Determining Optimal Solution of Short Term Loan Use to Maximize Net Farm Return in Jorhat District of Assam

Abstract

The present study of Determining optimal solution of short term loan use to maximize net farm return in Jorhat District of Assam was undertaken to examine the possibilities and prospects of increasing net return through optimal allocation of resources under existing financial environment. The study was carried out through collection of data by interview method and linear programming technique was used to develop optimum plans for different farms of the study area. The results of the study brought out that there was a tremendous scope to shift the resource allocation to more revenue generating high value crops. The analysis of the results shows that the farmer’s optimal cropping pattern was sugarcane, pea, potato, cauliflower and cabbage in all the farm groups. The operation wise labour use was also increasing significantly in optimal plan. The results showed that in order to obtain an optimum farm credit farm plan, the short term farm credit were used. The optimum farm credit was reached when the net revenue were maximum in all the farm groups. Credit played an important role in increasing net farm return. The effect of credit on income was inversely related with the size of the farm whereas the credit needs were directly related to the farm size.