The sample of 20 respondents was chosen for this study. Punjab, the state where Green revolution took place has very few farmers who practice Organic farming. Hence, effort was made to contact and meet as many farmers practicing organic farmers. As Kheti-Virasat, for last 7 years has been encouraging Organic Farming in different parts of Punjab. It has so far mainly been successful in Nabha Block. Therefore, as many as 13 farmers practicing organic farming were interviewed in Nabha Block. 2 were interviewed in Bathinda district, 1 in Nakodar Block of Jalandhar, 2 in Anandpur Sahib District and 1 in Lehargaga Block and 1 in Munnak village of Sangrur District. Average land holding size of the entire sample is Around 80% of the farmers were big farmers. None of the farmers interviewed leased in land, although Lease-in rate in Nabha Block of Patiala was Rs. 18,000-20,000, Majority of the Farmers have converted their some part of land to practice organic Farming during last 6 years. i.e. why as shown in the next page that 60% of respondents our practicing both organic Farming and chemical farming. The median year for which the farmers who have converted some part of their land for organic farming is 2003. It is only 3 farmers who have been practicing organic from more than past 10 years. Sample Description Rent paid for leased-in-land: Since none of the farmers had leased in land. There is no such component, while calculating the costs. Imputed Rental Value of the own land under cultivation is not taken into account. Since it is not paid out costs and none of the farmers in the sample have leased out land. Moreover if imputed rental value of own land is under consideration then the profits actually don’t exist, I may even say that doing farming on the leased in land may not be profitable at all. Some of the inputs in farm production are taken from relatives or farms like cultivator or Suhaaga for a day or two. Moreover many farmers report that since they too lend their equipments to friends, neighbors, etc for which they don’t charge. Since there is mutual understanding among the villagers and no paid out costs involved. hence no costs are taken into account. While only 1 farmer had hired machinery i.e. harrower for 1-2 days. For which Rs. 200 had been paid. This cost was included under hired labour overhead in order to avid additional heading. Kind Payments: Payment for some of the farmer is made in kind especially in organic Farming. Like for eg. For making "Jeev-Amrit" we need a bucket of Cow Urine, Cow Dung, 2 kg of Jaggery, 2 kg of Gram flour and 1 kg Mud. Now here Jaggery and Gram flour are easily available. So we charge them under heading of Manure Costs, while Cow urine and Cow Dung are not bought-sold in most of the markets of the villages. But as we know most of the farmers in the Punjab have their own livestock like cows and buffalo. They also have dairy business. So for them cow dung and Coe urine is waste and don’t have opportunity cost, so I Have in my study ignored and have not included them under various costs. The rate of interest of fixed capital has not been taken into account for this study as; it was difficulty in getting purchase prices of all the equipments and machinery by the Farmer. Interest on Working Capital: Punjab has a well organised credit market. Even many of the villages have co-operative Banks. Where Rate of Interest for fulfilling the Working Capital needs is just 8-10%. Majority of the Farmers Avail this short term (4-6 months) loan facility to fulfill their working Capital needs. There are majority of the farmers who do not avail this loan facility. Thus as per the standard rule interest on working capital both owned and borrowed is charged @ 10% per annum. Thus for on season effective rate of interest turns out to 5%. Contract Charges: it has been found out that all the farmers had outsourced their harvesting and threshing work to Contractor who either does the entire task using machinery or through hand. He charges for harvesting and threshing on per acre basis. There is not much difference in the rates among different villages. Market Costs: these include Expenses on transporting the produce to Mandi, Mandi Charges, commission to agents, selling expenses like packaging, cleaning and other labor costs involved in such activities. Maintenance and repair costs: this is charged on basis of expenses incurred on maintenance of equipments & machinery and minor repairs. Fuel costs: for calculating fuel costs I have included all diesel costs spent during the field operations, while the fuel cost incurred after taking produce to market place is included in market costs Irrigation Costs: it was also found out that since all the respondents had access to their own tube wells or canals which fulfilled their requirements. There are no water charges. Moreover during the Rabi Season 2006-07 there was no power charges levied on farmer. Hence, irrigation charges are nil. But 1 farmer in the sample had used tractor to get water from the tube well. So the cost incurred in the form of diesel for operating tractor was included in fuel costs.