DESCRIPTION OF COURSES

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AG ECON 520 AGRICULTURAL PRODUCTION AND RESOURCE ECONOMICS I (FARM MANAGEMENT)                                                                            (2L+1P) I

Objective
  This basic course in farm management discusses the various types and systems of farming and the basic economic principles as applicable to farm management. Methods of estimating costs and revenues, and farm planning and budgeting are discussed.

Theory

UNIT I
  Farm management and farm business-nature, scope and objectives. Characteristics of farming and requirements of success in farming. Task of management, classification of decisions and the process of decision making in farming. Types and systems of farming and factors affecting types of farming.

UNIT II
  Basic principles of farm management and farm business - principles of marginal returns, costs substitution in choice of  practices, Equimarginal returns, combining enterprises and time comparison. Law of comparative advantage. Farm records and farm accounting. Concept of size of farm and business.

UNIT III
  Measures of farm efficiency, Methods of evaluating farm assets, outputs and inputs, Methods of computing depreciation. Cost concepts. Elements of costs - material cost, labour cost, overhead cost. Cost statement, cost accounting, cost audit. Cost of production and pricing.

UNIT IV
  Essentials of farm planning and budgeting, farm surveys, questionnaire preparation and pretesting, data collection and analysis, enterprise budgets, partial and complete budgets and whole farm planning.

UNIT V
  Elements of risk and uncertainty in agriculture, measurement of risk and adjustments to risk, Review of farm management research, education and extension in relation to changing needs in India.

Practicals
  Basic cost concepts; costs and returns; cost accounting. Farm efficiency measures; evaluation of farm assets, outputs and inputs. Computation of depreciation. Maintenance of farm records and accounts. Budgeting – enterprise, partial and complete budgets. Farm planning. Measurement of risk in farming.

Suggested Readings