Issues in Farm

Management

Prof. V.R. Kishore Kumar,

Faculty in Agri Production
Management, CSIBER,
 Chapter contents..
Size and productivity debate

Measurement of farm efficiency

Irrigation Management

Production Planning, specialization and

Diversification
Size and Productivity Debate
 Size of the Farm
Size of the farm influences the welfare of
the farmers
Better standard of living in turn encourages
their children to be in farming.

In India, the law of inheritance brings down

the size of the farm operated by a farm

family with every passing generation. Thus,

the problem of fragmentation

 The various size groups are as follows
Farm Type Size of the farm
(1 hectare =
2.47105acres)
Marginal Bellow One Hectare
Small Between 1 to 2
hectares
Semi- Medium 2 to 4 hectares
Medium 4 to 10 hectares
Large 10 hectares and
above
 Size and
Farm
Size is returns
referred in terms of large and small

farms.

Efficiencies relation with large and small

farms. (favorable and unfavorable conditions)

Even if favorable price conditions are there

climate places havoc with the crop production

 Small Size Farms
Major hurdle in the way of introduction
of new and improved technology

Problem of Smaller land holdings and

lack of purchasing power of small
farmers
 Advantages
In the period of low prices, loss is
smaller

The farmer can devote personal time to

monitor daily activities of farm

Large farmers and social perception

Can withstand in the period of economic

depression or adverse weather
conditions
 Disadvantages
Inability to use best available tools and
best production methods

Too small farm and problem of employment

Loss of marketing economies

Difficulty in getting required credit at lower

interest rate

Overhead charges are high

 Large Size farms and

Advantages
Greater output and greater net incomes
are the features of large farms but the
reverse in adverse conditions too

Greater labor efficiency

Best utilization of farm machinery and

reducing cost per unit of production

Fixed costs are lower on large sized farms

 Advantage over purchase of supplies as
well as disposal of products I.e.
marketing benefits

Diversification of farming possible

 Disadvantages
Unfavorable price environment affecting
the high investments and loss due to
poor yields

In specific cases , large farms are

relatively less fertile

Inefficient management of labor on large

farms brings in greater disadvantage
 Factors influencing Farm Size
Population size on the farm
Availability of funds
Climate
Managerial abilities
Land Ceilings
Availability of Irrigation of water
Extensive and intensive cultivation
Technology to be adopted
Perishability and Durability of
commodities
Law of Inheritance
 Measures of
Farm Size
The following measures are used to
express the size of the farm

1.Number of Acers or Hectares

2.Labour

3.Total Capital

4.Value of Production
Size and Productivity
Debate