Agricultural Science·Agricultural economics · NSSCO 8.1.3

Farm budgeting & gross margins

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Before the rains come, every Namibian farmer has to answer one hard question: will this maize or these chickens actually make me money? A farm budget answers it on paper, before a single dollar is spent. We'll learn what a budget is and why it matters, gather the information it needs, meet gross margin and net margin, then work out real gross margins for maize and broilers in Namibian dollars — and finish by drawing up a simple budget of our own.

What you'll learn in this lesson

By the end you should be able to (NSSCO Agricultural Science 8.1.3):

  • State the types of information needed for budgeting, including prices of inputs, outputs and expected yield
  • Compare gross margin and net margin
  • Calculate the gross margin obtained from specific crops (maize) or animals (poultry)
  • Explain the preparation of budgets as an aid to planning and control
  • Draw up a simple budget
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Miss Olivia and Mike talk through the whole topic — with the figure and working drawn live.

Farm budgeting & gross margins · NSSCO Agricultural Science · namstudy