Which factor is essential for determining the profitability of a farm operation?

Correct option is D

• Key aspects of farm management affecting profitability:

  • Crop Planning: Choosing the right crop based on market demand and climate.

  • Input Optimization: Proper use of fertilizers, pesticides, and irrigation to reduce costs.

  • Risk Management: Diversifying crops to reduce dependency on a single income source.

  • Marketing Strategies: Selling produce at the right time and market for maximum profit.

  • Technology Adoption: Using modern farming techniques like precision agriculture, mechanization, and AI-driven analytics to enhance productivity.

• Poor farm management can result in:

  • Overuse or underuse of inputs, leading to reduced productivity.

  • High production costs reducing overall profit margins.

  • Market losses due to improper storage and supply chain issues.

  • Environmental degradation from unsustainable practices.