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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