Socioeconomic Analysis of Different Categories of Farm in Selected Areas of Mymensingh, Bangladesh

Abstract

The purpose of this research was socioeconomicanalysis of farms using primary data in two villages of Mymensingh Sadar. A total of 60 farms including 20 small, 20 medium and 20 large were randomly selected for the study. Socioeconomic analysis showed that indebtedness was higher in large farms than those of small and medium ones. Large farms also engaged more in farm activities than others. All of the asset position, income expenditure and saving were positively related with farm size but non-farm income was negatively related. Analysis of balance sheet depicted that all the farms became able to generate a positive net worth which was the highest in large farms followed by small and medium ones in terms of percentage term. Income statement analysis showed that each of the farms was profitable and earned positive net profit at the end of the accounting year. Net profit had a positive relation with farm size. Results of ratio analysis expressed that none of the farms was fully financially strong. But maximum of seven ratios were favorable to large farms followed by small and medium farms. So, considering overall situation, large farms were relatively strong followed by small and medium farms in the study area. This study recommends for similar studies in other parts of country to develop a benchmark for comparison which is almost absent in present situation of Bangladesh.