Resource allocation in sabah rice farming

Abstract

This study was based on data obtained from a random sample of farms in Kota Marudu, Kota Belud and Tuaran districts. The main objective of the study was to analyze the 1978 economic organization of farms in the area with respect to three input categories: Land, human labour and current expenditures. It vas hypothised that farm resources were not efficiently used. The results of the study indicate that, by using the then present method of production, resources had not been utilized in the optimum combination. Too little current expenditures had been incurred and too much human labour had been utilized. Fara size should be increased, and necessary changes in the input combination need to be made, if more profitable farm operation is desired. It was concluded that the optimum input combination to attain maximum profit should not be recommended, as long as there is no possibility of finding other uses for the released farm labour. Hence, based on this conclusion, the importance of balanced economic growth, implicating the efficient use of resources, in both secters of agriculture and industry is phasized.