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Income from wheat on a smallholder farm in India
The prompt
A farmer in Madhya Pradesh grows wheat on 2 hectares. The yield is 3.5 tonnes per hectare and the price received is INR 25,000 per tonne (an illustrative price). Costs per hectare are: seed INR 4,000, fertilizer INR 7,000, crop protection INR 3,000, irrigation and power INR 5,000, machinery hire INR 6,000 and hired labor INR 5,000. What is the farmer's net income from the crop? What if the yield rises by 20 percent with the same costs?
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