Costs and returns of soybean for member and non-member farmers of FPO

Abstract

This study compares the physical inputs, costs, and profitability of soybean cultivation between member and non-member farmers of a Farmer Producer Organization (FPO) Marathwada region of Maharashtra. It reveals that member farmers generally use more efficient resource management practices, including higher male hired labour, greater use of machinery, and lower seed input, which contributes to higher yields (19.46 quintals) compared to non-members (17.72 quintals). While non-members incur higher costs for inputs such as seeds, fertilizers, and labour, member farmers benefit from subsidized resources, lower overall cultivation costs, and enhanced financial support through the cooperative. The profitability analysis shows that member farmers achieve higher gross returns (?90,925.45), net income (?31,688.09), and more efficient output-input ratios (1.53) compared to non-members (?79,788.99 and ?18,068.30, respectively), underscoring the economic advantages of cooperative membership. The findings suggest that cooperative membership significantly improves input use efficiency, reduces production costs, and enhances profitability.