(i) Risks and uncertainties: enterprises should be analyzed to determine the risks and uncertainties involved.
(ii) Security: enterprises which require more security should be sited near the farm house/provision of adequate security
(iii) Land size: a large number of enterprises can be established on a large scale compared to a small scale farm.
(iv) Current trends in labour market: to determine availability and cost of labour especially during peak period.
(v) Farmers objectives and preferences: to ensure the farmer who is the operator has a sense of ownership of the plan and brings about motivation.
(vi) Current market trends and prices of outputs: to ensure consideration of enterprises with high returns.
(vii) Availability and cost of farm inputs: to identify enterprises that are affordable and whose inputs are readily available.
(viii) Government policy/regulation: to seek permission for enterprises undertaken on quota system e.g. coffee growing and avoid enterprises and farming systems prohibited by the government.
(ix) Environmental factors: soil, climate and topography should be analyzed to determine livestock and crop enterprises that are suitable to the local ecological conditions.
(x) Communication and transport facilities: to facilitate movement of outputs to the market and supply of inputs. Also helps in conveying improved methods of farming and market trends.
(xi) Availability of capital: to acquire farm inputs.
(xii) Possible production enterprises: should be identified and analyzed so that suitable and profitable enterprises are selected.
Mohaissack answered the question on October 10, 2017 at 13:53