Year: 2015 | Month: September | Volume 8 | Issue 3
An economic analysis of farm risk under water stress production environment in Namakkal district of Tamil Nadu
DOI:10.5958/2230-732X.2015.00085.6
Abstract:
Agriculture is the single largest private sector occupation and is also considered to be the riskiest business since it mostly depends on the vagaries of nature. It is important for all decision makers to
know the degree of risk involved in each activity. Once the risk corresponding to an a ainable level of expected return is known, depending on the risk taking ability, diff erent farm plans having diff erent level of risk can be taken up by diff erent farmer. In this context, the present study a empts to analyze the agricultural production risk in Namakkal district because of the availability of dry farms. In this
study, survey was conducted in four blocks of the same district. The overall objective of the study is to analyze the farm risk to derive optimal input use and optimal cropping pa ern under the conditions
of risk by an appropriate risk programming models. In the case of cost of cultivation of selected crops, total cost was high i.e. ` 62208 for banana and followed by tomato i.e. ` 38976. Banana and tomato
generated higher returns viz. ` 97976 and ` 49516 when compared to maize and groundnut. The results of quadratic production function concluded that when risk level increases, optimum quantity of inputs
used for the production was decreased. The results showed that even though decline trend in income, the resources which were used in the cultivation as an effi ciency factor
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