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Economic optimum crop planning for maximization of farm net income in central dry zone of Karnataka: An application of linear programming model

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  • Hamsa, K.R.
  • Bellundagi, V.
  • S.M.P.S.

Abstract

This study aimed to develop an optimum crop planning for maximization of farm net income in central dry zone of Karnataka by assessing scarce resources like land, labour, groundwater and capital availability. It evaluates the potential of the land resources for recommending optimum, sustainable and appropriate land utilization in agriculture development. The study used quantitative analytical approach using microsoft excel premium solver in optimal crop plan allocation analysis. A total of 90 structured questionnaires were used to gather data necessary for analysis. The Linear programming model with an objective function that seeks to maximize net farm income subject to land, labour, capital, groundwater and minimum area for production constraints was run. Linear programming technique indicated that, at market prices, as per the optimum crop plan, the area allocated for rainfed crops was about 1,03,100 ha and for borewell irrigated area it was 41,361 ha. According to Economic pricing criteria, 40,900 ha is to be allocated under borewell irrigated and 10,3673 ha for rainfed situation. Total optimum area allocated to different crops would be 14,4461 ha and 14,4574 ha which maximizes net returns at Rs. 185.1 crores and Rs. 73 crores at market prices and economic prices, respectively. Acknowledgement : This study is part of my M.Sc work under the National Institute of Agricultural Economics and policy Research, Government of India.

Suggested Citation

  • Hamsa, K.R. & Bellundagi, V. & S.M.P.S., 2018. "Economic optimum crop planning for maximization of farm net income in central dry zone of Karnataka: An application of linear programming model," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277731, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277731
    DOI: 10.22004/ag.econ.277731
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    References listed on IDEAS

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    1. Vasant P Gandhi, 2009. "Groundwater Irrigation in India: Gains, Costs and Risks," Working Papers id:2091, eSocialSciences.
    2. Rohith, G.V. & Rashmi, K.S. & Hamsa, K.R. & Lekshmi, U. Divya & Rajeshwari, D. & Manjunatha, A.V. & Rashmi, N. & Olekar, Jagannath, 2015. "Incorporating Cost of Irrigation Water in the Currently Underestimated Cost of Cultivation: An Empirical Treatise," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 70(3), pages 1-14.
    3. Gandhi, Vasant P. & N V Namboodiri, 2009. "Groundwater Irrigation in India: Gains, Costs and Risks," IIMA Working Papers WP2009-03-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
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