The farm household, a decision making unit, is broadly determined by the following on-farm conditions.
· Social and-economic conditions:
- Social setting
- Cultural setting
- Traditional practices
- Economic capacity
· Biophysical conditions
Social and economic conditions
These conditions have a major influence on decision making. Box 1 summarizes social and economic factors that influence decision making.
The social setting
Household composition and allocation of responsibilities to different family members plays an important role in farm management. Division of family chores by gender influences how resource allocation decisions are made. It should be emphasized that "gender" refers to age as well as sex. For example, studies have shown in some countries that women tend to prefer the planting of trees for fuelwood, fodder and fruit while men are said to prefer the production of timber that can be sold commercially. This has much to do with women's role in fodder and fuelwood collection_____ a role that can take them far away from the farm and require heavy labour. Also children are often involved in fuelwood gathering. These children and the elderly often play an important role in caring for livestock, or have other functions in the vicinity of the homestead
Cultural setting
The farm household is guided by the norms and values of its members Gender roles are determined by tradition. Division of roles and responsibilities among family members occurs naturally among men, women, productive youth, and the elderly.
Traditional food habits influence the introduction of crops with a potentially high revenue given local conditions. A example of this is the introduction of potatoes in Europe. Although the rural population suffered malnutrition and starvation, it was only two hundred years after their introduction that potatoes were produced on a massive scale.
Seemingly unproductive crops can have special functions, which make them indispensable for the household. Also, traditional cooking habits can influence fuelwood production. In northern India people sill use cow dung as fuel, although the supply of fuelwood has grown significantly. Due to the specific burning properties of these dung cakes, it is preferred over fuelwood in some areas.
Box 1: Social and Economic Conditions Household members · Composition (Age and gender) · Health · Education/skills Values · Religion · Gender role divisions Habits · Food habits · Cooking habits Indigenous knowledge · Specific crops · Pest control · Production calendar Lifestyle · Nomadic · Sedentary · Shifting cultivators · Hunters/gatherers Assets · Land stewardship (tenure status, areas and types) · Livestock and crop rights (ownership status, profit sharing) · Buildings and farm implements (house, barns, machinery, tools, etc.) Risk tolerance · Availability of savings · Need for food security · Subsistence vs. market orientation Debts and obligations · Institutional debts and obligations · Individual debts and obligations Off-farm employment and income · Dependence on off-farm income |
Traditional practices
Traditional production and management practices play a very important role in the farm household. When the farming system is sustainable this factor is no problem. It can, however, become a problem if, due to external factors, the continuation of the traditional system causes serious ecological degradation. These external factors can put pressure on natural resources due to growing population, climatical changes or transmigration. A very common case is degradation of near-by fuelwood resources. Due to over-exploitation or overgrazing, collection of fuelwood can become a difficult and time consuming activity, which usually has a negative effect on family welfare. Fuelwood collection will also detract from other productive duties, such as maintenance of the home garden.
If a farmer is required to change his farming system, it will be difficult, since, from his point of view, his traditional system has proven to be successful for generations. Farmers can be conservative in changing their cropping system, even though they fear for the sustainability of their present system. Economic factors play an important role in adopting new farming systems, since due to the decreasing revenues of his present system, risk tolerance is lowered.
Each farming system has its unique advantages, resulting in a special lifestyle of the farm family. They have adopted special skills in maintaining the system. Indigenous knowledge of this particular system can be very high. However, this indigenous knowledge can have its shortcomings when the system needs adjustment. Also a change of production system can result in a different lifestyle, which can dramatically affect the family. Shifting cultivators, and nomadic livestock farmers will have a natural resistance to becoming sedentary farmers. Also transmigrated farmers tend to pick up their old farming practices in new and different environments.
Economic conditions
A central factor affecting investment, production, and conservation decisions is the farmer's level of control over his land. A farmer with secure tenure is much more likely to think of long-term production and conservation activities than are sharecroppers or migrant laborers. The amount and types of land under stewardship of the farm household is critical. This determines their access to loans, the need for mechanization, the need to do off farm labor and the motivation to produce long-rotation products, such as trees. It also influences the extent of market oriented production.
Subsistence farmers typically have different aspirations from market-oriented or commercial farmers. These ambitions are reflected in their beliefs, attitudes, and labor investment patterns. Farmers also have varying risk tolerance based on their financial situation and food security. Subsistence farmers tend to have less tolerance for risk because they are closer to the borderline in terms of savings and liquid assets. Off-farm employment is attractive because of low risk. Also farmers with heavy debts and obligations cannot afford to risk their family welfare with untested technologies.
Biophysical conditions
Biophysical factors are, for the most part, beyond the direct control of the farm family. These factors, as described in Box 2, have a major influence on selection of crops.
Given the biophysical environment, farmers can influence the condition of their land by irrigation, fertilization, mitigation of extreme climatical conditions with shelterbelts or terracing of steep slopes. It should be emphasized that, when one limiting factor is removed, other factors become limiting factors for optimal production. Since all interventions consume money and/or labour, socioeconomic conditions can also become limiting for optimal production.
Within one farm, there can be considerable variation in the microclimate. Areas located near or around the household residence tend to get closer attention from women and receive more regular watering and fertilizing. These areas are more closely associated with family nutrition and service roles such as shade, rather than commercial objectives. The larger the distance between the homestead and the field, the less attention it will get. These areas tend to get used for low labour intensive production such as livestock grazing, cassava cultivation, timber and fuelwood production.
Based on the interaction between biophysical, social and economic factors, the farm household makes decisions. This brings us to the process of farm management.
Farm Household
