Name of the experiment: Estimation of production cost and benefit cost ratio of some vegetable crops

Transcription

1 Name of the experiment: Estimation of production cost and benefit cost ratio of some vegetable crops A. Production cost Production cost of a crop refers to the total cost per unit area during producing a crop. It includes all types of cost from land preparation to products marketing. B. Why do we study cost of production? For farm planning and budgeting To know the profit or loss of a crop To estimate the production cost per unit area To identify the crops which are more profitable C. Nature of cost C.1. Input cost or variable cost This type of cost is directly devoted to the crop production and will be incurred during specific crop is grown. Examples- C.1.1. Non-material or operational cost: Labor, human, animal etc. C.1.2. Material cost: Seed, fertilizer, pesticide etc. C. or fixed cost This type of cost is indirectly related to the crop production and will be incurred irrespective at weather, will be grown or not. Examples- a) Interest on input cost or on running capital b) Interest on value of land c) Tax of land d) Common cost Premium of insurance Managerial service Night guard Depreciation of machineries D. Total production cost Input cost + Overhead cost E. Value of production per unit area F. total cost of production G. Benefit cost ratio (BCR) H. Comments From the above calculation we see that, the net income and BCR of potato cultivation is Tk.ha -1 and. So, we can conclude that, if a farmer invests BDT 1 per unit area for crop production, hence the farmer will be profited by BDT. Page 1 of 5

2 Sample 1: Production cost and benefit cost ratio of potato for 1 ha of land 1. Input cost or variable cost 1.1. Non-material or operational cost Sl. No. Operations type No. of labour Cost (BDT) 1. Ploughing (3 times) by power tiller Removing of weeds, stubbles and mowing Application of manures and fertilizers Furrow preparation and sowing of seed tubers Weeding and earthing up Top dressing (3 times) Irrigation (3 times) Application of insecticide and fungicide (3 times) Harvesting, carrying, storing and marketing Labors for security (if necessary) Material cost 1. Seed tuber t MoP Gypsum 3. Fuel for Irrigation purpose 4. Insecticide and fungicide 5. Fuel for plough purpose Total input cost t kg kg 1. Interest on land value as agreement ( BDT ha 7.5% for 4 months) Page 2 of 5

3 Total input cost + 1. Tuber total cost of production Benefit cost ratio (BCR) Sample 2: Production cost and benefit cost ratio of tomato for 1 ha of land 1. Input cost or variable cost A. Non-material or operational cost Sl. No. Operations type No. of labour Cost (BDT) 1. Preparation of seedbed and raising of seedlings Ploughing (2 times) by power tiller Removing of weeds, stubbles and mowing Application of manures and fertilizers Uprooting and transplanting of seedlings Gap filling, weeding, stalking, earthing up Top dressing Irrigation (3 times) Application of insecticide and fungicide Harvesting, carrying, and marketing Labor for security (if necessary) - B. Material cost 1. Seed g MP Gypsum t kg kg 3. Bamboo stick pieces Page 3 of 5

4 4. Fuel for Irrigation purpose 5. Insecticide and fungicide 6. Fuel for plough purpose Total input cost Sub-total (A) + Sub-total (B) 1. Interest on land value as agreement ( BDT ha 7.5% for 4 months) Total input cost + 1. Fruit total cost of production Benefit cost ratio (BCR) Sample 3: Production cost and benefit cost ratio of cauliflower for 1 ha of land 1. Input cost or variable cost: A. Non-material or operational cost Sl. No. Operations type No. of labour (Tk. 300 day -1 ) 1. Preparation of seedbed and raising of seedlings Ploughing (2 times) by power tiller Removing of weeds, stubbles and mowing Application of manures and fertilizers Uprooting and transplanting of seedlings Gap filling, weeding and earthing up Top dressing Irrigation (3 times) Cost (BDT) Page 4 of 5

5 9. Application of insecticide and fungicide Harvesting, carrying and marketing Labor for security (if necessary) - B. Material cost 1. Seed g MP 3. Fuel for Irrigation purpose 4. Insecticide and fungicide 5. Fuel for plough purpose 8-10 t Total input cost + 1. Interest on land value as agreement ( BDT ha 7.5% for 4 months) Total input cost + 1. Curd total cost of production Benefit cost ratio (BCR) Home work (Not necessary to write on PNB) Sample 4. Estimate the cost of production of carrot in 1 ha of land with economic return Sample 5. Estimate the cost of production of cabbage in 1 ha of land with economic return Sample 6. Estimate the cost of production of brinjal in 1 ha of land with economic return Sample 7. Estimate the cost of production of radish in 1 ha of land with economic return Page 5 of 5