farm income analysis. The result showed that 82% were in their working age of between 21-50 years, majority of the farmers 53% were married, 91% had formal education, in terms of farming experience, majority (68%) of the respondent had farming experience that is above one year. The result revealed that maize farming is profitable investment in the study area with a total return of N 194,545.00 and net farm income of N 81,275.00 per hectare with a benefit cost ratio of 1.72 and a return on capital invested of 0.42. All the farmers identified maize as an important source of food to households in the study area. However maize farming is facing several constraints such as lack of capital (73%), high cost of farm inputs (69%), lack of credit facilities (67%), inadequate storage facilities (53%), inadequate processing facilities (50%), incidence of pests and diseases infestation (46%), poor road network (40%) and poor extension services (33%). Therefore, it is recommended that credit facilities should be provided so that farmers can have fund to purchase farm inputs such as fertilizer, pesticides and insecticides and be able to employ adequate labour, storage and processing facilities such as silo and shelling machine should be made available to farmers at subsidized and affordable price as a form of government intervention, adequate workshops and seminars especially on training farmers on methods of weed and pests control should be organized by extension agents and farmers should be encouraged to form themselves into cooperative groups so that they can pool their resources together in getting adequate funds to finance maize production activities.

Güney Nijerya’da ki Batı Afrika Cüce (WAD) Keçi Üreticilerinin Verimliliğini ve Gelirini Artırmak için Akıllı Stratejilerin Benimsenmesi

Objective: In this study the adoption of SMART (specific, measurable, realistic and timebound) strategies for enhancing productivity and income of West African Dwarf (WAD) goat farmers was investigated in Southern Nigeria.Materials and Methods: In April, 2019, structured questionnaire and observation were instrumental to the collection of primary data from 94 WAD goat farmers that were purposively selected using snowball sampling technique. Descriptive and inferential statistical tools were employed in data analysis.Results: The result of study shows that their productivity enhancement adoption index is 50%. The study revealed that about 52% of the total variation in value of WAD goat is accounted for by breed of initial stock, number of kids per doe, number of matured goat consumed, and age of kidding. Further result shows that SMART strategies adopted such as extension training received, breed of initial stock, number of goat stocked, extension agent and production infrastructures used, have a positive and significant relationship with the productivity. It was revealed that the mean net farm income of non-adopters of SMART strategies was N10,552 per goat and a net farm income of adopters was N15,184 per goat. Test of hypothesis indicated that there is significant difference in the income of goat farmers that did not adopt SMART strategies and goat farmers that adopted SMART strategies in WAD goat production. The result also showed that the major constraints to the adoption of SMART strategies by WAD goat farmers were inadequate genetically improved breed for cross breeding, inadequate capital and poor management system.Conclusion: We concluded that adopting the identified SMART strategies will significantly improve WAD farmers’ productivity and income. The provision of improved breeding stocks and improvement in management system will address the serious constraints faced by WAD goat farmers.

COMPARATIVE ANALYSIS OF TOTAL FACTOR PRODUCTIVITY AMONG POTATO (Solanum tuberasum) FARMERS IN BOKKOS LOCAL GOVERNMENT AREA OF PLATEAU STATE, NIGERIA

This study compared Total Factor Productivity among potato farmers in Bokkos Local Government Area of Plateau State, Nigeria. A multistage sampling technique was employed to select 96 male and 64 female respondents. Data was collected from primary source through the distribution of structured questionnaire and oral interview schedule. Data collected were analyzed using descriptive statistics, net farm income and total factor productivity (TFP) models. The findings revealed that the mean age of male and female household heads was 40 and 38 years respectively, the mean household size was 5 persons for male and 4 persons for female headed households, 82.3% and 73.5 of male and female respondents were married. The mean farming experience of male and female farmers was 19 and 15years, 62% and 66% of male and female respondents did not belong to any cooperative. Potato production was profitable with NFI per hectare of male and female respondents being N473,307.65 and N294,324.45 respectively. The BCR was 3.15 and 5.16 for male and female respondents. Profitability Index was 0.68 and 0.81 respectively for male and female farmers. The result of probit regression revealed that the coefficients of gender, household size, farming experience and amount of credit were significant. The study recommend that: implicit sensitization of the community leaders on the active role of women in agricultural development, Policy makers at all level of government should ensure discriminatory laws or customs against women are abolished, both male and female farmers should utilize more of their household members in

