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Question

Arrange the steps involved in whole farm planning and budgeting in systematic order.
A. Statement of objectives
B. Diagonosis of existing organisation
C. Preparation of plan
D. Identification of risks
E. Identification of enterprise to be included
Choose the correct answer from the options given below :

This question was previously asked in
CUET PG 2026 Agri-Business Management Question Paper (25-Mar-2026) (Shift 2)
The correct answer is
A, B, E, D, C

Farm Planning Budgeting Systematic Order

Whole farm planning and budgeting require a structured sequence to effectively manage agricultural operations. The process involves defining goals, assessing the current situation, selecting activities, identifying risks, and finally preparing a comprehensive plan.

Step-by-Step Farm Planning Process

The steps involved in whole farm planning and budgeting, when arranged systematically, are:

  • A. Statement of objectives: Clearly define what the farm aims to achieve. This sets the direction for all subsequent planning.
  • B. Diagnosis of existing organisation: Analyze the current state of the farm, including resources (land, labor, capital), management capabilities, and existing enterprises.
  • E. Identification of enterprises to be included: Based on objectives and the farm's diagnosis, choose the specific crops, livestock, or other activities to be part of the farm operation.
  • D. Identification of risks: Evaluate potential challenges and uncertainties associated with the chosen enterprises and the overall farm plan. This includes market risks, production risks, and financial risks.
  • C. Preparation of plan: Integrate all gathered information—objectives, current status, chosen enterprises, and risk assessment—into a detailed, actionable farm plan and budget.

Correct Sequence Confirmation

The logical and systematic order for whole farm planning and budgeting is therefore A, B, E, D, C.

This sequence aligns with the principles of strategic planning in agriculture, ensuring that decisions are goal-oriented, resource-aware, and risk-informed.

This order matches Option 3.

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