Calculate the partial budget for the farmer who is switching from Rain fed Tomato to...
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Calculate the partial budget for the farmer who is switching from Rain fed Tomato to Irigated Tomato cultivation. Farmer currently farms 2 ha of Rain fed Tomato and planning to convert the whole 2 ha to Irrigated Tomato. To do this, farmer needs irrigation equipment valued at $60,000, a salvage value amounts to $6,000 and expected to last up to 10 years. The additional insurance premium cost amounts to $600 /annum. The Rain fed Tomato has a yield level of 0.50 tons/ac and Irrigated Tomato expected to yield 1.50 tons/ac. The levels of input used in the production of Tomato under respective situations are furnished below
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