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35. There are many factors that are being considered in the agricultural crop prodaction business such as availability of farm inputs, water and labor supply,

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35. There are many factors that are being considered in the agricultural crop prodaction business such as availability of farm inputs, water and labor supply, product demand, land suitability etc. Thas, what crop to plant on a newly-aequired agricultural land is always the first question the decision maker asks, Consider this typical case. A project has an afea of 2500 hectares located in the province of Pangasian where rainfall pantem belongs to type 1 (very distinct wet and dry season). Land classification data form tureau of soils reveals that the soul in the project area is mostly of dual land class (fitiod for rice and other crops). There is plenfy of water supply during wet scason but during the dry season there is considerable shortage of water available to the project site. Few years after, however, water sapply will not be a problem for the dry seasoe since an en-going major intigation project is expected to be completed in three years time. The area is under lease coetract foe 5 year and the agricultarist wants to maximiae profit within this lease period. Recognizing the scarcity of irrigation water during the dry seasee, he plans to grow profitable crops requiring less irrigation water than rice suah as com, sorghum and peanuts. During the wet season, he has not eether option bait to graw anly rice because the other corps coald not be grown pesfably during sach period. A study of farm input supply in the area shows that there will be limited anounts of fertilizer, insecticides and labor supply available for the next five years. Market demand for peanut is also limsited to 1500 toens per year increasing at the rate of 10% per year. Peabut yield is 3 toes bectare. he table below illustrates a summary of the supply of farm inguts and crop requirement for the next 5 years of dry seasen, The average izcome per hectare planted to rice, sorglam, peans, and con are known to be PSO00, P5500, P4800, and P4200, respectively. TABLE 1 Labor 35. There are many factors that are being considered in the agricultural crop prodaction business such as availability of farm inputs, water and labor supply, product demand, land suitability etc. Thas, what crop to plant on a newly-aequired agricultural land is always the first question the decision maker asks, Consider this typical case. A project has an afea of 2500 hectares located in the province of Pangasian where rainfall pantem belongs to type 1 (very distinct wet and dry season). Land classification data form tureau of soils reveals that the soul in the project area is mostly of dual land class (fitiod for rice and other crops). There is plenfy of water supply during wet scason but during the dry season there is considerable shortage of water available to the project site. Few years after, however, water sapply will not be a problem for the dry seasoe since an en-going major intigation project is expected to be completed in three years time. The area is under lease coetract foe 5 year and the agricultarist wants to maximiae profit within this lease period. Recognizing the scarcity of irrigation water during the dry seasee, he plans to grow profitable crops requiring less irrigation water than rice suah as com, sorghum and peanuts. During the wet season, he has not eether option bait to graw anly rice because the other corps coald not be grown pesfably during sach period. A study of farm input supply in the area shows that there will be limited anounts of fertilizer, insecticides and labor supply available for the next five years. Market demand for peanut is also limsited to 1500 toens per year increasing at the rate of 10% per year. Peabut yield is 3 toes bectare. he table below illustrates a summary of the supply of farm inguts and crop requirement for the next 5 years of dry seasen, The average izcome per hectare planted to rice, sorglam, peans, and con are known to be PSO00, P5500, P4800, and P4200, respectively. TABLE 1 Labor

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