Farm planning

Firm planning is deliberate (of]hgfj4 _ process of thinking the organized foresight and vision
based on fact and past experience that is needed for intelligent action on the farm.
Simply it is program of total farm activity of farmer drawn up in advance to achieve desired results. It is
deciding in advance, production management problems like what to produce, how to produce, when to
produce financial management problems like how to burrow, how much to burrow, when to burrow,
where to burrow and marketing management problems like where, when, how to buy and sell. It is
characterized as process of thinking before doing.
Types of farm plan
1. Simple farm planning
It implies the planning for minor changes or for particular enterprises
It is adopted for particular enterprises or parts of land
It is very simple and easy to implement
2. Complete farm planning
It implies the planning for major changes in existing organization
It is adopted for whole enterprises
It is little bit complex and difficult to implement than simple firm planning
Characteristics of Good firm plan
Following are characteristics of good firm plan
1. It is should be written.
2. It should be flexible.
3. It should be simple and easy to understood
4. It should provide for efficient use of resources.
5. Farm plan should have balanced combination of enterprises. Such combination in turn ensures,
a. Production of food, cash and fodder crops.
b. Maintain soil fertility.
c. Increase in income.
d. Improve distribution and use of labor, power and water requirement throughout the year.
6. It should avoid too risky enterprises
7. It should consider the goals, knowledge, training and experience of the farmers, besides their attitude
towards risk.
8. It should facilitate for efficient marketing of farm product.
9. Provision for borrowing, using and repayment of credit.
10. It should take into account up to date technology
11. It should provide the borrowing, using and repaying the credit

Why firm planning is necessary

Farm planning enables the farmer to achieve his objectives (Profit maximization or cost minimization) in
a more organized manner. It also helps in the analysis of existing resources and their allocation for
achieving higher resource use efficiency, farm income and farm family welfare
1. To choose different firm activity which are suited to the given firm conditions
2. To look into the future and decide on suitable course of action
3. To select appropriate enterprise combination that results in the better use of resources
4. To help the farmers in timing the various jobs and operation for smooth conduct of operation without
competition
5. To avoid wastages that occurs in the resource use
6. To provide guidance and flexibility to the farmers for ensuring better use and growth of the farm
7. To provide allocation of resources for producing the requisite product for marketing and household
consumption
Limitation of the farm planning
1. It is time consuming and expensive
2. It encourage false sense of security against risk
3. Forecasting methods, statistical data supplied etc are all inaccurate and the results of operations
research cannot be applied to all cases that come under firm planning
4. The record provide adequate information for planning process, but farm record are not given
importance by the farmers in developing countries, though some farm records are maintained by the
farmers but they are inadequate and inaccurate data
5. Pertinent information on farms particularly in respect of climate, water supply and markets etc is not
found in the required form