RajlMohinilDevilCollageloflAgriculturelandlResearchlStationl(RMDlCARS),lAmbikapur
INDIRA GANDHI KRISHI VISHWAVIDYALAYA
l l l
RAJlMOHINIlDEVIlCOLLAGElOFlAGRICULTURElANDlRESEARCHlSTATIONl(R
MDlCARS),lAMBIKAPUR,lSURGUJA,lCHHATTISGARH
LECTURElNOTESlOFlCOUR
SElCODE:lAECl–l5121
COURSElTITLE:
FARMlMANAGEMENT,lPRODUCTIONl&lRESOURCElECONOMICS
PREPAREDlBY:
DR.lSUNILlKUMARlSINGH,lASS
ISTANTlPROFESSOR,lAGRICU
LTURALlECONOMICS
1l|lPl al gl e
,RajlMohinilDevilCollageloflAgriculturelandlResearchlStationl(RMDlCARS),lAmbikapur
➢ MEANINGl ANDl CONCEPTl OFl FARMl MANAGEMENT,l OBJECTIVESl ANDl RE
LATIONSHIPlWITHlOTHERlSCIENCES:
FarmlManagement:lMeaning
Farmlmanagementlislconcernedlwithlresourcelallocation.lOnlonelhand,lalfarmerlhaslalsetloflfarmlresou
rceslsuchlaslland,llabour,lfarmlbuildings,lworkinglcapital,lfarmlequipments,letc.lthatlarelrelativelylsca
rce.lOnlthelotherlhand,lthelfarmerlhaslalsetloflgoalslorlobjectivesltolachievelmaylbelmaximumlfamilylsa
tisfactionlthroughlincreasinglnetlfarmlincomelandlemploymentlgeneration.lInlbetweenltheseltwolends,
lthelfarmerlhimselflislwithlalspecificldegreeloflabilitylandlawareness.lThislgaplislbridgedlbyltakinglalseri
esloflrationalldecisionslinlrespectloflfarmlresourceslhavinglalternativeluseslandlopportunities.
Thelneedlforlmanaginglanlindividuallfarmlarisesldueltolthelfollowinglreasons:
i) Farmersl havel thel twinl objectives,l viz.,l maximizationl ofl farml profitl andl improvementl oflstan
dardlofllivinglofltheirlfamilies.
ii) Thelmeansl availablel tol achievel thel objectives,li.e.,l thel factorsl oflproduction,l arel scarcelinlsuppl
y.
iii) Thel farml profitl isl influencedl byl biological,l technological,l social,l economic,l politicall andlinst
itutionallfactors.
iv) Thelresourceslorlfactorsloflproductionlcanlbelputltolalternativeluses.
DEFINITIONS:
Theldefinitionsloflfarmlmanagementlgivenlbylvariouslauthorslarelgivenlbelow.
J.N.lEffersonldefinedlfarmlmanagementlaslthelsciencelthatldealslwithlorganizationlandloperationloflth
elfarmlinlthelcontextloflefficiencylandlcontinuouslprofits.
G.F.lWarrenldefinedlfarmlmanagementlaslthelscienceloflorganizationlanlthelmanagementloflfarmlenterpriseslf
orlthelpurposeloflsecuringlgreatestlcontinuouslprofits.
AccordingltolLlC.lGray,lfarmlmanagementlislthelartloflmanaginglalfarmlsuccessfullylaslmeasuredlbylth
eltestloflprofitability.
AndrewlBossldefinedlfarmlmanagementlaslthelartloflapplyinglbusinesslandlscientificlprinciplesltolth
elorganizationlandloperationloflthelfarm.
Farmlmanagementlisltheldecisionlmakinglprocesslwherebyllimitedlresourceslarelallocatedltolalnumbe
rloflproductionlalternativesltolorganizelandloperatelthelbusinesslinlsuchlalwayltolattainlsomelobjective
sl(R.D.lKay).
