Why is budgeting useful in agriculture?

Correct answer: To plan input expenses and possible income

An agricultural budget estimates expenses on seeds, fertilisers, irrigation, labour and other inputs, along with the likely income from selling the crop. It helps a farmer use resources wisely, arrange cash when needed, and estimate profit or loss. Spending without keeping records is the opposite of budgeting. Exam tip: remember budgeting as advance planning of income and expenditure.