Question

Arrange the steps involved in whole farm planning and budgeting in systematic order.
A. Statement of objectives
B. Diagnosis of existing organisation
C. Preparation of plan
D. Identification of risks
E. Identification of enterprise to be included

• A. C, A, B, E, D
• B. A, B, C, D, E
• C. A, B, E, D, C
• D. D, E, A, B, C

Hint:

Planning always starts with "Objectives" and ends with the "Final Plan/Budget." Identifying what you have (Diagnosis) must come before deciding what you want to add (Enterprise Identification).

Answer 1

The Correct Option is C

Concept: Farm planning is a decision-making process where a farmer chooses between alternatives to organize the farm business for maximum profit or utility. Budgeting is the physical and financial expression of that plan.

Step 1: Initial Phase.
The process must begin with a clear Statement of Objectives (A)—what does the farmer want to achieve? This is followed by a Diagnosis of existing organisation (B) to identify current strengths and constraints.

Step 2: Design Phase.
Once the current status is known, the farmer must perform the Identification of enterprises to be included (E) (e.g., dairy, poultry, or specific crops) and the Identification of risks (D) associated with those choices.

Step 3: Final Phase.
The final step is the actual Preparation of the plan (C), which integrates all the selected enterprises, resources, and risk-mitigation strategies into a workable budget.

Step 4: Conclusion.
The logical flow is A $\rightarrow$ B $\rightarrow$ E $\rightarrow$ D $\rightarrow$ C.