Visit a farmer and collect information about his agricultural product on the basis of cost of production, investment, price and profit and analyse the problems faced by him?
Could you give me a site or at least a format on what to write and some key points
Answers
I'm the son of a farmer and from the info needed, it doesn't seem like there's a need to find your friendly farming neighbor to answer the question. Use a theoretical farmer to save time, give him a name like Hayden Rube, and make him a theoretical farm from which you will get your data from.
Key Points:
Basis of Cost of Production => Basically the manufacturing cost. It is the sum of all resources expended in the process of making a product, which is separated into 3 categories:
Direct Materials Cost - What raw materials will you need to make the farmland? Use common sense. You'll need the basics, at the very least. Soil, Water, Crop Seeds(organic or inorganic? GMO or non GMO?), and soil helpers like mulch. To find out their total cost, find out the cost of each thing. How big will your farm be area-wise? 15 acres? How deep will the soil be?(this depends on what crop you want to grow) How much will the water cost? For this, calculate how much water in gallons or liters each hectare of crop needs on average per day. Again, choose your crop. It will be a major decider in your costs. I suggest wheat for ease and simplicity. It's a staple crop and a simple crop altogether, so it'll be easier to find data for your answer using wheat.
Direct Labor Cost - How big is the farm? If it is larger than 10 acres of farmland then you will need workers. Nearly all farmers that I've seen in the south of the U.S. now employ illegal immigrants. My neighborhood generally pays about $80-$100 per 8 hours of work for each immigrant worker. It is easier if you take in an immigrant as you do not need to take into account benefits or other costs; only the cost/hour or day. If in your case the farm owner is the only worker, then there is little to no cost unless you want to include the farmer's living expenses.
Manufacturing Overhead: Depending on the crop, you will need machines and technology to grow it. For instance, if theoretical farmer is harvesting wheat, calculate the cost of buying an irrigation system and renting machines used like crop combines. Use common sense. What tools(like shovels) would you need to make the farm and grow the crops? What will you need to harvest them?
Also, part of manufacturing overhead is land costs. Where will you buy your land from? Look up some for-sale farmland somewhere. Calculate how much its taxes will be per year. Wellington, a city in the state of Kansas, is one of the largest global producers of wheat so you'll find good relevant farmland there.
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Investment => Cost of production plus total money invested. From what I've gathered, you want to add all of the above(Manufacturing Overhead, Direct Labor, Direct Materials and the total will be your investment answer. It will have 2 parts: total cost so far and the cost if the theoretical farmer were to keep his operation going.
AS FOR PROBLEMS FACED BY THE THEORETICAL FARMER:
Dude, this is up to you. Look up droughts or other natural disasters that have happened in the past, maybe an invasive species that ate the specific crop your farmer grows invaded 7 years ago and killed off a year's worth of crop. Have like 2-4 problems and make up how he dealt with the problems.
If you need any more help, just e-mail me at my username at gmail dot com. I'm open for assistance.