Agriculture Economics Study Important Point
Agriculture Economics Study
1. Types of farmer (according to land holding)
| Types of farmer | Land Holding |
| Marginal farmer | Less than 1 ha. |
| Small farmer | 1-2 ha |
| Semi- medium farmer | 2-4 ha |
| Medium farmer | 4-10 ha |
| Large farmerAgriExam.com | 10 ha or above |
2. Types of farmer (according to ownership) AgriExam.com
| Types Of Farmers | land |
| Small Farmers | <4 ha. |
| Medium Farmers | 4 to 10 ha. |
| Large Farmers | 10 ha. |
AgriExam.com
3. Enterprises
| Enterprise AgriExam.com | |
| Reward of Land | Rent |
| Reward of Labour | Wages |
| Reward of Capital | Interest |
| Reward of Enterprise | Profit |
4. Relationship Between MP, TP & AP
AgriExam.com
| What happens to MP, when TP is maximum? | MP is equal to zero |
| When TP is zero, what happens to AP ? | AP is zero |
| When MP is increasing, how does AP behave ? | AP also increase |
| When MP is at its maximum, is TP at the point of inflation? | Yes |
| When AP is at its maximum, is the ratio of output to input maximum? | Yes, because MP=AP |
| When AP is increasing, how does MP behave? | MP is greater than AP |
| When AP is decreasing. What is the position of MP? | MP is less than AP |
| How does TP behave, when MP is rising? | TP increases at a increasing rate |
| How does TP behave, when AP is increasing ? | TP is increasing at a decreasing rate after MP at its maximum. |
5. Finance according to period
| Loan Term | Years |
| Short term/crop loan | 1 to 1.5 |
| Medium term | 1.5 to 5 |
| Long term | 5 to 30 years |
6. Agricultural Credit & Purposes
| Loans | Purposes AgriExam.com |
| Short term | For purchasing seeds, fertilizers and for meeting out family requirements |
| Medium term | To purchase agricultural equipments, animal and for land improvements. |
| Long term | To purchase land and expensive agricultural equipments and for repayment of old loans. |
7. Three R’s of Credit
| Three R’s of Credit AgriExam.com |
| Returns from investment. |
| Repayment capacity |
| Risk bearing ability of the farmer borrower |
8. Five C’s of Credit
| Five C’s of Credit AgriExam.com |
| Character |
| Capacity |
| Capital |
| Condition |
| Common sense |
9. Seven ‘P’s of agricultural credit
| Seven ‘P’s of agricultural credit |
| Principle of productive purpose |
| Principle of personality |
| Principle of productions |
| Principle of phased disbursement |
| Principle of proper utilization |
| Principle of payment |
| Principle of protection. |
10. Difference Between Farm management & production economics
| Farm management | Production Economics |
| Micro approach | Macro approach |
| Intrafarm science | Interfarm science |
| Decisions are taken for individual farm | Decisions are made for aggregate resources of nation |
11. Difference Between Fixed cost & Variable cost
AgriExam.com
| Fixed cost | Variable cost |
| Known as sunk cost | Known as cost of variable inputs |
| It may be cash and non-cash both | It is always in cash |
| It does not change with level of output | It vary with level of output |
Agriculture Economics Study Important Point
| All Agriculture Important Tables | Click |
Sir aur economica related important point upload kre
Plz extra material r added in economics plz sir
Full form of ap tp mp
AP- Average Product
TP- Total product
MP- Marginal Product