AccordingltolBradfordlandlJohnson,lfarmlmanagementlislalbranchloflagriculturalleconomics,lwhic
hldealslwithlwealthlearninglandlwealthlspendinglactivitiesloflfarmerlinlrelationltolorganizationlandlop
erationloflthelindividuallfarmlunitlforlsecuringlthelmaximumlpossiblelnetlincome.
2l|lPl al gl e
,RajlMohinilDevilCollageloflAgriculturelandlResearchlStationl(RMDlCARS),lAmbikapur
AccordingltolHeadylandlJensen,lfarmlmanagement,laslthelsubldivisionlofleconomics,lwhichlconsid
erslthelallocationlofllimitedlresourceslwithinlthelindividuallfarm,lislalscienceloflchoicelandldecision-
making;landlthuslalfieldlrequiringlstudiedljudgment.
OBJECTIVES:
1. Tolexaminelthelproductionlpatternlandlresourceluselonlthelfarm.
2. Tolidentifylthelfactorslresponsiblelforlthelpresentlproductionlpatternlandlresourceluselonlthelfarm.
3. Toldeterminelthelconditionsl ofloptimalitylinlthelresourceluselandlproductionlpatternlonlthel farm.
4. Tolanalyzelthelextentloflsub-optimalitylinlthelresourceluselonlthelfarm,land
5. Tolsuggestlwayslandlmeanslinlgettinglthelpresentluseloflresourcesltoloptimalitylonlthelfarm.
RELATIONSHIPlWITHlOTHERlSCIENCES:
Farmlmanagementlintegrateslinformationlfromlvariousldisciplineslviz.,lagronomy,lanimallhusbandr
y,lsoillscience,lhorticulture,lplantlbreeding,lentomology,lgeneralleconomics,lsociology,lpsychology,l
etc.,linlitslapplicationltolthelfarm.lThelrelationshiplislexplainedlbelow.
Biologicallscience:lBiologicallscienceslprovidelinformationlonlinput-
outputlrelationshipslforlvariouslenterprises,lwhichlfacilitateslchoicelforlthelenterprise.lFarmlmanagerl
needslsuchlinformationlinltheldecisionlrelatedltolproductionlefficiency.lUnderlthis,lagronomylprovid
eslthelinformationlonlphysicallinputl–
loutputlrelationshipslinlcroplproduction.lSimilarly,lanimallhusbandrylgiveslinformationlonlthelphysic
allrelationshiplbetweenlfeedlingredientlandlbodyweightlofllivestock.lAgriculturallengineeringlexplain
slthelefficiencyloflvariouslimplementslandlmachinerylinlperforminglvariouslfarmloperations.
EconomiclTheory:lFarmlmanagementlinlfactlislalspecializedlbranchloflwiderlfieldlofleconomicslandli
tldrawsltheltoolslandltechniqueslfromleconomicsltheory.lThellawloflvariablelproportions,llawloflsubstit
ution,letc.,lwhichlarelusedlinlthelfarmlmanagementlanalysislareltheltoolslofleconomicltheory.
Supportinglsciences:lStatisticslprovidelthelbaselforlthelfarmlmanagementlspecialistltolprovidelmeth
odologylinlthelcollectionlandlanalysislofldatalpertainingltolthelspecificlfarmlproblems.
SociallSciences:lAttitudeloflthelfarmersltowardldecision-
makinglonlthelfarmlreflectltheirlpsychology.lSomelfarmerslarelrisks-
takerlinlfarming,lwhilelsomelarelaverseltolrisk.lItlislthelmentallmake-
uploflanlindividuallfarmerltoltakelriskyldecisionlorlnot.lCertainltimes,lphilosophylandlreligionlinfluen
celtheldecisionsloflthelfarmlmanagement,lparticularlylinlthelselectionlofllivestocklenterprises.lReligio
uslfeelingslstandlinlthelwayloflchoosinglalparticularllivestocklenterprise,lthoughlitlislprofitableltolthelf
armers.
