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close this bookResource Management for Upland Areas in Southeast Asia - An Information Kit (IIRR, 1995, 207 p.)
close this folder4. Diagnostic methods and tools
View the documentParticipatory appraisal methods
View the documentIntegrated land-use planning in upland areas
View the documentFarm househoId profile
View the documentGender analysis
View the documentCollecting information on crops
View the documentBuilding on indigenous knowledge

Farm househoId profile

The household is the basic unit of a community. Looking at the household unit, one can do a true natural resource accounting. An inventory of goals and aspirations of household members can also reveal much. The household is a source of labor, skills, cash and other resources. When monetized, the value of consumption at the household level can provide information about community livelihoods and, when analyzed at a community level, can indicate how much the community saves or spends. The farm household economy includes income, as well as all assets and liabilities.

Developing a farm household profile involves a process of identifying labor, goods and income shared by a group of people living in one house and determining the adequacy of resources in relation to their needs. Among other things, a farm household profile looks at the incomes and expenses of individual household members by gender so that the whole family decides where and on what to invest. The profile should also consider other critical factors, such as educational level (see also checklist in General syslems overview). It also involves gender and generational analysis in terms of decision-making, contributions, influences and expenses.

A farm household profile can be developed through the use of three simple tools: a farm household inventory (balance sheet), a farm household gross income statement and a farm household budget. (Facie of these tools is explained below.) All members of the farm household should be involved in the use of these tools in order to ensure that each of their different perspectives is included and to ensure joint decision-making. Before beginning with these three tools, identify each member of the household by number, age and gender. Also, identify labor utilization of each of the household members—who does what, when, where. (See also Gender analysis.)

Farm household inventory (balance sheet)

A farm household inventory (or balance sheet) shows the net worth of the farm household. The total value of liabilities (e.g., debts, loans, etc.) is subtracted from the total value of assets (e.g., land, livestock, saving, etc.)

1. List farm assets.

· land (value of landholding)
· farm buildings
· farm animals
· farm equipment and tools
· stored crops
· other farm supplies stored on the farm (e.g., fertilizer, etc.)

2. List household assets.

· house
· vehicle
· furniture and other appliances
· savings

3. Estimate the current market value for each asset item.
4. List farm and household liabilities.

· short-term loans
· mortgages and other long-term loans

5 Subtract the value of the total liabilities from the total assets to provide the net worth of
the household.

Example:

Farm household inventory (balance sheet)

ASSETS
A. Farm assets


Quantity

Estimated current market value per unit

Total amount

Land (ha)

1

10,000

10,000

Farm buildings




Farm sheds

2

5,000

10,000

Farm animals




Carabaos

2

6,000

12,000

Goats

3

1,000

3,000

Farm equipment




Plows

2

1,500

3,000

Harrows

2

700

1,400

Stored crops




Corn (kg)

200

5

1,000

Total farm assets



40,400

B. Household assets




House

1

50,000

50,000

Furniture

-

-

12,000

Savings

-

-

1,000

Total household assets



63,000

TOTAL ASSETS



103,400

LIABILITIES

Short-term loans

10,000

Long-term loans

30,000

TOTAL LIABILITIES

40,000

CURRENT NET WORTH(total assets less total liabilities)

63,400

Annual farm household gross income statement

This tool shows the sources and amounts of the farm household income. It is a usefill tool for households to be able to know how important are the various income-generating activities to the total income of the house.

1. List the value of sales of crops and livestock for the year.

· Quantity the number of pieces or kilos sold per item
· Estimate the current market price per unit for each item.

2. List other income sources.

3. Add the income items from the farm and other sources to come up with annual farm household gross income. In order to calculate the net income, the various expenses for each of the income sources should be subtracted. These are the cost of production (e.g., fertilizer, feeds, seeds, etc.).

Annual farm household budget

A farm household budget serves many purposes: 1 ) it allows the family to compare their expenditures, based on their income; 2) it allows them to discuss and agree upon what items or activities they spend their money on; and 3) it allows them to set limits (on a per-month and per-year basis) for their amount of spending. For a rural development worker, this information can be very helpful to determine who might receive specific technical assistance (given the labor profile) and the capability of the household to venture into new activities and to assume new risks. l. Invite the members of the household to list the items they spend their income. 2. List average monthly expenses. 3. Multiply the monthly expenses by 12 months to determine the annual amount spent on each item. 4. Sum the annual expense for each item to come up with the total annual farm household budget.

Example: Annual farm household income statement

INCOME FROM CROP/LIVESTOCK


Unit

Current market price per unit

Total amount

1. Fruit




-Pomelo (pcs)

200

5

1,000

-Papaya (pcs)

1,000

2

2,000

2. Vegetables




-Cabbage (kg)

1,000

4

4,000

-Sweet peas (kg)

1,000

7

7,000

3. Livestock




-Sale of goat

1

1,000

1,000

Subtotal



15,000

OTHER INCOME




1. Sale of firewood

500

10

5,000

2. Remittances

-


4,000

3. Hired labor (days)

10

50

500

Subtotal



9,500

Total annual farm household gross income



24,500

Example:

Annual farm household budget

1. Food

1,200 x 12

14,400

2. Gas

50 x 12

600

3. Soap

50 x 12

600

4. Education

150 x 12

1,800

5. Transport

20 x 12

240

6. Medicines


1,500

7. Tobacco

200 x 12

2,400

8. Alcoholic beverages

100 x 12

1,200

9. Gambling and leisure

50 x 12

600

10. Others


500

TOTAL


23,840