COURSE TITLE- farm business management

COURSE NO.- ABM 534

COURSE INSTRUCTOR- DR. Anil bhat

Topic for presentation- farm management decisions

Prepared By: AMAN gupta

MANAGEMENT

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

FARM MANAGEMENT

CONCERNED WITH THE DECISIONS THAT AFFECT THE PROFITABILITY OF THE FARM

BUSINESS

WHO IS A SUCCESSFUL FARM MANAGER?

ADAPTS TO CHANGES IN MARKETS

EXPLORES NEW IDEAS

OPERATES AS A RESOURCE MANAGER

TWO FARMERS - TRUE STORY

A true story of two farmers is helpful in illustrating certain characteristics of successful management. These two farmerswere approximately the same age and they started farmingat about the same time. Mr. Brown acquired in marriage agood farm free of debt. Mr. Johnson started with very little capital as a tenant. At the end of his career, Mr. Brown hadlost his farm and was working for Mr. Johnson, who by thattime owned his own farm. Mr. Brown had descended the agricultural ladder while Mr. Johnson was climbing up.

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 superficial observer he was a better farmer than Mr. Johnson. His machinery

was in better repair. His livestock always looked good, sometimes almost too good. Why,

then, did he fail when 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 kept the same enterprises 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.

Successful farm management decisions must “pays off over the long haul”.

Functions of Management

Planning

Implementation

Control

Planning

Planning means choosing a course of action.

To plan, a manager must establish goals, identify resources, and allocate the resources to competing uses.

The Business Planning Cycle

Planning Process

Take Action

Get Results

Measure & Record ResultsCompare Actual vs. Plan

Explain Deviation

Integrate Changes

Implementation

Once a plan is developed, it must be implemented, or set in motion.

To implement, the manager must acquire the resources needed for the plan and oversee the process. Coordinating, staffing, purchasing, and supervising fit under this function.

Control

Control is the “feedback” function.

To control, the manager must monitor results, record information, compare results to a standard, and take corrective action as needed.

Figure 2-1Management flow chart based on three functions of management

Strategic Farm Management

Strategic management consists of charting the overall long-term course of the business

Tactical management consists of taking short-run actions that keep the business moving along that course until the destination is reached

Steps in Strategic Management

1. Define the mission of the business

2. Formulate the goals for the farm and family

3. Assess the resources available to the business (internal scanning)

4. Survey the world surrounding the business (external scanning)

5. Identify and select appropriate strategies

6. Implement and refine the selected strategies

Steps in Tactical Decision Making Mgt.

1. Identify and define the problem or opportunity

2. Identify alternative solutions

3. Collect data and information

4. Analyze the alternatives and choose one

5. Implement the decision

6. Monitor and evaluate results

7. Accept responsibility for the decision

Summary

Good management means the difference between earning a profit or suffering a loss. The overall direction is defined through strategic planning. The strategic plan is carried out via a number of tactical decisions. Agricultural managers operate in an environment that differs from that of most other businesses.

THANK YOU