Introduction

• A farm plan is a program of the total farm activity of a farmer drawn up in advance.
• The expression of such a farm plan in monetary terms by estimation of receipts, expenses and net income, is called budgeting.
• Farm budgeting is a process of estimating costs, returns and net profit of a farm or a particular enterprise.

Application of Farm Budgeting

1. Application prior to the crop season
2. Application during the farm year
3. Application at the end of season