Cost and Returns Analysis of Groundnut Production in Qua’an Pan Local Government Area of Plateau State, Nigeria

This study assessed cost and returns analysis of groundnut production in Qua’an Pan Local Government Area of Plateau State, Nigeria. The specific objectives were to determine the socio economic characteristics of groundnut producers in the study area, estimate the cost and returns of groundnut production, determine the input and output relationship in groundnut production and identify the constraints faced by groundnut farmers in the study area. Multistage sampling technique was used in selecting 150 respondents for the study. Primary data were collected through the use of structured questionnaires and interview technique and were subjected to both descriptive and inferential statistics. The results obtained from the study revealed that the mean age of the respondents was 38 years with males dominating (82%) the groundnut production enterprise in the study area. Greater (85%) percentages of respondents were married with majority (64%) of them having primary school education. The respondents had an average household size of nine (9) persons, a mean farming experience of 9.3 years and an average farm size of 3.0 hectares. The result also revealed that majority (72%) of the respondents did not belong to any cooperative/ farming association. The result indicates that majority (79%) of the groundnut farmers acquired their farmland by inheritance. Groundnut production in the study area is profitable. The average output obtained per hectare was 696 kg at the prevailing selling price of ₦280/kg. The total revenue (TR), gross margin (GM) and, net farm income (NFI) per hectare obtained were ₦194880, ₦139380 and ₦123730 respectively. The return on naira invested (RNI) by farmers in the study area was ₦1.70 indicating that for every one naira invested, ₦1.70 profit was gained. The result of the double log production function analysis shows that farm size, cost of fertilizer and cost of labour were statistically significant and influenced the profitability of groundnut production. Major constraints to groundnut production in the study area include; high cost of inputs (64 %), high cost of labour (49 %), lack of organized market system (47%), land tenure (42%) among others. The study recommends that groundnut stakeholders and research institutes should work more on introducing new improved groundnut varieties. Government should subsidize groundnut inputs like recommended fertilizer and herbicides so as to motivate farmers to grow groundnut. Government should establish organized marketing systems where farmers will have proper and reliable linkages with buyers thereby reducing the undue exploitative tendencies of the middlemen. Improved storage facilities should be provided so that farmers could store their produce to avoid spoilage and for sale during times of scarcity.

Analysis of the impacts of socioeconomic factors on hiring an external labor force in tilapia farming in Southern Togo

This study analyzed the financial profitability and the impacts of socioeconomic factors on hiring an external labor force in tilapia farming in Southern Togo. We obtained the primary data from 75 randomly selected tilapia farmers for socioeconomic analysis by a structured questionnaire. Logit regression and return on investment (ROI) were performed to analyze the influence of socioeconomic factors on the decision of tilapia farmers to hire an external labor force and financial profitability of tilapia farming in the study area, respectively. The results indicate that tilapia farming contributes to employment opportunities in the study area. However, the key variables such as economic diversification, farming experience and educational attainment significantly affect the farmers’ decision to hire an external labor force in their farms. Furthermore, tilapia farming is a profitable activity based on the positive mean gross margin and mean net farm income. The ROI was 0.31, which implies that a return of USD 0.31 was obtained for the investment of every single dollar. The government must pay more attention by organizing training or re-training workshops for tilapia farmers, which would improve their socio-economic status.

IMPACT OF ADAPTATION TO CLIMATE CHANGE ON NET RETURNS IN SMALLHOLDER PIGEON PEA PRODUCTION SYSTEMS IN SEMI-ARID KENYA

Purpose: Improved pigeon pea varieties were promoted in semi-arid areas of Kenya to improve smallholder pigeon pea production systems resilience to climate change. However, the impact of adoption is unknown. This study was carried out to evaluate the impact of adoption on farming households’ net farm returns in semi-arid South Eastern Kenya in the context of adaptation to climate change. The objectives were to (i)describe farmer’s perceptions on production of improved varieties of pigeon peas as an adaptation strategy to climate change, (ii) evaluate the impact of the adoption on household’s net returns. Propensity score matching approach was used to assess the impact of the adoption.&#x0D; Methodology: The study used cross sectional data gathered through household survey to evaluate the impact of adoption on farming households’ net farm returns in semi-arid South Eastern Kenya in the context of adaptation to climate change.. The study was conducted in semi-arid zones of Machakos County in South Eastern Kenya (SEK) namely Masinga, Mavoko and Mwala Wards. The areas were purposively selected for semi-arid semi-arid climatic conditions and dominant pigeon pea production.The study adopts the counterfactual approach and propensity score matching method to evaluate the impact of adopting improved pigeon peas on household net farm income. Data was analyzed using STATA 13.0 statistical package.&#x0D; Findings: The results showed that 33 percent of the sampled households had adopted production of improved pigeon peas and they perceived adoption of the technology as an adaptation strategy to climate change viewed through tolerance to drought, pest and diseases, increased crop yield and shortened crop growth period. Improved pigeon peas significantly increased farmers’ net income, the adopter got a net farm income of KES 30,710 per acre per year that was KES 18, 631 more than non-adopting households.&#x0D; Unique contribution to theory, practice and policy: The study recommends that County Governments facilitate farmers to produce pigeon pea seeds through improved access to seed and linkage to reliable market for their farm produce to increase their farm income.

Relationships between agricultural energy and farming indicators

Cutting costs in farms is the main concern for several stakeholders, specifically for farmers. Reducing energy costs allows for, at the very least, two relevant outcomes, one concerning increases in the net farm income and the other relating to the environment and the promotion of more sustainable farming and rural development. In turn, the agricultural sector may itself be a relevant source of renewable and clean energies. Considering these motivations, this research/study has intended to explore the concept of agricultural energy, highlighting the main insights from literature, and to stress the relationships between this concept and relevant farming indicators. The findings obtained may provide interesting support for the several related stakeholders, namely, policymakers, farmers and researchers. To achieve these objectives, literature available on scientific platforms was explored and statistical relationships were established, through econometric approaches (allowing for spatial effects), between structural characteristics from farms in the European Union. The findings reveal that the several instruments within the Common Agricultural Policy (CAP) should further address the relationships between financial support and sustainability. For example, it could be interesting to index the direct payments from the 1st CAP Pillar with farm indicators that consider dimensions related with the efficiency and savings in costs. In the current context, it is possible to increase the output and area with energy cost growths of 0.423 and 0.375% points, respectively, and increase the total crops output/ha growth and the utilised agricultural area with energy costs/ha growth of 0.243 and −0.225% points, respectively.

Economic implication of contract farming on small-scale rice farmers in Kwara State, Nigeria

This study examines the implication of contract farming on Olam Out-growers farming scheme in Kwara State, Nigeria. The objectives of the study are to determine the costs and returns to production of rice, assess the productivity level of rice, evaluate the technical efficiency of rice farm and identify the determinants of the technical inefficiency of the rice farms in contract farming. In this study, the average net farm income of the rice farmers under the scheme was N191,862.56 and the land productivity level was 2,006.04kg/ha. The technical efficiency of the rice farm was estimated using Cobb-Douglas Stochastic Frontier Production function which shows that likelihood coefficients for quality of seeds, hired labour and farm size were statistically significant at 1% level. Likewise, the determinants of technical efficiency among the farmers were household size and farming experience. The results further show that the contract farming scheme has a positive impact on the lives of rice farmers. Therefore, there is a need for partnership with private contract farming outfits in order to improve the current level of access to inputs by rice farmers.&#x0D; Keywords: Contract farming, Out-growers rice farmers, Technical efficiency, Farm income

Pastoral Farming in the Ili Delta, Kazakhstan, under Decreasing Water Inflow: An Economic Assessment

River deltas provide the most productive pastures in Central Asia. Simultaneously they are highly vulnerable to water inflow changes. The aim of this study was to conduct an economic assessment of the short- and medium-term effect of reduced water inflow on farmers’ performance within the Ili Delta. Primary data were collected through 35 interviews with farmers and additional experts in 2015. Production parameters for three types of individual farms were estimated and entered into a full cost accounting. Contribution margins were calculated for three scenarios: (I) sufficient water inflow (normal situation), (II) decreasing water inflow, and (III) significantly reduced water inflow (worst case). Farmers purchase hay to adapt to pasture production loss due to decreasing water inflow. This more than doubled the variable costs of worst case in comparison to normal situation for small-, medium-, and large-scale type of individual farm. Monte Carlo simulation indicates a risk of 74% (small-scale farm) and 3% (medium-scale farm) that already variable costs will exceed revenues. Despite their high fixed costs, only large-scale individual farms generate positive net farm income from operations in the worst case due to government payments from participation in elite bull program that account for one-third of total revenue.

ADOPTION AND IMPACT OF IMPROVED PIGEON PEAS ON FARMING HOUSEHOLD POVERTY IN SEMI-ARID SOUTH EAST KENYA

Purpose: The purpose of the study was to assess the factors influencing adoption of improved pigeon peas in semi-arid South Eastern Kenya and to evaluate the impact of adoption on households’ poverty.&#x0D; Methodology: The study used cross sectional data gathered through household survey to establish the factors influencing improved pigeon pea adoption. Propensity score matching approach was further used to assess the impact of adoption on households’ poverty.&#x0D; Findings: The results show that farmers’ access to improved pigeon pea seed, contact with agricultural extension service providers and access to market information significantly influenced adoption (p&lt; 0.001). Adopters and non-adopters got an average net farm income of Kenya shillings (KES) 29,570 and 21, 490 per acre per year respectively. Adoption of improved pigeon peas resulted in a decrease of head count poverty by 0.24% and a reduction of poverty gap and poverty severity by 0.30% and 0.20 % respectively.&#x0D; Contribution to theory, practice and policy: The study recommends that both National and County Government make policies that create enabling environment for private sector participation in production of certified seed to improve farmers’ access to improved seed to augment production. Facilitating farmers’ improved access to reliable and timely market information will increase production of marketable surplus of the peas that are adaptable to semi-arid areas, increase fall income and contribute to reduction of rural poverty.

The contribution of social capital on rural livelihoods: Malawi and the Philippines cases

This paper explores the efficacy of a development model designed to enhance social capital where social capital is seen as a catalyst to increased economic opportunities. The study covers smallholder livestock producers in Malawi and the Philippines. The key question examined in this paper is whether communities that received this specific development intervention significantly increased their access to social capital over time and whether this social capital is positively correlated with net farm income and improved livelihoods. We draw data from two case studies: Heifer International’s Malawi Smallholder Dairy Development Project (MSDD1) and the Philippine Raising Income of Families through Sustainable Agri-Business Project (RICSA). The examination of these two cases increases our understanding of how implementation and contextual variables may influence changes in social capital and livelihoods. The study applies social network analysis (SNA) to understand the connection between asset-based/human capacity interventions and social capital. SNA provides a quantitative measure of networks and households’ position within those networks as indicators of social capital. Real net income which includes the value of home consumption is used as a proxy for ‘improved livelihoods.’ A quasi-experimental design is used to determine whether social capital and income variables change significantly over time and whether social capital is correlated with income. The results revealed significant differences across the two cases. In the Malawi case, the intervention significantly contributed to social capital formation. In the Philippine case study, the social capital did not demonstrate a significant difference. The dissimilarity between the two cases shows that it takes time to deepen bonds of trust and reciprocity and to extend networks as conduits of knowledge, information and economic opportunity.

Income Levels and Farm Economic Viability in Italian Farms: An Analysis of FADN Data

In the European Union legislative proposals for the next Common Agricultural Policy (CAP) the income support remains an essential part of the CAP. This paper analyses agricultural income levels, the role of EU aids in ensuring fair levels of income and how different socio-economic and structural characteristics affect farms’ economic viability. Italian Farm Accountancy Data Network (FADN) data have been processed and economic viability has been assessed by comparing Farm Net Income to a reference income and by estimating a profitability index to check whether the agricultural activities remunerate factors owned by the farmer and his/her family. After an explorative analysis, two multinomial logit models have been estimated to evaluate how structural and socio-economic characteristics affect the likelihood of a farm to be viable with and without EU aids. Both structural farm characteristics and farmer’s production strategies explain the likelihood of a farm to be viable in the short and in the medium-long term. Farms are more likely to be viable as the size increases and the higher the capital intensity, while viability likelihood decreases with the farmer’s age, when the holder is a woman, and the farm is localized in Southern Italy. CAP payments do not modify the factors that affect farm viability but can change their weight.

