Sr.

Year of Purchase Value Useful Life

Category No.
No purchased (Rs.) (Years)

A Implement and Equipment

a ) Harrow 1 2009 60,000 25

c ) sprayer 3 2014 15,000 5

d) electric motor 2 2005 30,000 25

B Machinery:

a) Tractor 1 2008 310000 24

C Hand tools:

Sickle 5 2023 500 5

Axe 3 2020 900 10

Hoe 2 2021 200 5

Spade 2 2020 400 5

𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑣𝑎𝑙𝑢𝑒
Junk value = × 10
𝟏𝟎𝟎

𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑣𝑎𝑙𝑢𝑒−𝐽𝑢𝑛𝑘 𝑣𝑎𝑙𝑢𝑒

Depreciation
𝑈𝑠𝑒𝑓𝑢𝑙 𝐿𝑖𝑓𝑒

Present value=Purchase value-Total Depreciation

Crop wise depreciation Charges: R s . 1 8 5 6 4

 𝐂𝐫opwise Depreciation charges = Total Depreciation Charges × Ploted Area
Gross Cropped Area

Sr.
Crops Plot Area (ha) Depreciation (Rs.)
No.

1 Soybean 1.20 6961.50

2 Wheat 1.20 6961.50

4 Onion 0.40 2320.50

5 Maize 0.40 2320.50

Total 3.20 18564

Table No:3.12-Gives the information about Crop wise depreciation charges.

Which shows that sugarcane required higher charge

Table No.3.13 Fixed Capital

Sr. No. Assets Purchase Value (Rs.)

1 Implements and Equipments 1,05,000
2 Machinery 3,10,000
3 Hand tools 2000
Total 3,87,000

Table No:3.13 - Shows the information about fixed capital of host farmer.
Which includes purchased value of implements, Machinery and hand
tools .their total value is Rs.3,87,000.
Interest on Fixed Capital

Interest on Fixed Capital @ 10% on Fixed Capital

Interest 𝐨𝐧 𝐟𝐢𝐱𝐞𝐝 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 = 3,87,000 × 10/100

= 38,700

Table No.3.14 Crop Wise Interest on Fixed Capital

Crop wise interest on fixed capital :

Crop wise interest on fixed capital = Interest on fixed capital × Plot area

Gross Cropped Area

Sr. No. Crops Area (Ha) Intrest rate (Rs)

1 Soybean 1.20 14512.50
2 Wheat 1.20 14512.50
3 Onion 0.40 4837.50
4 Maize 0.40 4837.50
Total 3.20 38700
Table No:3.14 - Reveals the information about crop wise interest on fixed
capital

Crop wise Incidental Charges

Crop wise interest on fixed capital = Total incidential charges × Plot are
Gross Cropped Area

Sr. No. Crops Area (Ha) Incidental Charges

1 Soybean 1.20 1,031.25
2 Wheat 1.20 1,031.25
3 Onion 0.40 343.75
4 Maize 0.40 343.75
Total 3.20 2,750

Table No:3.15 -Gives information about crop wise Incidental charges. Total incidental charges are Rs.

2,[Link] are divided into 4 crops.

Land Revenue:

Total land Revenue =

Cropwise interest on land revenue = Total land revenue ×Plot Are

Gross Cropped Area

Sr. No. Crops Area (Ha) Land Revenue (Rs.)

1 Soybean 1.20
2 Wheat 1.20
3 Onion 0.40
4 Maize 0.40
Total 3.20

Table No:3.16 -Gives information about crop wise Land revenue . Total Land revenue are

Rs. .Which are divided into 4 crops.

