Sunday, 9 December 2012

Agriculture notes prepared by IAS Topper for all agriculture based competitive exams-Agricutural Economics-Farm planning

Farm planning

“Planning of production and marking operations consciously with a discriminating intellect in respect of what, how much and how to produce and when and where to buy and sell”. It is the deliberate and conscious effort on the part of farmer to think about farm programmes in advance and adjust them according to new knowledge on technological developments, changes in physical and economic situations, price structure etc.
Farm Plan:
“Farm plan is a programme of total farm activity of a farmer drawn up in advance”. A farm plan should show that crop to be grown, the practice to be followed in their production, combination of other enterprises etc.
Advantages of farm management
  • Farm Income: Careful planning by taking into account the alternate forms of inputs and resources, farm income can appreciably be increased.
  • Organizational change: farm management will bring change in the organization of farm so as to make it as a viable unit. In broad sense, it may mean any contemplated change in the method or practices followed on farm
  • Educational process: To make a better farm plan, farmer has to be aware of new technology, price and supply of farm inputs etc. Therefore, farm planning provides ample opportunity to the farmer to be aware of the farm production programme well in advance.
Objectives of farm planning
Largely it is to improve the standard of living of a farmer. It can be achieved through maximizing the net income of the farmer through improved resource use planning. Thereby, the annual net income can be increased on a sustained manner over a long period of time.
Characteristics of a good farm plan
  • Should provide for efficient use of farm resources like land, labour, power and equipments
  • Plan should have balanced combinations of enterprises i.e.
    • Provides for given minimum production of different food, cash and fodder crops
    • Improve distribution and use of labour, power and water requirement through out the year
    • Maintain and improve soil fertility
    • Raise and stabilize farm earnings
  • Avoid excessive risks
  • Provide flexibility
  • Utilize farmer’s knowledge, training and experience and take account of the farmer’s likes and dislikes
  • Give considerations to efficient marketing
  • Provide programme of obtaining, using and repaying the credit
  • Provide for the se of up to date modern agricultural methods and practices
Farm budgeting
“Expression of a farm plan in monetary term as estimation of respects, expenses and net income is called budgeting”. Farm planning and budgeting go side by side because budget helps to evaluate alternative plans and select the one that is most suitable. Farm budgeting can be applied
  • Prior to crop season to avoid any mistake during crop season
  • During farming year it can be used as a yardstick to guide farmer in right track
  • End of crop season to make the future plans more effective by correcting weak points in the farm plan

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