About Lesson
Types of Farm Budgeting
- Partial Budgeting:
- Refers to estimating the outcome or returns for a part of the business.
- It may be used to estimate additional costs and returns from for example growing one hectare of hybrid maize in place of local
- It is simple, quick and easy.
- It provides a method for deciding how far expenses and yields should be increased of a particular enterprise.
- Changes in organization can be worked out without complete reworking of the whole plan.
- Enterprise budgeting:
- It is used to estimate required costs involved and expected returns from a particular enterprise.
- Several kinds of data are necessary for budgeting an enterprise. These are: Physical inputs data (Seed, fertilizer, insecticides, etc), Field output data (Yield per acre at different levels of inputs use) and prices data for inputs and outputs.
- Complete budgeting:
- It refers to making out a plan for the farm as a whole or for all decisions on one enterprise.
- Involves complete re-organization of the farm business.
- It considers all the crops, livestock producing methods and estimates costs and returns for the farm as a whole.