Concepts and methods for estimating incomes in village studies in semi-arid tropical India

This paper describes concepts and methods used in the International Crop Research Institute for the Semi-Arid Tropics"s Village Level Studies (VLS) to estimate income in the semi-arid tropics of India. First, the paper outlines a conceptual framework for income estimation based on five definitions of farm income: household income, gross farm income, total farm expenses, net farm income, and net returns to capital and management. Next, factors complicating income estimation are reviewed. Among them are the lack of daily transaction records, the non-monetary nature of many farm transactions, varying irrigation costs, intercropping, and complicated tenancy and institutional arrangements. Finally, procedures are presented for estimating the costs of seed, labor, machinery, fertilizers and pesticides, land revenue and taxes, livestock inputs, crop and livestock outputs, depreciation, and other expenses. Appended are a list of 11 references (1975-80), a list of definitions used in the VLS income analysis, and a detailed description of data sources.