Farm Budgeting and Financial Management - JSS1 Agricultural science Past Questions and Answers - page 1
What is the primary purpose of farm budgeting in agriculture?
Maximising resource wastage
Optimising resource allocation and financial planning
Ignoring financial considerations
Minimising crop yield
Which of the following is a component of a farm budget?
Number of rainfall days
Types of farm animals
Seed varieties
Income and expenditure projections
What is the significance of a practical farm budgeting exercise for farmers?
It has no impact on farm management
It helps farmers visualise crop growth
It provides a realistic financial plan and aids decision-making
It discourages financial planning
Why is financial management important in agriculture?
It encourages resource wastage
It helps farmers accumulate debts
It ensures effective use of financial resources and sustainability
It disregards the economic aspects of farming
In farm budgeting, what does the term "expenditure" refer to?
Income generated from farming activities
Resources allocated for farm activities, including costs and expenses
The total profit earned by the farm
Financial losses incurred during the budgeting process
What role does a farm budget play in decision-making for farmers?
It hinders informed choices
It serves as an irrelevant document
It provides a basis for making informed financial and operational decisions
It promotes random resource allocation
Which of the following is an example of an income component in a farm budget?
Purchase of seeds
Costs of irrigation
Sale of harvested crops
Maintenance of farm equipment
What does financial management involve in the context of agriculture?
Ignoring financial considerations
Effective planning, control, and monitoring of financial resources
Accumulating debts without repayment
Disregarding the economic aspects of farming
Why is it essential for farmers to consider both income and expenditure in a farm budget?
To discourage financial planning
To accumulate debts
To ensure a balanced and sustainable financial plan
To promote resource wastage
How does practical farm budgeting contribute to the overall success of farming operations?
By promoting random decision-making
By discouraging financial planning
By providing a realistic financial plan for effective resource management
By increasing resource wastage