3l|lPl al gl e
, RajlMohinilDevilCollageloflAgriculturelandlResearchlStationl(RMDlCARS),lAmbikapur
Thelcultivationloflnarcoticslislquitelprofitablelpropositionltolthelfarmers.lButltheldecisionltoldolsolisllim
itedlbylsociologicallandlethicallconsiderations.lLookinglintolthelharmfulleffectltheselcause,lalsociolog
istlonlthelgroundloflsocialljusticelisllikelyltoldemandlforlreductionlinltheirlareas.lOnlthelethicallgroundsl
peoplelmayldemandlalbanlonlthelcultivationloflnarcoticsltotally.
➢ MEANING,lDEFINITIONlOFlFARMS,lITSlTYPESlANDlCHARACTERISTICS,lFACTO
RlDETERMININGlTYPESlANDlSIZElOFlFARMS,lPRINCIPLESlOFlFARMlMANAGE
MENT:lCONCEPTSlOFlPRODUCTIONlFUNCTIONlANDlITSlTYPE,lUSElOFlPRODUC
TIONlFUNCTIONlINlDECISION-MAKINGlONlFARM,lFACTOR-
lPRODUCT,lFACTOR-FACTORlANDlPRODUCT-
PRODUCTlRELATIONSHIP,lLAWlOFlEQUI-
MARGINAL/ORlPRINCIPLElOFlOPPORTUNITYlCOST,lLAWlOFlCOMPARATIVElA
DVANTAGE.
FARM:lFarmlmeanslalpiecelofllandlwherelcroplandllivestocklenterpriseslareltakenluplunderlalcommo
nlmanagementlandlhaslspecificlboundaries.lInlotherlwords,litlislalpieceloflland,lwherelcroplandllivestock
lenterpriseslareltakenlunderlsinglelmanagementlanlhaslspecificlboundaries.
TypesloflFarm:lFundamentally,ltherelarelfiveltypeloflfarms,lwhichlarelgivenlbelow:
1. Specializedlfarm:lItlislalfarmlwherelmorelthanl50lperlcentloflitslincomelislobtainedlfromlalsinglelen
terprise.lThislmeanslthatlamonglthelpossiblelcropslorllivestocklenterpriseltakenluplbylfarmer,lonelp
articularlcroplofllivestocklenterpriselcontributeslmorelthanl50lperlcentloflthelincome.
Examples:lpaddylfarm,lsugarcanelfarm,ltobaccolfarm,lpoultrylfarm,lsheeplfarm,lfishlfarm,l
etc.
2. Diversifiedlfarm:lInlthisltypeloflfarm,lalnumberloflenterpriseslarelgrownlonlthelfarmlatlthelsamelti
me.lTherelislnotlmuchlsignificancelforlalsinglelenterpriselunderlthislsituation.lNolsinglelenterpriselc
ontributeslaslhighlasl50lperlcentlofltotallincomeloflthelfarm.lItlislalsolknownlaslgenerallfarm.
3. Mixedlfarm:lItlislalfarmlwherelcroplproductionlandllivestocklproductionlarelcombinedltolsustainla
ndlsatisfylaslmanylneedsloflfarmerlaslpossible.lTherelarellimitslspecifiedlregardinglcontributionlofl
livestocklenterprisesl(poultry,lfisheries,letc,)ltoltheltotallincomelonlthelfarm.lTheselenterpriseslarels
upposedltolcontributelatlleastl10lperlcentloflgrosslincome.lHowever,lthislcontributionlshouldlnotlexc
eedl49lperlcent.lMixedlfarmlprovideslemploymentltolthelfarmerlandlhislfamilylthroughoutlthelyear.lI
tlfurtherlprovideslalsortloflstabilityltolthelfarm.
4. Drylfarm:lInlthisltypeloflfarm,lcropslarelgrownlentirelylunderlrainfedlconditions.lCultivationloflcr
opslinlthoselareaslwherelannuallrainfalllisllesslthanl750lmmlislknownlasldrylfarming.lCroplfailurelislt
helmostlcommonldueltolprolongedldrylspellslduringlthelcroplperiod.lMoisturelconservationlpractic
eslarelimportantlinltheselregions.
5. Ranching:lGrazinglofllivestocklonlpubliclpastureslislcalledlranching.lThesellandslarelnotlfitlforlcul
tivation.
