Theory
Meaning and concept of farm management, objectives and relationship with other sciences. Meaning and definition of farms, its types and characteristics, factor determining types and size of farms. Principles of farm management: concept of production function and its type, use of production function in decision-making on a farm, factor-product, factor-factor and product-product relationship, law of equi- marginal/or principles of opportunity cost and law of comparative advantage. Meaning and concept of cost, types of costs and their interrelationship, importance of cost in managing farm business and estimation of gross farm income, net farm income, family labour income and farm business income. Farm business analysis: meaning and concept of farm income and profitability, technical and economic efficiency measures in crop and livestock enterprises. Importance of farm records and accounts in managing a farm, various types of farm records needed to maintain on farm, farm inventory, balance sheet, profit and loss accounts. Meaning and importance of farm planning and budgeting, partial and complete budgeting, steps in farm planning and budgeting-linear programming, appraisal of farm resources, selection of crops and livestock’s enterprises. Concept of risk and uncertainty occurs in agriculture production, nature and sources of risks and its management strategies, Crop/livestock/machinery insurance– weather based crop insurance, features, determinants of compensation. Concepts of resource economics, differences between NRE and agricultural economics, unique properties of natural resources. Positive and negative externalities in agriculture, Inefficiency and welfare loss, solutions, Important issues in economics and management of common property resources of land, water, pasture and forest resources etc.