True-value accounting of human capital in sustainable agriculture: Rethinking value of agricultural production

Abstract

Traditional agricultural metrics focus strictly on yield and profit, masking the heavy human toll of farming. This paper introduces a specialised True Value Accounting (TVA) framework to track the true state of human capital in agriculture. Beyond simple labour output, this model accounts for farmer health, nutrition, time, workload, and skills. Crucially, it treats malnutrition, physical illness, and severe drudgery as direct capital depreciation rather than hidden externalities. By shifting from narrow crop metrics to human balance sheets, this framework provides a practical tool to maximise both farm income and family well-being.