Why is understanding local demand important for a farmer in agricultural production?

Correct answer: Crop selection, production quantity and sales planning can be aligned with demand

Knowing local demand helps a farmer choose crops that buyers need, produce an appropriate quantity, and plan the market and timing of sales. This improves the chance of selling the produce, can raise income, and reduces the risk of loss from unsold perishable goods. Soil fertility depends on nutrients and farm management, not on local demand. Exam tip: link demand with crop choice, marketing and income.