Ag. Econ. 6.4 (2+1) Farm Management, Production and Resource Economics

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Production economics Introduction, Objectives, Scope, Subject Matter, Basic terms & Concepts 1-5 2. Law of returns Law of variable proportions, Types of returns and estimation 6-9 3. Seven cos... t concepts Meaning and Concept of Cost, types of costs and their relationships 10-22 4. Factor-Product relationship Optimal input and output levels 23-27 5. Factor-Factor relationship Isoquant, iso-cost line, least cost combination 28-33 6. Product-Product relationship Production possibility curve, isorevenue line, Optimal product combination, ridge line and expansion path 34-39 7. Returns to scale Concept and Types 40-41 8. Farm cost concepts and Income measures Importance of cost in managing farm business, Estimation of gross farm income, net farm income, family labor income and farm business income 42-43 9. Farm management Introduction, Meaning & Concept, Objectives, Scope, Relationship with other sciences 44-45 10. Farm resource management Meaning and Definition of Farm, its types and characteristics, factors determining types and size of farms 46-49 11. Farm management decisions Strategic, administrative and marketing decisions 50-52 12. Economic principles applicable in farm management Equi-marginal, opportunity cost, time comparison principles, comparative advantage 53-56 13. Farm records and accounts Advantages, characteristics, difficulties, systems & types 57-65 14. Farm inventory Methods of valuation 66-69 15. Farm financial statements Balance sheet, Cash flow statement and Profit & loss Statement 70-78 16. Farm planning Types, characteristics, steps 79-81 17. Farm budgeting Complete budget, Enterprise budget, Partial budget 82-84 18. Appraisal of farm resources Measures of efficiency of land, labour, capital and management 85-88 19. Risk & Uncertainty in agriculture Types and management strategies 89-92 20. Insurance in agriculture Crop, livestock, machinery and weather-based crop insurances, Features and Determinants of compensation 93-99 21. Resource Economics: Concept & Properties Natural resource classification & characteristics; Management of renewable and non-renewable resources 100-105 22. Positive & Negative Externalities in agriculture Externalities & types; Market failure, Market imperfections; Policies for externalities 106-108 23. Inefficiencies and welfare loss Efficiency and types; Market efficiency levels; Reasons for inefficiency in resource utilization; Solutions 109 24. Issues in economics and management of Common property resources Major issues in use of natural resources, Productivity equity, sustainability 110-115 REFERENCE BOOKS No. Name of Book Author(s) 1 Agricultural Economics S. Subba Reddy P. Raghu Ram T. V. Neelkanta Sastry I. Bhavani Devi 2 Agricultural Finance and Management S. Subba Reddy P. Raghu Ram 3 Fundamentals of farm Business Management S. S. Johl T. R. Kapur 4 Production Economics & Farm Management S. P. Dhondyal G. N. Singh 5 Economics of Farm Production and Management V.T. Raju, D.V.S. Rao 1 Dr. K. P. Thakar Dinesh D. Chaudhari Chapter 1 PRODUCTION ECONOMICS: MEANING • Agricultural Production Economics is a division of Agricultural Economics. • It is concerned with the selection of production patterns and resource use efficiency in order to maximize the objective function of a farmer or farming community or the nation within a framework of limited resources. DEFINITION Agricultural Production Economics is an applied field of science wherein the principles of choice are applied to the use of land, labour, capital and management resources in the farming industry. SUBJECT MATTER Agricultural Production Economics involves: • Analysis of production relationships • Principles of rational decisions. • Productivity of resources • Resource use efficiency • Resource combination • Resource allocation • Resource management The subject matter of production economics involves topics like factor-product relationship, factor-factor relationship, product-product relationship, size of the farm, returns to scale, credit, risk and uncertainty, etc. The agricultural production economics is therefore concerned with any phenomena, which have a bearing on economic efficiency in the use of resources. Any Agricultural problem that falls under the scope of resource allocation and marginal productivity analysis is the subject matter of Agricultural Production Economics. GOAL • At an individual farm level: To provide guidance to individual farmers in using their resources most efficiently. • At national level: To rationalize the use of resources from the standpoint of economy. OBJECTIVES OR IMPORTANCE The main objectives of Agricultural Production Economics are: • To determine the conditions which provide for optimum use of resources. • To determine the extent to which the existing use of resources deviates from the [Show More]

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