Sometimes, the research findings prove ineffective because these are not based upon regional variations. As, on larger farms, income is likely to be more than what is needed to meet the requirements of a rigid consumption pattern, the amount produced on such farms i.e. However due to the application of law of diminishing returns to labour, per capita productivity and income falls as more and more labour is used to produce more output. At O, all man-time has been used and there is no leisure left. Secondly, in this phase, the inputs are not highly capital using. These features, result in low productivity and low income in these farms. the amount of labour to be used is not to be disguised. As land is limited and so is the capital, additional labour force is the only source of increasing income in such an agriculture. The inputs suggested to be used are low capital intensive and are complementary to labour. According to Mellor, only when agriculture moves into this phase from the traditional phase that it can provide resources to the non- farm sector to grow. The phases are: 1. Technological Dynamic Agriculture-High Capital Technology: Mellor has not discussed this phase in detail as he was mainly interested, like Schultz in transformation of a backward agriculture. Agriculture, Development of Agriculture, Agriculture Management. This suggests redistribution of land and taxation on agricultural incomes as the methods to promote the use of more labour on the larger farms. This is because all efforts should be made by the farmers to get the maximum output from land. Technological changes will follow only the institutional reforms. Welcome to EconomicsDiscussion.net! The heavy machinery will be developed in the expanding non-farm sector. And it cannot move out of the traditional rut by itself. Other articles where Transforming Traditional Agriculture is discussed: Theodore William Schultz: In Transforming Traditional Agriculture (1964), Schultz challenged the prevailing view, held by development economists, that farmers in developing countries were irrational in their unwillingness to innovate. What Schultz essentially argues in this book is that agriculture can be broken down into two distinct types. 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. Before publishing your Articles on this site, please read the following pages: 1. 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. The traditional inputs are also used in this phase. This is mainly because of uneven distribution of land in the society with traditional agriculture. It is a level which indicates changing standard of living found in dynamic, non-traditional agricultural societies. These are (a) level which ensures only the minimum food, clothing shelter and other essentials for maintaining human life. The main input, applies in such an agriculture. From the above analysis. Schultz also gives an example from India to prove his point. 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. one likes to substitute labour for leisure. According to Mellor, in a traditional agriculture. Share Your Word File According to Mellor, the pattern of consump­tion in a traditional agricultural is rather rigid of a rigid. For this the Government has to devise a policy aimed at the “complex but potential productivity process of technological change”. All of then start from the origin C in the direction of CO. Axis CO shows man-time at C, it is presumed that zero work is put in while leisure availed of is OC. OY should indicate the maximum level of income which a farmer can aspire for. This is because withdrawal of labour will give a higher per capital income to the people who are still left in the agricultural sector. Private individuals are not in position to provide this package to the farmers. Mellor emphasises scientific research at regional level. In other words, each unit of leisure added (or work put it) will be progressively exchanged with larger dose of goods and services. When compared with that in high income countries. There are many supporting services which have to be developed if the agricultural production proper is to increase. According, to him resources are optimally allocated on these farms. He further points out that all these steps have to be taken by the Government itself. In the diagram production possibility curves A&B pertain to a subsistence or below subsistence farm. The farms are generally small in size and the word force per farm is higher on these farm. On the one hand, there is a temptation to produce more, i.e. This will be obviously a point where the given production possibility of a farm is just tangent to one of the iso-utility curves. The institution includes those distributing modern inputs, those facilitating marketing of agricultural products those engaged in processing agriculture crops. It is rather in terms of the value of combination of agriculture output and the non-agricultural goods and services that are exchanged for agricultural goods at each level of labour use. This is one of the most important measures that Mellor suggests for pushing a traditional agriculture into the 2nd phase of development. This according to Schultz, showed that marginal productivity of labour was not zero. This phase according to Mellor have the following important features: (a) Agriculture still occupies the most important position in the economy in terms of income generation, (b) Demand for agricultural products continues to grow due to increasing population, (c) Size of the farms continues to be small due to slow growth of the non-farm sector and.

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