Agriculture vs. Livestock: A Study of Kumoun Region of Uttarakhand

Abstract

This paper is an attempt to analyze the best investment opportunity for the farmers of the Kumoun region of Uttarakhand. The 2 most approachable activities i.e. agricultural activities and livestock-related activities have been considered for the same. It compares the investment and returns earned by the farmers through agricultural and livestock farming. The study also analyses the risk and return profile of such activities. This paper utilises the Net Present Value method to identify the best investment decision for farmers between these 2 farming activities. To determine the present value factor, the concept of the time value of money is utilised. The data was collected from primary and secondary sources. Primary data was collected with the help of a structured questionnaire and focused group discussion and secondary data was collected through various Government websites, magazines, etc. The study found that livestock activities are more beneficial for farmers in comparison to other agricultural activities. The study also found that the agricultural activities have a high-risk, fluctuating return profile due to climatic conditions, too much intermediary’s involvement, wild animal problems, lack of resources, lack of training facilities, uncertainties etc. The livestock activities have a low-risk, stable return profile due to several factors like one-time investment, easy quality maintenance, less involvement of the intermediaries in the selling process, certainty etc. The study has contributed to the development of the rural economy, return migrants, unemployed individuals, policy makers and researchers.

Keywords: Agriculture, Capital Budgeting, Livestock, Net Present Value

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