FARM BUSINESS

MANAGEMENT

What is a Farm Business

Manager?

Oversee business operations of a farm by

providing leadership and organization during

the production process.

•Select seed

•Choose livestock to purchase

•Purchase new equipment

•Oversee production and distribution

•Supervise workers

•Etc.

WHAT MAKES A SUCCESSFUL

FARM MANAGER?

ADAPTS TO

CHANGES IN

MARKETS

EXPLORES NEW

IDEAS

GOOD PROBLEM

SOLVER

Farming Scenario

Two farmers were approximately the same age and they started farming

at about the same time. Mr. Brown acquired a good, debt-free farm. Mr.

Johnson started with very little capital as a tenant. At the end of his

career, Mr. Brown had lost his farm and was working for Mr. Johnson, who

by that time owned his own farm. Mr. Brown had descended the

agricultural ladder while Mr. Johnson had built an extremely successful

farm.

WHAT HAPPENED?

Mr. Brown was serious and hard working. He was an excellent

employee. He was superior to Mr. Johnson as a mechanic. He

understood the feeding and care of livestock better than Mr.

Johnson. To the average observer he was a better farmer than

Mr. Johnson. His machinery was in better repair, and his livestock always looked

good. With that being the case, why did Mr. Brown fail while Mr. Johnson

succeeded? The answer lies in one of the most important concepts in being a

successful farm

manager, Mr. Johnson was more flexible. Whereas Mr. Brown always did the

same things throughout his career, Mr. Johnson

adapted his operations to changing economic conditions. When

crop prices were low, he selected cattle enterprises that utilized

cheap feed; he was quick to adopt new farming methods that

held promise of reducing costs.

TRUE STORY OF TWO

FARMERS (FLEXIBILITY)

MR. BROWN

GOOD FARM

HARD WORKER

MASTER MECHANIC

LIVESTOCK ALWAYS LOOKED GOOD

MR. JOHNSON

ADAPTED TO CHANGES IN MARKETS

MADE GOOD LONG TERM DECISIONS

MANAGEMENT

THE CONTROL, MANIPULATION, OR DIRECTION OF FACTORS TO REACH A GOAL

FARM MANAGEMENT

BEING CONCERNED WITH THE DECISIONS THAT AFFECT THE PROFITABILITY OF THE FARM BUSINESS

FACTORS OF PRODUCTION

LAND – Natural resourcesNaturally occurring goods like water, air, soil, minerals, etc. that

are used in the creation of products.

LABORHuman effort used in production which also includes technical

and marketing expertise. Labor can also be classified as the

physical and mental contribution of an employee to the

production of the goods.

CAPITALhuman-made goods which are used in the production of other

goods. These include machinery, tools, and buildings. (Tractors,

farm vehic

SETTING GOALS

•Goals are broad statements that show

where you want to be after a designated

period of time.

OBJECTIVES

•Steps that need to be taken in order to

reach a goal.

ADVANTAGES TO SETTING

GOALS

Shows where you are going – provides a “road map”

Makes it easier to get where you are going

Prepares you for the future

Gives purpose and direction

DISADVANTAGES OF SETTING

GOALS

Takes time to decide on goals

Sometimes difficult because of conflicting

goals

Hard to determine priorities

FOR GOAL SETTING TO BE

SUCCESSFUL, THEY SHOULD BE:

Written, so that a record is kept

Realistic in view of existing conditions

Timed and able to be tested

Easily compatible with other goals

THREE TYPES OF GOALS

SHORT TERM – Goals that you would like to

accomplish within the next year.

INTERMEDIATE TERM – Goals that you would

like to accomplish within 1-10 years.

LONG TERM – Goals that might take longer

than 10 years to accomplish

What might be some possible goals

to set when starting a farm?

SHORT TERM:

INTERMEDIATE TERM:

LONG TERM: