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Farm Business Analysis Under Alternative Farming Systems in a Selected Area of Bangladesh

Rezaul Karim Talukder Rokeya Begum
Associate Professor, Dept. of Agril. Economics. BAU, Mymensingh and a Lecturer. Patuakhali Krishi College.

Rokeya Begum
Associate Professor, Dept. of Agril. Economics. BAU, Mymensingh and a Lecturer. Patuakhali Krishi College.

Abstract/ Executive Summary:

Relative performance of alternative farming systems was studied by applying residual income measures such as gross margin, net farm income and management income. The results showed that gross margin per Taka of variable cost varied sufficiently among enterprises within each farming system. Among the individual enterprises within the crop component, vegetabale and fruits gave highest gross margin per Taka of variable cost in all the systems of farming. Among the components of the whole farm business, fish component had the highest gross margin per Taka of variable cost in all the systems of farming. Net farm income was reasonably high for all the systems. Except for the Crop-Cattle-PouItryFish system, all the systems earned negative management income. However, return to operator's labour and management was positive for all the systems. In view of the fact that many of the farm fixed resources have lower opportunity costs, it may be plausible to assume that farmers might be content with whatever positive return they earn over their composite input "labour and management

Keywords: Farm business,Farming systems

Location: FSRDP team in the Kazir Shimla area. Mymensingh

Start Date:

End Date:

Program Area: Farming System

Non-commodity: Social status

Objectives:

To analyze the whole farm business, considering farms to be operating in the framework of farming system in a selected area of Bangladesh.

Methodology:

Data were collected from the farm households falling in the selected farming systems. As many as 27 farming systems were identified by the FSRDP team in the Kazir Shimla area. A two stage sampling procedure was adopted in the study. In the first stage, four dominant systems were selected. These were Crop-Cattle-Goat-Poultry-Fish (C-C-G-P-F), Crop-CattlePoultry-Fish (C-C-PF), Crop-Cattle-Poultry (C-GP) and Crop-Poultry-Fish (C-P-F) systems.

Source of Information: Bangladesh J. Agric. Econs. XVI, 1(June 1993): 59-75

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The results showed that gross margin per Taka of variable cost varied sufficiently among enterprises within each farming system. Among the individual enterprises within the crop component, vegetabale and fruits gave highest gross margin per Taka of variable cost in all the systems of farming. Among the components of the whole farm business, fish component had the highest gross margin per Taka of variable cost in all the systems of farming. Net farm income was reasonably high for all the systems. Except for the Crop-Cattle-PouItryFish system, all the systems earned negative management income. However, return to operator's labour and management was positive for all the systems. In view of the fact that many of the farm fixed resources have lower opportunity costs, it may be plausible to assume that farmers might be content with whatever positive return they earn over their composite input "labour and management.

Knowledge Management: Journal