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Farm Budgeting Techiques For Coconut Based Farming Systems

Partial budget analysis is a simple farm budgeting technique which is often used in conjunction with the assessment of the economic viability of a component technology or cropping pattern in farming systems research. As the term suggests, partial budget considers only the variable costs involved in changing from one farming technology to another, usually improved technology. Under partial budget, the economic viability of a recommended technology maybe assessed through the calculated net benefits or returns above variable costs (RAVC) but the more signi fi cant analysis is in terms of the marginal rate of return (MRR). Marginal analysis shows what farmers can expect to gain, on the average, in return for what has been invested in changing from one farm practice to another. The analysis al so considers the variability of input and product prices and the minimun acceptable rate of return when farmers are wi11ing to adopt a gi ven technology. Partial budget analysis could be used as one of the techniques in the selection of the best alternative or profit maximizing coconut  other crop combination or coconut-livestock integration

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