Mellor is of the view that there is much under employment in traditional agriculture. Fertilizers, new seeds, power are some of these inputs. His argument is as follows: when prices of agricultural products are raised, two things happen. There are many supporting services which have to be developed if the agricultural production proper is to increase. A curve showing all such combinations of goods and services; on the one hand and leisure on the other which give him the same satisfaction is called Iso-utility curve. (2) The developed non-farm sector begins to use its own savings for investment and therefore docs not need any capital from the agricultural sector. Efforts have to be made to made them acceptable to the farmers. This is because withdrawal of labour will give a higher per capital income to the people who are still left in the agricultural sector. Infrastructure necessary for the development and production of these inputs is to be developed. As each dose of additional goods and services have little utility due to rigid consumption pattern, it will progressively exchange for a smaller amount of leisure. Capital formation in traditional agriculture is very low. The iso-utility curve, will thus be convex to O (from which leisure is measured in the direction of Oc, the marginal rate of substitution between the two commodities falling as is shown in diagram, (it may be noted that we can also say that the iso-utility curve has been drawn with C as the origin in diagram I. OY should indicate the maximum level of income which a farmer can aspire for. TOS4. This phase involves the use of new inputs with high marginal productivity. (v) Development of communication system to help farmers make choices. The only difference will be that the production possibility curve will be higher for larger farm than for the smaller farms though it will start from the origin in each case. From the above analysis. Even the capital is provided by the farmer from his own source. Mellor emphasises scientific research at regional level. And, how Schultz's writings on agriculture validated these approaches. At O, all man-time has been used and there is no leisure left. One need only look at the examples of Nyerere's Tanzania or, to lesser degree, India in the 1960s to see the strong statist overtones that such an aproach took. one likes to substitute labour for leisure. The supply therefore falls when prices of agriculture products increase. This is because all efforts should be made by the farmers to get the maximum output from land. This will ensure optimum use of resources from the long term point of view. However, as the present situations when both machinery and fertilisers are available the world order, it is desirable that the traditional agriculture of a country enter the 2nd phase and third phases of development in the order. As their income rises, the phenomenon of backward sloping supply curve-relevant for the traditional agriculture will apply and the total agricultural output will fall. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. The rigid consumption pattern of the farmers affects the shape of the iso-utility curve as drawn with O as the origin. It is only here that labour will be used up to a point where its marginal productivity is equal to zero. In the diagram production possibility curves A&B pertain to a subsistence or below subsistence farm. Mellor’s definition of traditional agriculture is much different from given by Schultz. On the one hand, there is a temptation to produce more, i.e. The new inputs do not involve the use of too much of capital, and are complementary rather than competitive with labour. (iv) Setting up of institutions to services agricultural production. Secondly, in this phase, the inputs are not highly capital using. This is negative income effect of rise in prices of agricultural products. It is a level which indicates changing standard of living found in dynamic, non-traditional agricultural societies. This according to Schultz, showed that marginal productivity of labour was not zero. In this regards, he further points on that regional diagnostic studies be conducted to ensure suitability of the package. Mellor does admit that in traditional agriculture, some non-traditional inputs like fertilizers have been used. However, he point out that when agriculture gets going in the 2nd phase, it will provide funds for the non-farm sector to develop. Extension services have to be developed to enable farmer make choices out of various alternative inputs and practices which go on appearing, in a dynamic agriculture. In 1919, according to Schultz agricultural production fell.

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