4l|lPl al gl e
INDIRA GANDHI KRISHI VISHWAVIDYALAYA
l l l
RAJlMOHINIlDEVIlCOLLAGElOFlAGRICULTURElANDlRESEARCHlSTATIONl(R
MDlCARS),lAMBIKAPUR,lSURGUJA,lCHHATTISGARH
LECTURElNOTESlOFlCOUR
SElCODE:lAECl–l5121
COURSElTITLE:
FARMlMANAGEMENT,lPRODUCTIONl&lRESOURCElECONOMICS
PREPAREDlBY:
DR.lSUNILlKUMARlSINGH,lASS
ISTANTlPROFESSOR,lAGRICU
LTURALlECONOMICS
1l|lPl al gl e
,RajlMohinilDevilCollageloflAgriculturelandlResearchlStationl(RMDlCARS),lAmbikapur
➢ MEANINGl ANDl CONCEPTl OFl FARMl MANAGEMENT,l OBJECTIVESl ANDl RE
LATIONSHIPlWITHlOTHERlSCIENCES:
FarmlManagement:lMeaning
Farmlmanagementlislconcernedlwithlresourcelallocation.lOnlonelhand,lalfarmerlhaslalsetloflfarmlresou
rceslsuchlaslland,llabour,lfarmlbuildings,lworkinglcapital,lfarmlequipments,letc.lthatlarelrelativelylsca
rce.lOnlthelotherlhand,lthelfarmerlhaslalsetloflgoalslorlobjectivesltolachievelmaylbelmaximumlfamilylsa
tisfactionlthroughlincreasinglnetlfarmlincomelandlemploymentlgeneration.lInlbetweenltheseltwolends,
lthelfarmerlhimselflislwithlalspecificldegreeloflabilitylandlawareness.lThislgaplislbridgedlbyltakinglalseri
esloflrationalldecisionslinlrespectloflfarmlresourceslhavinglalternativeluseslandlopportunities.
Thelneedlforlmanaginglanlindividuallfarmlarisesldueltolthelfollowinglreasons:
i) Farmersl havel thel twinl objectives,l viz.,l maximizationl ofl farml profitl andl improvementl oflstan
dardlofllivinglofltheirlfamilies.
ii) Thelmeansl availablel tol achievel thel objectives,li.e.,l thel factorsl oflproduction,l arel scarcelinlsuppl
y.
iii) Thel farml profitl isl influencedl byl biological,l technological,l social,l economic,l politicall andlinst
itutionallfactors.
iv) Thelresourceslorlfactorsloflproductionlcanlbelputltolalternativeluses.
DEFINITIONS:
Theldefinitionsloflfarmlmanagementlgivenlbylvariouslauthorslarelgivenlbelow.
J.N.lEffersonldefinedlfarmlmanagementlaslthelsciencelthatldealslwithlorganizationlandloperationloflth
elfarmlinlthelcontextloflefficiencylandlcontinuouslprofits.
G.F.lWarrenldefinedlfarmlmanagementlaslthelscienceloflorganizationlanlthelmanagementloflfarmlenterpriseslf
orlthelpurposeloflsecuringlgreatestlcontinuouslprofits.
AccordingltolLlC.lGray,lfarmlmanagementlislthelartloflmanaginglalfarmlsuccessfullylaslmeasuredlbylth
eltestloflprofitability.
AndrewlBossldefinedlfarmlmanagementlaslthelartloflapplyinglbusinesslandlscientificlprinciplesltolth
elorganizationlandloperationloflthelfarm.
Farmlmanagementlisltheldecisionlmakinglprocesslwherebyllimitedlresourceslarelallocatedltolalnumbe
rloflproductionlalternativesltolorganizelandloperatelthelbusinesslinlsuchlalwayltolattainlsomelobjective
sl(R.D.lKay).
AccordingltolBradfordlandlJohnson,lfarmlmanagementlislalbranchloflagriculturalleconomics,lwhic
hldealslwithlwealthlearninglandlwealthlspendinglactivitiesloflfarmerlinlrelationltolorganizationlandlop
erationloflthelindividuallfarmlunitlforlsecuringlthelmaximumlpossiblelnetlincome.
