Private individuals are not in position to provide this package to the farmers. As their income rises, the phenomenon of backward sloping supply curve-relevant for the traditional agriculture will apply and the total agricultural output will fall. In the same Vein Mellor feels that whether zero value labour exists in traditional agriculture or not, withdraw of labour from the agricultural sector will result in the fall in agriculture output. Mellor is of the view that there is much under employment in traditional agriculture. According to Mellor, only when agriculture moves into this phase from the traditional phase that it can provide resources to the non- farm sector to grow. Schultz also gives an example from India to prove his point. It is only here that labour will be used up to a point where its marginal productivity is equal to zero. (d) agriculture does not use machinery due to availability of cheap labour. He does not define agriculture in the sense of equilibrium. The traditional inputs are also used in this phase. Two important points may be noted in Mellor’s steps for pushing a traditional agriculture into the 2nd phase. (ii) Encouragement of research. All of then start from the origin C in the direction of CO. Axis CO shows man-time at C, it is presumed that zero work is put in while leisure availed of is OC. Curves T to Z in diagram I show a part of the Iso-utility map. The new inputs do not involve the use of too much of capital, and are complementary rather than competitive with labour. Technological Dynamic Agriculture-High Capital Technology: Mellor has not discussed this phase in detail as he was mainly interested, like Schultz in transformation of a backward agriculture. Just as there is a set of indifference curves, there is also a set of iso utility curves, each higher curve indicating a higher level of satisfaction as compared with the one below it. Mellor divides agriculture to fall in one of the three phases. T. W. Schultz's book, "Transforming Traditional Agriculture," is an early and enlightening look at the rise of agriculture in developing nations around the world. This phase involves the use of new inputs with high marginal productivity. As each dose of additional goods and services have little utility due to rigid consumption pattern, it will progressively exchange for a smaller amount of leisure. These inputs increase the productivity per acre. Other articles where Transforming Traditional Agriculture is discussed: Theodore William Schultz: In Transforming Traditional Agriculture (1964), Schultz challenged the prevailing view, held by development economists, that farmers in developing countries were irrational in their unwillingness to innovate. Before we follow Mellor to find out the point of equilibrium of labour use on large farms we may refer to the three types of incomes levels as distinguished by Mellor. TOS4. Disclaimer Copyright, Share Your Knowledge The total output in the curve, however, is not shown purely in terms of the value of actual physical agricultural output. For instance, most of the farms are cultivated by the farmers with their family labour. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. With regard to all these steps Mellor points out that, no doubt, in the beginning large return technical innovations may be adopted even when some of these steps are not taken. This is negative income effect of rise in prices of agricultural products. Mellor has not discussed this phase in detail as he was mainly interested, like Schultz in transformation of a backward agriculture. This phase according to Mellor have the following important features: (a) Agriculture still occupies the most important position in the economy in terms of income generation, (b) Demand for agricultural products continues to grow due to increasing population, (c) Size of the farms continues to be small due to slow growth of the non-farm sector and. Efforts have to be made to made them acceptable to the farmers. This suggests redistribution of land and taxation on agricultural incomes as the methods to promote the use of more labour on the larger farms. Before publishing your Articles on this site, please read the following pages: 1. However due to the application of law of diminishing returns to labour, per capita productivity and income falls as more and more labour is used to produce more output. OY indicates this level in the diagram. This map is considered to the same for each farmer. This is what he calls positive substitution effect of rise in prices of agriculture production on the one hand, the pattern of consumption in a traditional society is tradition bound is rigid. For proving this point Mellor uses the following analytical tools: For Mellor, this curve shows the relationship between total output on a given farm and the amount of labour used to produce that output in other words it is total productivity curve in value terms with labour as the independent variable. According to Mellor, in a traditional agriculture, negative income effect is stronger then the positive substitution effect, so far as the labour use & therefore output is concerned.