Ag Budgeting

What are the three main components of a budget?

• • A) Income, Expenses, Savings

  
  

• • B) Profit, Loss, Balance

  
  

• • 
    C) Costs, Revenue, Debt

  
  

Which of the following is not typically considered an expense in a farm budget?

• Equipment maintenance

• Crop yield

• Labor costs

What is "income" in the context of an agricultural business?

• • Total sales from products

  
  

• Money spent on seeds

• Profit after expenses

Which of the following is considered a variable expense in agriculture?

• Land mortgage

• Seed purchase

• Property taxes

Which is a key reason for having savings in a budget?

• To increase expenses

• To cover unexpected costs

• To reduce income

How often should a budget be reviewed and adjusted?

• Annually

• Monthly

• Never

Which strategy is best for managing unexpected expenses in agriculture?

• Ignore them

• Allocate a contingency fund

• Borrow money immediately

Which of the following is essential when creating a new budget?

• Guessing future expenses

• • Analyzing past financial records

  
  

• Ignoring past income

What is a fixed expense in an agricultural budget?

• Seed purchase

• Equipment leasing

• Fertilizer costs

When planning a budget for a small farm, what should be considered first?

• Profit expectations

• Fixed and variable expenses

• Personal spending