An Actual Proof of Organization Equilibrium in Group Farming

In addition to the organized utilization of agricultural machinery and facilities, work with their utilization is considered to include two cases: a) the work is owned by individual managements and b) the other is conducted in commission to other individual managements or agricultural machinery banks. Evaluated cost of these alternative opportunities (estimated value of inducements in alternative opportunities) is called as alternative inducements, the former case being defined as alternative inducement-1 and the latter as alternative inducement-2. Factors for organization in association with providing paddy fields (contributions) of the member farm households to the organization include the rent (inducements) received from the organization and that of lending owner cultivators to the individual cultivation of paddy or to individuals other than the organization. Estimated values of contributions in these alternative opportunities are called as alternative contributions. In order to continue the group cooperation of member farm households, their returns (inducements) obtained from the group in recompense for their work in association with group activities are needed to succeed estimated values of contributions obtainable by providing the same labor to other utilization opportunities, I.e., alternative contributions. When the alternative contributions are greater, the member farm householders will be dissatisfied with the inducements given by the organization. In the inspected cases, the actual condition of ”inducements > alternative contributions” or ”contributions < alternative inducements” is found in each case, and thus these organizations are maintained by the fact that the member farm households obtain benefits from the organization.

Group farming

organization equilibrium

contribution

inducement