Horti-Business Management (2+0)

C. Own or paid out costs

i. Own costs

• The farmer does not actually pay for some of the inputs used by him, such as family labour for cultivation operations, farm yard manure from the farm, depreciation etc. The cost incurred towards such family or farm owned inputs is called own costs, for which imputed cost could be worked out based on market price for the corresponding input.
ii. Paid out costs

• The farmer purchases most of the inputs fertilizer, pesticides, hired casual labour from the market / other farmers for which he is actually making payments. Expenditure towards such inputs is called paid out costs.