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 Farm Yard Manure: is evaluated at the rates prevailing in the village. Chemical Fertilizers and pesticides are charged at the markets costs. In organic farming, seed treatment costs are included under Manure head in the cost table.  Seed: even homegrown seeds are charges at the prevailing market price. In the village at the time of sowing. Own bullock/animal labour is valued on the basis of its cost of maintenance which include (a )cost of green and dry fodder, (b) cost of drugs, (c) depreciation on animal and cattle sheds, (d) cost on labour upkeep of animals, and (f) other miscellaneous expenses, if any, all such costs are not included in the study. As there was not any exact data available from farmers and also these cost form part of non-farm uses as most of the farming in Punjab is mechanized and there is hardly any bullock labor involved. Hence own bullock labor costs were ignored It was also seen with many respondents that family labour had helped them in many operations. But on many occasions it was for very little time and was not quantifiable. Moreover, after most of the interviews it was observed that there was no opportunity cost involved for such work. Thus, I have ignored to calculate the imputed value of Family labour in order to avoid the unnecessary calculation errors as it may most often lead to overvaluation of costs. Also while interviewing it was found out that there were no records with the farmer. Moreover he didn’t recall the work done by family labour. As in many cases where the specific work was done by the family labour that wages had been allotted under the Cost item Hired Labour. For such specific work Family labour was charged at the ongoing market wage rates.  Hired labour (including Human, Animal, and Machinery): hired labourers for the specific work are charged at the market rates only. Most of the labourers are also attached labourers. Their costs are included in the hired labour itself. Their labour costs are evaluated as the time the work the laborer had spent in farm operation relating to wheat like ploughing, Harrowing, sprinkling water, pesticides, fertilizer, Weeding (Goodai), etc. Excluding harvesting and threshing these are included under Contract charges. Variable Costs: Fixed Costs: with all the respondents there was no land taxes paid. Depreciation was charged @ 5 % p.a., which is a standard rate for agriculture equipments and machinery. Usually most of the implements like plough, harrow, etc their usage is linked with the different crops. Hence while calculating Fixed costs per acre we have just divided the Total Depreciation amount by the acreage under wheat only. In order to work out the economics of organic farming vis-à-vis chemical farming, the cost of production of different costs have been worked out by using standard cost concepts. The present study pays more emphasis for calculations of actual paid-out costs only. Thus may imputation costs like family labour, rental value of owned land, interest on fixed capital have been ignored, etc. The computation of cost of production was done on the basis of the input and the output prices prevailing in the study area during the actual expenditure incurred and output sold respectively. Imputation Procedures: In our study our total Costs just contains COST A1 only. We have not calculated COST A2, COST B and COST C due to reasons mentioned below and subsequent pages.  Rent paid for leased-in-land.  Interest on borrowed/working capital  Market Costs (Selling and Distribution expenses):  Contract charges: as of now majority of the farmers outsource the Harvesting & threshing operations.  Irrigation Costs: these refer to water and power charges  Maintenance and repair costs.  Fuel charges.  Chemical fertilizers and pesticides, insecticides and chemicals used for seed treatment are included under fertilizers in the cost table  Manure (owned & purchased)  Seeds Cost (both home grown and purchased)

COST A₁=Cost of seeds, manure, fertilizers, pesticides and other chemicals used, hired human labour, hired machinery, fuel, harvesting and threshing (Contarct Charges), depreciation and repairs on farm tools and machinery, maintenance, interest on working capital.

COST A₂=COST A₁ + rent paid for leased in land

COST B= COST A₂ + imputed rental value of owned land less rent paid on leased in land + interest on fixed capital

COST C= COST C + imputed value of family labour.