M. Taj-Uddin
Assistant Professor in the Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh
R. K. Talukder
Professor in the Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh
Business Analysis, Farm Households Practicing, Crop-Cattle-Poultry-Fish Farming Systems, Bangladesh
The two villages-Kazirshimla and Kanhor of Mymensingh district
Socio-economic and Policy
Data for the study were collected through a farm survey from a sample of 40 farms practicing the Crop-Cattle-Poultry-Fish farming system in the two villages-Kazirshimla and Kanhor of Mymensingh district. The sample frame for the selection of the sample was obtained from the FSES project office. Data were collected for one year of operation of farms beginning from July 1993 to June 1994. This period covered three rice crop seasons namely Boro, Aus and Aman, and a truncated picture of other farm enterprises falling within this period. Data for the sample of 40 farms were summarized, tabulated and analyzed in accordance with the objectives set for study.
Specification and Derivation of Income Measures The relative performance of individual enterprises and success of the whole farm business was examined in terms of the following income concepts:
Gross Output: Gross output was calculated by multiplying the total volume of production of an enterprise by the farm-gate price. For crop enterprise, it consisted of the values of main and by-products. For cattle, poultry and fish, gross output consisted of the values of main and by-products. For cattle, poultry and fish, gross output consisted of the values of main, by-products and net change in inventory. Net change in inventory was defined as: (closing stock + sold + consumed)-(opening stock + purchased). In the case of crop enterprise, little stock carry-over was observed and as such, no 'change in inventory' was accounted for in computing gross output.
Gross Margin: Gross margin was derived by subtracting variable cost from the gross output. For the purpose of this study, the opportunity cost of family labour other than that of the operator was considered as a variable cost and as such was deducted from the gross output to arrive at the gross margin. The sum of the gross margin of the individual enterprises represented the gross margin for the whole farm business. For crop enterprises, gross margins were calculated per hectare of the crop enterprises in addition to gross margin for the total hectarage of crops. For all enterprises, gross margins were calculated per Taka of variable cost in order to make them amenable to mutual comparison.
Net Farm Income: Net farm income, which represented a return to the farm operator for the contribution of labour, capital and management, was calculated by subtracting the selected fixed cost items such as cost of land use, payment for the annually hired labour and depreciation of farm buildings and equipment from sum of the gross margin for the whole farm business.
Operator's Labour and Management Income: Operator's labour and management income was derived as the difference between the value of net farm income and the opportunity cost of family operating capital. Thus operator's labour and management income = net farm income-opportunity cost of family operating capital.
Management Income: Management income represented the final residual income and was calculated by subtracting the opportunity cost of operator's labour from operator's labour and management income.
Bangladesh J. Agric. Econs. XX, 1(1997) : 97-105
Journal