introduction to ag management

8/14/2019 Introduction to Ag Management

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Agribusiness

Management


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Agribusiness

ManagementDefinition


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Agribusiness

ManagementDefinition

The making of business decisions that

tend to maximize net income consistentwith the operators objectives.


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What decisions need to be made?

What do produce?

How much to produce?

What kinds and amounts of resources to

use?

What technology to use?

When to buy and sell?

How to finance?


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Who makes the decisions?

Farm Operator

Spouse

Landlords

Farm managers

Farm Advisors Government

Financers


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Major Areas of Business

Management Planning

Organizing

Directing (leading)

Staffing

Controlling


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Decision Making Steps

1. Define the problem

2. List Alternatives

3. Analyze alternatives

4. Select best alternatives

5. Act on decision 6. Evaluate


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Good Managers vs. Bad

Managers Takes Pride

Neat

Plans ahead

good record keeping

has the expertise

Careless

Unorganized

shoots from the hip

no records

outdated methods


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Four Basic Business Structures

Sole Proprietorship

Partnership

Corporation

Cooperative


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Sole Proprietorship

One owner makes all decisions

owner responsible for all liabilities

can have multiple employees


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Partnership

Owned by two or more people

Owners are responsible for their share of

liabilities

Written agreements usually specify percent

of ownership, responsibilities, and decision

making process.


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Corporation

Owned by stockholders

Business is treated as a single entity

Stockholders not personally responsible for

liabilities of the business

Returns profits in form of dividends to

stockholders


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Cooperative

Owned by the users of the business

Elected board of directors

Profits are returned in the form of

patronage refunds to users of the coop


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Business Mission Statement

Mission - a concise statement (25 words or

less) of the goals and objectives of the

business. Acceptable - To produce high quality

tilapia filets at a profit for retail food stores

within a 60-mile radius of our productionfacility.


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Mission Statements

Unacceptable =

To make a profit growing fish

To sell fish to area food stores

To sell everything we grow


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What is your mission statement?


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SHS Ag Department Mission

Statement 1) To provide the cognitive, psychomotor,

and effective skills necessary for a student

of agriculture to succedd in an agricultureoccupation, and

2) To provide the agriculture student with a

basis of agriculture skills and knowledge onwhich that student can build during his/her

further education.


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SHS Agriculture Program Goals 1) To improve the quality of life for the

Seneca community, the state and the nation,

and

2) To contribute to the goals and objectives

of SHS by being an integral component of

the school system, and:

3) to develop agricultural competencies

needed by individuals engaged in or

preparing to be engaged in agricultural

occupations and:


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Program goals, cont.

4) To develop leadership, communication

and interpersonal skills to enable an

individual to obtain employment and to besuccessful in that employment and

5) to develop an awareness and literacy of

the agriculture industry in all members ofthe community

introduction to ag management

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