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Agribusiness Management. Chapter 1: Introduction. Functions of the Farm or Ranch Manager. Planning Day to Day Operation (Implementation) Evaluation for Control of the Business. Responsibility of the Farm or Ranch Manager.
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Agribusiness Management Chapter 1: Introduction
Functions of the Farm or Ranch Manager • Planning • Day to Day Operation (Implementation) • Evaluation for Control of the Business
Responsibility of the Farm or Ranch Manager • Making all parts of the business work together while using resources such as land, labor and capital wisely in order to make the most profit.
Classifications of Decisions • Importance • Frequency • Imminence • Revocability • Available Alternatives
Strategies for Decision Making • Reducing the number of daily decisions • Collecting data to compare alternatives • Establishing priorities based on importance
Systematic Approach to Decision Making • Better organize the thought process • Achieve outcomes more closely related to the goals • Be more timely in decision making
The Steps of the Decision Making Process • Define the problem • Gather information about alternative solutions • Evaluate alternative solutions • Make decisions consistent with goals and objectives • Take action and put your decision into effect • Evaluate and accept the consequences
Goals • Broad statements that show where you want to be after some period of time • Examples • To make profit every year on the farm • To increase cash grain sales by 10% per year over five years.
Objectives • The steps that must be taken in order to attain goals • Examples • To increase wheat sales by 30% next year • To keep accurate and complete farm business and family living records next year
Guidelines for Goal Setting • Goals should be • Yours • Written • Realistic and attainable • Have target dates • Compatible
Types of Goals • Short Term Goals • Those goals that can be achieved in less than 1 year. • Intermediate Goals • Goals that require 1-10 years for achievement. • Long Term Goals • Goals that usually require more than 10 years to accomplish
Determining the Priorities of Goals • Dollar Value • Time • Orderly Sequence
Techniques in Reaching Goals • Have regular check-ups • Use saved time and effort wisely and effectively • Organize efforts on a “things to do” work list • Check for slow or nonmoving goals • Modify goals as resources change or as the farm business and family use resources more efficiently
Assignment • Workbook p. 8 & 9 Chapter 1 Assignment Sheet 2-3 • Due Date: e-mail to me end of period Friday Aug 26
Chapter 1 Assignment Sheet 2 • #3 Smith Ranch— • Problem-Concerned that they do not have enough bulls resulting in a smaller calf crop. • Alternative solutions- Purchase more bulls or implement an artificial insemination program. • Evaluate alternatives- The Smith’s can purchase more bulls decreasing the cow-to-bull ratio or they can begin to artificially inseminate a portion or all of the herd. Cost, time and labor all need to be looked at when comparing the two alternatives. • Make a decision consistent with goals- The Smith’s goal is to have a 90% calf crop. Decide weather to purchase more bulls or begin an AI program. • Put decision into effect. The Smith’s will either purchase more bulls or they will begin to use an AI program at breeding time. • Evaluate and accept the consequences- Did the Smith’s reach their goal of a 90% calf crop. If they did not they will have to accept that consequence.
