Farm management involves successfully integrating the factors of production land, labor, and financial resources to realize an economically viable, ecologically sound, and socially responsible farm business.


Helps in improving the profitability of organisations; Increases the overall value of the firms or organisations; Provides economic stability; Encourages employees to save money, which helps them in personal financial planning.

Frequently Asked Questions

What is risk management in agribusiness?

Risk management involves choosing among alternatives that reduce financial effects that can result from such uncertainties. Five general types of risk are described here: production risk, price or market risk, financial risk, institutional risk, and human or personal risk.

What are the risk factors in agriculture?

According to Baquet et al. (1997), there are five distinct risk factors in agriculture: productive risk, marketing risk, financial risk, human risk, and environmental risk. Each of these plays a role in the farmer’s decision, but the relative importance of each factor has not been analyzed in recent literature.

What is meant by financial management?

Financial management is strategic planning, organising, directing, and controlling of financial undertakings in an organisation or an institute. It also includes applying management principles to the financial assets of an organisation, while also playing an important part in fiscal management.

What is agriculture finance?

Agricultural Finance – Financing of agriculture-related activities, from production to market. Not all agricultural finance is rural, and not all rural finance is agricultural. Yet financial service providers offering rural, micro- or agricultural finance often have overlapping objectives and opportunities.

What is financial management example?

Financial management is defined as dealing with and analyzing money and investments for a person or a business to help make business decisions. An example of financial management is the work done by an accounting department for a company.

What is financial management and its objectives?

Financial Management refers to the process of efficient acquisition, utilization, and distribution of finance and then disposal of surplus or profit to run the organization smoothly.

What are the 3 types of financial management?

Financial Management takes financial decisions under three main categories namely, investment decisions, financing decisions and dividend decisions.

What is financial management PDF?

Financial management “is the operational activity of a business that is responsible for obtaining and effectively utilising the funds necessary for efficient operations”.

What is the importance of finance in agriculture?

1) Agril finance assumes vital and significant importance in the agro – socio – economic development of the country both at macro and micro level. 2) It is playing a catalytic role in strengthening the farm business and augmenting the productivity of scarce resources.

What is the scope of financial management?

The 5 A’s scope of financial management are Anticipation, Acquisition, Allocation, Appropriation, and Assessments of funds. As an important part of overall management, the scope of financial management mainly covers planning, raising, controlling, and administration of funds used in the business.

What is agricultural financial institution?

The purpose of agricultural or land Banks is to help in the development of agriculture with the supply of credit. It requires to provide short and long term loans to farmers to carry our agricultural production.

What are the problems of agriculture finance?

Inadequate agricultural credits : The sources of institutional finance are inadequate to meet the requirements of agricultural credit. Farmers still depend on moneylenders for their credit needs. 2. Regional inequalities : There exists regional inequalities in the distribution of institutional credit.

What are the 4 types of agriculture?

  • Livestock production.
  • Crop production.
  • agricultural economics.
  • agricultural engineering.

What is financial management and examples?

Finance management is classified based on business activities or company’s accounts or personal account. Financial management example for business or company includes managing telephone cost, hiring a new employee, purchasing of facilities, project budgets, etc.

What is financial manager in simple words?

Financial managers generally oversee the financial health of an organization and help ensure its continued viability. They supervise important functions, such as monitoring cash flow, determining profitability, managing expenses and producing accurate financial information.