What is working capital in agriculture?

Working capital in agriculture refers to the funds necessary for the day-to-day operations of a farming business. It encompasses the cash and liquid assets needed to cover short-term expenses such as seeds, fertilizers, labor, and equipment maintenance. Adequate working capital is essential for maintaining operational efficiency, managing seasonal fluctuations, and ensuring that the farm can respond to unexpected expenses or opportunities. Proper management of working capital helps farmers sustain their operations and achieve profitability.