Irrigation Structure (Excluding well and bore well):

 Deprecation Total Year of Purchase Usefull Junk Deprecation
on No. Purchase Value Life Value
Well 1 2002 120000 50 12000 2,160
Electric 2
Motor
5 HP 1 2005 15000 15 1500 900
5 HP 1 2008 15000 15 1500 900
Total 1,50,000 3,960

Table No:3.17 -Reveals the information of irrigation system. Which shows source of irrigation .and

also include the year of Purchase, useful life, purchase value, junk value, depreciation and present

value. Total Purchase value of irrigation system is Rs. 1,50,000

Interest on irrigation structure = 1𝟎%𝐨𝐟 𝐩𝐮𝐫𝐡𝐚𝐬𝐞 𝐯𝐚𝐥𝐮𝐞

1,50,000
Interest on irrigation structure = ------------------- × 10
100

Interest on irrigation structure = Rs. 15,000

Irrigation Charges

Sr. Crops Plot Area No of Irrigation Total Hours

No. (Rs)
1 Soybean 1.20 3 18
2 Wheat 1.20 9 54
3 Onion 0.40 8 52
4 Maize 0.40 4 24
Total 3.20 24 148

Table No:3.18 – Reveals the information about the total irrigation hours is 424
hrs. Which is divided into 5 crops

Total Electricity Bill = Rs. 9000

Minor repair = Rs. 800
Total hours Utilized = 148 hr.

Crop Wise Irrigation Charges =

{Electricity bill + Minor repairs}

Machine Maintenance charge = -------------------------------------------------

Total hours utilized

= Rs. 66.21

𝐂𝐫𝐨𝐩𝐰𝐢𝐬𝐞 𝐢𝐫𝐫𝐢𝐠𝐚𝐭𝐢𝐨𝐧 𝐜𝐡𝐚𝐫𝐠𝐞𝐬

{Interest on irrigation structure @ 10%}

MMC×Total irrigation hours + ------------------------------------------------- x Plot Arae

Gross Cropped Area

Sr. Crops Area MMC Irrigatio Intrest Gross Crop

No (Ha) (Rs) n hours on croped Wise
. inrrigati Area irrigatio
on n
structure charges
(Rs.) (Rs.)
Soybean 1.20 66.21 18 15,000 1.20 6,816.17
 Wheat 1.20 66.21 54 15,000 1.20 9,200.34

Onion 0.40 66.21 52 15,000 0.40 5,317.92

Maize 0.40 66.21 24 15,000 0.40 3,464.04

Total 3.20 148 3.20 24,798.47

Table No:3.19- Observes Crop wise irrigation charges.

CROP WISE OVERHEAD COST:

Table No:3.20 Crop Wise Overhead Cost of existing crops

Sr.N Crops Area(ha) Crop wise Incidental Interest on Irrigation Land

o. Depreciation Charges fixed capital Charge Revenue

1 Soybean 1.20 6961.50 1,031.25 14512.50 6,816.17

2 Wheat 1.20 6961.50 1,031.25 14512.50 9,200.34

3 Onion 0.40 2320.50 343.75 4837.50 5,317.92

4 Maize 0.40 2320.50 343.75 4837.50 3,464.04

Total 3.20 18564 2,750 38700 24,798.47

Table No:3.20 - Observe the Crop wise overhead cost .Shows the information about Crop wise

depreciation, incidental charges, interest on fixed capital, land revenue and crop wise irrigation

charges.
Table no.-3.21 Household Assets:

Sr. No Particulars Numbers Value (Rs)

1 Two-Wheeler 1 80,000

3 Television 1 20,000

4 Refrigerator 1 15,000

5 Mixer Cum Grinder 1 5,000

Table no.-3.21- Indicates all the household assets of the host farmer. He having 2 two-

wheelers and other household appliance including their purchase value.

Annual gross incomes (Previous year)

Sr. No. Source Amount (Rs.)

1 Crops 6,50,000

2 Livestock 70,000

Total 7,20,000
Table No: 3.22-Shows the information about the Annual gross income of the Farmer which is

about Rs.7,20,000. He earns Rs.6,50,000 from crops and Rs.70000 from livestock.

