Agriculture Topic
Farm Budgeting
- Read notes
- Flashcards
- Quiz
- Confident
Study focus - 3 things
- A farm budget estimates income, expenses, and profit before farm activities start
- Budgets help farmers plan what to buy, when to plant, and whether the farm activity is worth it
- Profit is income minus expenses
Section 1Purpose of a farm budget
A farm budget is a plan for money on a farm. It estimates what the farmer expects to earn and what the farmer expects to spend. Here's the trick: a budget helps the farmer make decisions before money is wasted.
Section 2Income
Income is money earned from selling farm products. A farmer may earn income from crops, livestock, eggs, milk, seedlings, or compost. In Jamaica, a farmer might budget income from selling callaloo, peppers, or chickens at a local market.
Section 3Expenses
Expenses are the costs of producing and selling farm products. Examples include seeds, fertiliser, tools, feed, labour, transport, water, packaging, and pest control. Watch out: small expenses still count because they reduce profit.
Section 4Planning activities
A budget helps the farmer decide crop size, planting dates, labour needs, and supplies. It can also show whether a project may make a profit or loss. In plain words, budgeting turns farm ideas into a plan.
Examples
A farmer expects J$25,000 income and J$18,000 expenses from a vegetable crop. Find the expected profit.
Profit = income - expenses = 25,000 - 18,000 = J$7,000.
A farmer in St. Elizabeth budgets for tomato seedlings, fertiliser, transport, and market sales. Why is this useful before planting?
It helps the farmer estimate costs and income, plan supplies, and decide whether the tomato crop is likely to make a profit.
Now let's water it
Session runs notes to flashcards to quiz back-to-back.