* Research Scholar, Department of Agricultural Economics, CARDS Tamil Nadu Agricultural University, Coimbatore, Tamil Nadu
** Dean, Kumaraguru Institute of Agriculture, Sakthi Institute of Technology, Sakthi Nagar, Aappakudal, Erode, Tamil Nadu
*** Assistant Professor, PGP college of Agricultural Sciences, Palani Nagar, Sendhamangalam Road, Namakkal, Tamil Nadu
Online published on 28 July, 2016.
Under different risky situations, farmers adjust his resource allocation not only based on its availability to maximize profit but also to avoid revenue loss. Based on this assumption, the present study was carried out in three different crops such as Maize, Banana and Groundnut from three blocks namely Namakkal, Mohanur and Tiruchengode of Namakkal district by taking the number of irrigations as risk. Main objectives were measuring the risk in farming with reference to cost of cultivation of the selected crops, to derive optimal input use under different risk farming situations and to determine optimal crop pattern under conditions of risk by an appropriate risk programming model. Quadratic production function which incorporated risk was used to measure the input choice under different risk situations. Linear Programming (LP) model used to derive the optimum crop choice under given risky condition. According to the quadratic production function outcome, the number of irrigation was 11 in normal condition and it reduced to 5 when farmer face risk in maize crop. Similarly irrigation was reduced from 33 to 23 for banana and 10 to 7 for groundnut crops in normal and moderate risk situations. Result of LP infers that optimal cropping plan of Namakkal block increased the farm income to Rs.8000. For other two blocks optimal plan allocates the resource efficiently for selected crops though it makes only a marginal difference in income. This study concludes adjusting input use is a way of managing revenue under risk farming.
Input use, Risk aversion, Risk management, Water management