2l|lPl al gl e
,RajlMohinilDevilCollageloflAgriculturelandlResearchlStationl(RMDlCARS),lAmbikapur
AccordingltolHeadylandlJensen,lfarmlmanagement,laslthelsubldivisionlofleconomics,lwhichlconsid
erslthelallocationlofllimitedlresourceslwithinlthelindividuallfarm,lislalscienceloflchoicelandldecision-
making;landlthuslalfieldlrequiringlstudiedljudgment.
OBJECTIVES:
1. Tolexaminelthelproductionlpatternlandlresourceluselonlthelfarm.
2. Tolidentifylthelfactorslresponsiblelforlthelpresentlproductionlpatternlandlresourceluselonlthelfarm.
3. Toldeterminelthelconditionsl ofloptimalitylinlthelresourceluselandlproductionlpatternlonlthel farm.
4. Tolanalyzelthelextentloflsub-optimalitylinlthelresourceluselonlthelfarm,land
5. Tolsuggestlwayslandlmeanslinlgettinglthelpresentluseloflresourcesltoloptimalitylonlthelfarm.
RELATIONSHIPlWITHlOTHERlSCIENCES:
Farmlmanagementlintegrateslinformationlfromlvariousldisciplineslviz.,lagronomy,lanimallhusbandr
y,lsoillscience,lhorticulture,lplantlbreeding,lentomology,lgeneralleconomics,lsociology,lpsychology,l
etc.,linlitslapplicationltolthelfarm.lThelrelationshiplislexplainedlbelow.
Biologicallscience:lBiologicallscienceslprovidelinformationlonlinput-
outputlrelationshipslforlvariouslenterprises,lwhichlfacilitateslchoicelforlthelenterprise.lFarmlmanagerl
needslsuchlinformationlinltheldecisionlrelatedltolproductionlefficiency.lUnderlthis,lagronomylprovid
eslthelinformationlonlphysicallinputl–
loutputlrelationshipslinlcroplproduction.lSimilarly,lanimallhusbandrylgiveslinformationlonlthelphysic
allrelationshiplbetweenlfeedlingredientlandlbodyweightlofllivestock.lAgriculturallengineeringlexplain
slthelefficiencyloflvariouslimplementslandlmachinerylinlperforminglvariouslfarmloperations.
EconomiclTheory:lFarmlmanagementlinlfactlislalspecializedlbranchloflwiderlfieldlofleconomicslandli
tldrawsltheltoolslandltechniqueslfromleconomicsltheory.lThellawloflvariablelproportions,llawloflsubstit
ution,letc.,lwhichlarelusedlinlthelfarmlmanagementlanalysislareltheltoolslofleconomicltheory.
Supportinglsciences:lStatisticslprovidelthelbaselforlthelfarmlmanagementlspecialistltolprovidelmeth
odologylinlthelcollectionlandlanalysislofldatalpertainingltolthelspecificlfarmlproblems.
SociallSciences:lAttitudeloflthelfarmersltowardldecision-
makinglonlthelfarmlreflectltheirlpsychology.lSomelfarmerslarelrisks-
takerlinlfarming,lwhilelsomelarelaverseltolrisk.lItlislthelmentallmake-
uploflanlindividuallfarmerltoltakelriskyldecisionlorlnot.lCertainltimes,lphilosophylandlreligionlinfluen
celtheldecisionsloflthelfarmlmanagement,lparticularlylinlthelselectionlofllivestocklenterprises.lReligio
uslfeelingslstandlinlthelwayloflchoosinglalparticularllivestocklenterprise,lthoughlitlislprofitableltolthelf
armers.