Crop wise input used by farmer

Crop: Soyabean Variety: Phule Sangum Season: kharif Area(ha):

1.20

Sr. Item of Cost Per Plot Per Hectare

Unit Value (Rs.)
No. Qty. Rate Value
(Rs.)
(Rs.)
1. i) Hired Human
Labour

a) Male Days 12 350 4200 3500

b)Female Days 36 250 9000 7500

2. I) Hired Bullock Days 5 500 2500 2083.33

labour

ii) Owned Bullock Days - - - -

labour

3. i) Hired Machinery Hour - - - -

Used

ii) Owned Hour 6 200 1200 1000

Machinery Used

4. Seed Purchased Kg. 90 160 14400 12000

Value of owned Rs.

seed
5. Manure Tons
6. Fertilizers Kg.
Straight Kg.
 Mixed Kg.
Complex Kg.
Water-soluble Kg.
Micronutrient Kg.
7. Insecticides Lit.
Pesticides Lit.
Fungicide Lit.
Weedicide
Hormonal spray Lit.
Other Lit.
8. Irrigation Charges Rs.

9. Incidental Charges

Per hector cost of cultivation

Crop: Variety: Season: Area:

Sr. Item of Cost Per Plot Per Hectare

Unit Value (Rs.)
No.
Qty. Rate Value
(Rs.)
(Rs.)
1. i) Hired Human
Labour

a) Male Days

b)Female Days

2. I) Hired Bullock Days

labour

ii) Owned Days

Bullock labour

3. i) Hired Hour
Machinery Used

ii) Owned Hour

Machinery Used
 4. Seed Purchased Kg.

Value of owned Rs.

seed
5. Manure Tons

6. Fertilizers Kg.
Straight Kg.
Mixed Kg.
Complex Kg.
Water-soluble Kg.
Micronutrient Kg.
7. Insecticides Lit.
Pesticides Lit.
Fungicide Lit.
Weedicide
Hormonal spray Lit.
Other Lit.
8. Irrigation Rs.
Charges
9. Incidental
Charges
10. Total Working Rs.
Capital (Total of
1to9)
11. Interest on
Working Capital Rs.
@ prevailing
bank rate for
full Crop Period
12. Total Operational
Cost(10+11)
13. Land Revenue & Rs.
Other cesses
14. Depreciation on Rs.
Implements,
 Machinery &
Building
15. Rental Value of
land 1/6th of
gross Return
16. Interest on Fixed
Capital
17. Total Fixed Cost
18. Total Cost
(12+17)
COST CONCEPT
Total Operational
19. Cost
20. Land Revenue &
Other
cesses
21. Depreciation on
Implements &
Machinery
22. Cost A
1(19+20+21)
23. Rent Paid for
Leased in Land
24. Cost A 2 (22+23)

Interest on Fixed
Capital Excluding
25.
land(10% on
Fixed Investment)
26. Rental Value of
Owned land
(1/6th of gross
Return)
27. Amortization
Value in Case of
Fruit Crops
28. Cost B1
(22+25+26+27)
 29. Rental Value of
Owned land-
Land Revenue &
Other cesses (26-
20)
30. Cost B2
(28+29+23)
31. Imputed Value of
Family
Labour.
32. Supervision
Charges (10% of
Cost A)
33. Cost C1
(28+31+32)
34. Cost
C2(30+31+32)

Yield

Sr. Item Unit Per Plot Per Hectare

No. Qty. Rate Value
(Rs.) (Rs.)
1. Main Product
2. By-Product
Gross Income

Analytical tools or estimated income measures used

Sr. Particulars Formula Solution
No.

Farm Gross Income –

business CostA1orCostA2
income
Family Gross Income –
labour CostB1orCostB2
income
Farm FBI-Imputed Value of
investment
income Family labour

Net income GrossIncome -

CostC1orCostC2

B.C. Ratio Gross Income /

CostC2

Per Quintal Cost C1 or CostC2-

cost of Value of by Product /
production Yield in (qtl)

Per hectare CostC1 or CostC2 /

Area(ha)
cost of
production