-Budgeting assists the farm manager to select factors of production more wisely.
-As a planning tool, budgeting causes the farm manager to think more accurately, plan more carefully and completely.
-A well thought–out budget creates a good impression on people and also gives the impression of a careful scrutiny of one’s production and finances to the bankers.
-A budget is a money saver because it is cheaper to make mistakes on paper than in practice.
-Budgeting provides an excellent learning device for the student on how to organize and reorganize farms.
-Lending agencies use budgeting process as a basis for appraising the farm business of their clients.
-Budgeting helps a farm manager to determine when to borrow money and how much to borrow.
-Budgeting makes it possible for one to discover certain items and therefore costs, that could be easily dropped.
-It requires data of a less detailed nature and because of its simplicity and flexibility will always have a place in practical farm planning.
-It can also help a farmer in setting up repayment schedules of money borrowed..
jim items answered the question on October 18, 2018 at 10:46
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