Loading...
Theses
Browse
1 results
Search Results
ThesisItem Open Access Income savings and capital formation in farm households of Kodakara development block(Department of Agricultural Economics, College of Horticulture, Vellanikkara, 1996) Prema, A; KAU; Thomas, E KThe present investigation on income, savings and capital formation in farm households of Kodakara development block was undertaken during the agricultural year 1994-95. The study aimed at analyzing the various sources and amounts of income, estimating the costs and associated variables influencing the income and savings pattern, to assess the capital output ratio on farms and to identify the constraints influencing capital formation. Data for the study was generated through a sample survey of 120 farm households. Three stage random sampling was adopted for the study. Suitable statistical techniques were employed in the analysis of data. The average income of the sample households worked out to Rs.39019.30 of which 27.60 per cent was from farm income and 72.40 was contributed by non farm income. Farm income comprised of income from crop (78.05 %), livestock (20.00 %) and others like sale of farm assets etc. (1.95 %). Services (88.55 %) and business (10.07 %) contributed to the non-farm income of the households. Gross farm income, farm business income, family labour income and net income were Rs.16061.20, Rs.9368.85, Rs.7890.70 and Rs.8743.55 respectively. The benefit –cost ratio of the farms worked out to 1.79 and the capital output ratio was 3.08. Average expenditure of farm households was Rs.29507.70 of which crops accounted for 22.70 per cent, livestock 10.50 per cent and consumption 64.80 per cent. Food items accounted for 69.05 per cent of the consumption expenditure of farm households and it was observed that as the farm size and family size increased, the percentage expenditure on food decreased. The disparity in non-farm income was observed to be higher than the disparity in farm income and it decreased with increase in farm size. The saving pattern showed that 81.67 per cent, 67.5%, 56.87 per cent, 35.83 per cent and 76.07 per cent of the farm households had accounts (transaction with) in co-operatives, commercial banks, post offices, LIC, kurries and chitties. Savings of sample household amounted to Rs.9511.60 which was 24.40 per cent of the total income. Path analysis identified non-farm income, net farm income and family expenditure as the three important variables with substantial direct effect on savings. The asset structure of the sample farm households showed that land was the major item of asset. If land, residential building and household durables were excluded, wells and tanks followed by livestock occupied the major portion of his asset. Purchase of irrigation appliances and livestock were the major item of capital formation in the farms. The rate of capital formation increased as the farm size increased. High consumption expenditure, followed by non-availability of labour and high wage rate were perceived by the respondents as the important constraints to capital formation in the study area. High price of inputs followed by low product price formed the fourth and fifth important constraints. Unemployment of educated youth and lack of irrigation facilities were also remarked as constraints to capital formation.