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An Economic Analysis of Homestead Farming in Some Selected Areas of Mymensingh District

M. R. U. Mian
Professor
Department of Agricultural Economics, BAU, Mymensingh.

K. Mazher
MS Student
Department of Agricultural Finance, BAU, Mymensingh.

M. S. Islam
Lecturer
Department of Agricultural Finance, BAU, Mymensingh.

Abstract/ Executive Summary:

Data were collected from 60 farm households to determine the profitability of different homestead enterprises through evaluating their costs and returns according to their farm size. And also examined the disposable pattern of homestead products and gender role in homestead farming. In this study vegetables, livestock and poultry enterprises were found most profitable in medium farms while the fish production was the most profitable in large farms. Taking all enterprises together medium farms obtained the highest profit followed by large and small farms. There were positive relationship between women labor participation and profitability of homestead farming. A similar relationship was also found between disposition of homestead products for consumption and size of farms. It was also found that homestead farming suffered from various problems and constraints like lower price of homestead products, lack of treatment of animals/birds, shortage of fertilizers, shortage of capital etc.

Keywords: Homestead farming, Profitabiltty, Gross margin, Disposable patterns, Women participation, Problems

Location: Kazirshimla, Dulalbari and Dewanibari under Boilor union of Trisha thana

Start Date: 00-06-1995

End Date: 00-05-1996

Program Area: Socio-economic and Policy

Non-commodity: Profitability, Analysis and interpretations

Objectives:

i) To determine the profitability of homestead enterprises,

ii) To examine the disposable pattern of homestead products,

iii) To assess the gender role in homestead farming practices,

iv) To identify the problems of homestead farming and

v) To suggest policy guideline on the basis of the research findings.

Methodology:

Farm survey method was used in this study considering the limitation of time, money and personnel. Data were collected relating to homestead activities e.g. vegetables, livestock, poultry and fish production from three adjacent villages namely Kazirshimla, Dulalbari and Dewanibari under Boilor union of Trisha thana. Purposive sampling technique was followed to select sample households. In total 60 farm households, i.e., 20 from each of small farm (0.21-0.80 hectares), medium farm (0.81-1.62 hectares) and large farm (above 1.62 hectares) categories were. In each of 20 households, there were 10 from Kazirshimla, 5 from Dulalbari and 5 from Dewanibari village. Data were collected in face to face interview method by using pre-tested survey schedule for the period of June, 1995 to May, 1996. Tabular technique was followed for analyzing the data to arrive at meaningful conclusions. It was necessary to evaluate all cost items regarding homestead enterprises. Farmers used both home supplied and purchased inputs to perform their homestead farming activities. In calculating the cost of family labor, the principle of opportunity cost was followed which is defined as the income and capable of earning in an alternative employment in or out side the farm. In this case, at first, actual days were taken into account devoted by different categories of workers. The children and female man days were converted into adult man days by considering the following formula: 2 children man-days = 1.5 female man-days = 1 adult man-day. Moreover, 8 adult male hours were equivalent to 1 man-day. To estimate the wage rate the daily wage rate was taken as the opportunity cost of labor. In case of calculation of housing cost, depreciation was considered which was estimated by using the following formula Depreciation = (Opening cost - present cost) / Operating years. The residual cost items and return items (products and by products) were evaluated on the basis of current market price prevailing in the period of enterprises cultivation. Since the homestead area of the sample farmers was very small, fixed cost was not considered and only variable cost was estimated and analysis was done on per farm basis. After deducting total variable cost from total return gross margin was calculated which indicated the profitability of different enterprises.

Source of Information: Bangladesh J. Train. and Dev., Vol. 11 No.1 & 2, 1998 : 123-130, ISSN: 1013-0306.

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

On the basis of the findings of present study it can be concluded that homestead enterprises were profitable in the study area irrespective of farm size groups. Gross margin was found the highest in medium farms for vegetables production and livestock and poultry enterprises while it was found the highest in large farms for pond fish culture. Taking all enterprises into consideration medium farms obtained higher gross margin than large and small farms. This study also showed that tendency of disposing homestead products for consumption have increased and that of sale products have decreased with the increase in farm size. Regarding women employment; there was a positive relationship between women labor participation and profitability of homestead enterprises. It was also observed that homestead enterprises were suffering from various problems and constraints in the study area. If these problems were solved homestead farming would be more profitable.

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