Cost Benefit Analyses in Managing Late Blight Through Trichoderma asperellum Seed Treatment and Ridomil® Application on Potato

Fungicides overuse in management of late blight has led to increased cost of production and biodiversity issues. To better understand costs and benefits associated with seed treatment to reduce fungicide application, apical cutting and tuber seed crop were pre-treated by either peridermal injection or dipping using T. asperellum suspension at 33%, 66% and 100% concentration and then sprayed separately with Ridomil&amp;reg; (Metalaxyl 4% + Mancozeb 64%) at 21, 14 and 7 (Manufacturer&amp;rsquo;s Recommended Regime) days interval. Results showed that apical cuttings had 7.5% higher disease severity and 0.2% lower yield than crop from seed tuber. Untreated and 33% T. asperellum were not significant different (p = 0.05) in disease and yield scores. T. asperellum concentration at 66% and 100% reduced disease severity by 26% and 27% resulting to 30% and 29% yield increment respectively. Spray interval of 14 days did not differ significantly from 7 day spray interval in terms of disease score and yield but the regime MRR% was double 7 day spray interval. Maximum yield loss was observed in unprotected plots followed by treatments sprayed at 21 days interval. Combination of 66% and 100% T. asperellum concentration with 14 days interval resulted to higher yield and marginal rate of return compared to any other combination. Seed dipping was four times profitable than injection. The findings suggest that seed treatment at 66% and 100% T. asperellum concentration by dipping in combination with Ridomil&amp;reg; application at 14 days interval significantly reduced late blight epidemics and improved on yield and consequently increased net farm income.

Cost and Return Analysis of Sweet Corn in Chhindwara District of Madhya Pradesh

The present study was carried out with objective to estimate cost and returns of sweet corn under different size of sample farms in study area. The study is confined to Chhindwara district of M.P. as it is one of the major sweet corn producing districts of the state with its favourable agro-climatic factor for Sweet corn crop. A sample of 45 sweet corn farmers comprises 15 each small, medium, large farmers were selected by proportionate random sampling method from three villages, viz. Rohankala, Rohandhana, and Gauraiya. The required data were collected from selected respondents by survey method using pretested interview schedule, for estimation of cost of cultivation cost concept (Cost A1, A2, B1, B2, C1, C2 and C3) were used and profitability estimation, net farm income, family labour income, farm business income and B:C ratio were calculated. The primary data pertained to the agriculture year 2017-18. The cost of cultivation of sweet corn (Total cost C3) was `68734 per hectare, variable cost percentage was 59.98 percent and fixed cost was 40.01 percent. The major items of cost of cultivation were rental value of land (35.30 percent), seeds (21.73 percent), family human labour (11.92 percent) and hired human labour (11.48 percent). The per hectare average gross income was `145590 with B: C ratio 1:1.92 which showed profitability of crop. On the basis of finding of study, it is recommended that the study area is very potential for sweet corn crop and it is economically viable.

Cost and Return Analysis of Green Pea in Jabalpur District of Madhya Pradesh

The present study was based on an economic study of production and marketing of pea in the Jabalpur district of Madhya Pradesh in the agricultural year 2016-17. The primary data related to cost and return of green pea crop was collected from 60 green pea farmers of three villages of Jabalpur district under three sizes of groups, each group containing 20 farmers in each class. The required data were collected from selected respondents by survey method using the presented interview schedule, for estimation of cost of cultivation and profitability estimation, net farm income, gross income, and B:C ratio were calculated. The results showed that the total cost of cultivation of green pea was found to be `109749, 119949, and 130174 per ha for small, medium and large farmers, respectively. The average net income was `102342.10 and in the case of the small, medium and the large farmer was `106250.36, 104775.23, and 96000.56 respectively. The average gross income found to be `222300.00 per ha. It was estimated to be `216000, 224725 and 22617 in the case of the small, medium and the large farmer was, respectively. The average benefit-cost ratio came out to be 1:1.85. On the basis of the finding of the study, it was recommended that green pea cultivation was economically viable.

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

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.