Determining Optimal Solution of Short Term Loan Use to Maximize Net Farm Return in Jorhat District of Assam

Main Article Content

Pallavi Deka
Sinki Barman
Nivedita Deka
Jayanta Prasad Hazarika

Abstract

The present study of Determining optimal solution of short term loan use to maximize net farm return in Jorhat District of Assam was undertaken to examine the possibilities and prospects of increasing net return through optimal allocation of resources under existing financial environment. The study was carried out through collection of data by interview method and linear programming technique was used to develop optimum plans for different farms of the study area. The results of the study brought out that there was a tremendous scope to shift the resource allocation to more revenue generating high value crops. The analysis of the results shows that the farmer’s optimal cropping pattern was sugarcane, pea, potato, cauliflower and cabbage in all the farm groups. The operation wise labour use was also increasing significantly in optimal plan. The results showed that in order to obtain an optimum farm credit farm plan, the short term farm credit were used. The optimum farm credit was reached when the net revenue were maximum in all the farm groups. Credit played an important role in increasing net farm return. The effect of credit on income was inversely related with the size of the farm whereas the credit needs were directly related to the farm size.

Keywords:
Linear programming, optimum allocation, farm credit

Article Details

How to Cite
Deka, P., Barman, S., Deka, N., & Hazarika, J. (2019). Determining Optimal Solution of Short Term Loan Use to Maximize Net Farm Return in Jorhat District of Assam. Asian Journal of Agricultural Extension, Economics & Sociology, 34(4), 1-10. https://doi.org/10.9734/ajaees/2019/v34i430208
Section
Original Research Article

References

Ijere MO. The lessons of state credit institutions in developing countries: The Nigerian Experience. Journal of Agricultural Administration.1993;6(4):85-95.

Thierauf RJ, Klekamp RC. Decision making through operation research (2nd Edition). New York, John Wiley and Sons.1975;551.

K. Varalakshmi K, Handigol J, Yeledhalli RA. Optimum crop enterprise mix for the farmers in Kurnool district of Andhra Pradesh, Karnataka Journal of Agricultural Science. 2011;24(5):661-667.

Adeyemo R. Strategies for improving Agricultural Credit in Nigeria: Saving and Development.1982;18(2):8-95.

Sharma JS, Prasad B. An assessment of production credit needs in developing agriculture. Indian Journal of Agricultural Economics.1971;26(4):503-511.

Singh SK, Ramanna R. The role of credit and technology in increasing income and employment on small and large farms in Western region of Hyderabad district, Andhra Pradesh. Indian Journal Agricultural Economics. 1981;36(3):50-61.

Gajanana TM, Sharma BM. Income and employment prospects of drought prone farmers - Role of credit and technology. Agricultural Situation in India. 1990;45(5):307-312.

Sastry TVN. Optimum enterprise system for farmers in Chittoor district of Andhra Pradesh, Ph.D Thesis, University of Agricultural Science, Bangalore (India); 1993.

Deoghare PR. Economic analysis of farm income, labour employment and credit needs of farms in Mathura district of Uttar Pradesh. Agricultural Situation in India. 1997;54(6):561-563.

Abu GA, Odoemenem IU, Ocholi A. Determining optimum farm credit need of small scale farmers in Benue State. Journal of Economics and International Finance. 2011;3(10):564-570.

Osama S, Mohamed E, Kansoh RM. Optimization of the cropping pattern in Egypt. Alexandria Engineering Journal. 2017;56:557-566.