Economic and Financial Analysis: The Farmer's Point of View

Abstract

The purpose of this chapter is twofold. First, to introduce the reader to some simple basic economic concepts used in financial analysis and project evaluation, and second to bring together in a new analytical framework, significant pieces of information from recently published research findings on the economics of kenaf production. The BIOKENAF research and experimentation project (QLK CT2001 01729, 2003-2007), which is the most relevant recent scientific work from the point of view of geography and approach, has provided most of the basic material for this chapter. The findings of BIOKENAF are updated and compared with other related bibliographical evidence, concentrating on the farmer's point of view. This chapter will objectively re-examine the financial implications of kenaf production and hopefully guide the reader on how to make his own budgets and set up business plans for his farm. © Springer-Verlag London 2013.