3l|lPl al gl e
, RajlMohinilDevilCollageloflAgriculturelandlResearchlStationl(RMDlCARS),lAmbikapur
Thelcultivationloflnarcoticslislquitelprofitablelpropositionltolthelfarmers.lButltheldecisionltoldolsolisllim
itedlbylsociologicallandlethicallconsiderations.lLookinglintolthelharmfulleffectltheselcause,lalsociolog
istlonlthelgroundloflsocialljusticelisllikelyltoldemandlforlreductionlinltheirlareas.lOnlthelethicallgroundsl
peoplelmayldemandlalbanlonlthelcultivationloflnarcoticsltotally.
➢ MEANING,lDEFINITIONlOFlFARMS,lITSlTYPESlANDlCHARACTERISTICS,lFACTO
RlDETERMININGlTYPESlANDlSIZElOFlFARMS,lPRINCIPLESlOFlFARMlMANAGE
MENT:lCONCEPTSlOFlPRODUCTIONlFUNCTIONlANDlITSlTYPE,lUSElOFlPRODUC
TIONlFUNCTIONlINlDECISION-MAKINGlONlFARM,lFACTOR-
lPRODUCT,lFACTOR-FACTORlANDlPRODUCT-
PRODUCTlRELATIONSHIP,lLAWlOFlEQUI-
MARGINAL/ORlPRINCIPLElOFlOPPORTUNITYlCOST,lLAWlOFlCOMPARATIVElA
DVANTAGE.
FARM:lFarmlmeanslalpiecelofllandlwherelcroplandllivestocklenterpriseslareltakenluplunderlalcommo
nlmanagementlandlhaslspecificlboundaries.lInlotherlwords,litlislalpieceloflland,lwherelcroplandllivestock
lenterpriseslareltakenlunderlsinglelmanagementlanlhaslspecificlboundaries.
TypesloflFarm:lFundamentally,ltherelarelfiveltypeloflfarms,lwhichlarelgivenlbelow:
1. Specializedlfarm:lItlislalfarmlwherelmorelthanl50lperlcentloflitslincomelislobtainedlfromlalsinglelen
terprise.lThislmeanslthatlamonglthelpossiblelcropslorllivestocklenterpriseltakenluplbylfarmer,lonelp
articularlcroplofllivestocklenterpriselcontributeslmorelthanl50lperlcentloflthelincome.
Examples:lpaddylfarm,lsugarcanelfarm,ltobaccolfarm,lpoultrylfarm,lsheeplfarm,lfishlfarm,l
etc.
2. Diversifiedlfarm:lInlthisltypeloflfarm,lalnumberloflenterpriseslarelgrownlonlthelfarmlatlthelsamelti
me.lTherelislnotlmuchlsignificancelforlalsinglelenterpriselunderlthislsituation.lNolsinglelenterpriselc
ontributeslaslhighlasl50lperlcentlofltotallincomeloflthelfarm.lItlislalsolknownlaslgenerallfarm.
3. Mixedlfarm:lItlislalfarmlwherelcroplproductionlandllivestocklproductionlarelcombinedltolsustainla
ndlsatisfylaslmanylneedsloflfarmerlaslpossible.lTherelarellimitslspecifiedlregardinglcontributionlofl
livestocklenterprisesl(poultry,lfisheries,letc,)ltoltheltotallincomelonlthelfarm.lTheselenterpriseslarels
upposedltolcontributelatlleastl10lperlcentloflgrosslincome.lHowever,lthislcontributionlshouldlnotlexc
eedl49lperlcent.lMixedlfarmlprovideslemploymentltolthelfarmerlandlhislfamilylthroughoutlthelyear.lI
tlfurtherlprovideslalsortloflstabilityltolthelfarm.
4. Drylfarm:lInlthisltypeloflfarm,lcropslarelgrownlentirelylunderlrainfedlconditions.lCultivationloflcr
opslinlthoselareaslwherelannuallrainfalllisllesslthanl750lmmlislknownlasldrylfarming.lCroplfailurelislt
helmostlcommonldueltolprolongedldrylspellslduringlthelcroplperiod.lMoisturelconservationlpractic
eslarelimportantlinltheselregions.
5. Ranching:lGrazinglofllivestocklonlpubliclpastureslislcalledlranching.lThesellandslarelnotlfitlforlcul
tivation.
4l|lPl al gl e
