Course Code: AEC 102
Course Title: Farm Management and Production Economics
Credit Hours: 3 (2+1)
Full Marks: 75
Theory: 50
Practical: 25
Course Objectives
Upon completion of this course, students will be able to:
- Understand the principles of farm management and production economics.
- Analyze farm resources with alternative uses for efficient allocation.
- Apply economic tools and techniques for farm planning, budgeting, and decision-making.
- Gain practical skills in farm record keeping, financial analysis, and efficiency measurement.
I. Course Syllabus
- Definition, nature, scope, and importance of farm management in relation to other sciences.
- Farm resource management – land, labor, machinery, equipment, and civil works.
- Farm management problems in Nepal.
- Production relationships – factor-product, factor-factor, and product-product relationships.
- Principles of farm management decisions: principle of variable proportion, cost principle, factor substitution, equi-marginal return, opportunity cost, principles of comparative advantage, and principle of time comparison.
- Farm planning and budgeting.
- Farm records and accounts.
- Farm efficiency measures.
- Risk and uncertainty in farm management.
- Linear programming: concept and approach.
II. Course Outline
A. Lecture Plan
| S.N. | Topics | No. of Lectures |
|---|---|---|
| 1 | Concept, nature, subject matter and scope of farm management | 2 |
| 2 | Importance of farm management and problems related to management of farms in Nepal | 1 |
| 3 | Management of farm resources – land, labor, machinery, equipment, and civil works | 4 |
| 4 | Production relationships – factor-product relationships | 2 |
| 5 | Factor-factor relationship and least-cost combination | 2 |
| 6 | Product-product relationship and principle of comparative advantage | 2 |
| 7 | Principles of farm management decisions – variable proportion, factor substitution, cost principle, equi-marginal return, opportunity cost, time comparison, and comparative advantage | 5 |
| 8 | Farm planning – characteristics and techniques | 2 |
| 9 | Farm budgeting – enterprise, partial budgeting, and complete budgeting | 1 |
| 10 | Farm inventory, depreciation, and valuation of farm assets | 2 |
| 11 | Farm records keeping – balance sheet, income statement, and cash flow statement | 1 |
| 12 | Farm efficiency measures | 1 |
| 13 | Risk and uncertainty – concept, types, safeguards, and measures | 2 |
| 14 | Linear programming – concept and approach | 2 |
| Total | 30 |
B. Practical Plan
| S.N. | Topics | No. of Practicals |
|---|---|---|
| 1 | Determination of optimum input use and maximization of profit using one input | 1 |
| 2 | Least-cost combination of inputs | 1 |
| 3 | Revenue maximization through optimum enterprise combination | 1 |
| 4 | Farm record keeping | 1 |
| 5 | Preparation of farm inventory | 1 |
| 6 | Development of new farm plan | 1 |
| 7 | Preparation of balance sheet of a farm | 1 |
| 8 | Preparation of income statement of a farm | 1 |
| 9 | Development of cash flow budget of a farm | 1 |
| 10 | Farm physical efficiency measures | 1 |
| 11 | Farm financial efficiency measures | 1 |
| 12 | Computation of depreciation of farm assets | 1 |
| 13 | Valuation techniques of farm assets | 1 |
| 14 | Exercise on time value of money | 1 |
| 15 | Exercise on linear programming | 1 |
| Total | 15 |
References
- Panda, S. C. (2007). Farm Management and Agricultural Marketing. Kalyani Publishers, New Delhi.
- Manson, J. (1996). Farm Management. Kangaroo Press, Pennsylvania State University.
- Kay, R. D. & Edwards, W. M. (1994). Farm Management. McGraw Hill, New Delhi.
- Kahlon, A. S. & Singh, K. (1992). Economics of Farm Management in India. Allied Publishers, New Delhi.
- Shankhyan, P. L. (1983). Introduction to Farm Management. Tata McGraw-Hill, New Delhi.
- Johl, S. S. & Kapoor, T. R. (1973). Fundamentals of Farm Business Management. Kalyani Publishers, New Delhi.
