Farm & Ranch Business Management Chapter #1

1. Farm & Ranch Business Management Chapter #1

2. Agribusiness Management: • daily operation • decision making • planning • evaluating • must understand all aspects of the business • maximize profit

3. Characteristics of Decisions • Importance: meet goals • Frequency: daily, yearly • Imminence: how soon • Revocability: can it be reversed? • Available Alternatives: choices

4. Strategies for Decision Making • reduce number of daily decisions • collect data for alternatives • establish priorities

5. What are the steps in the Decision Making Process? 1) define the problem (own or rent machinery or land) 2) gather information about alternative solutions 3) Evaluate alternative solutions 4) make decisions consistent with goals and objectives 5) take action 6) evaluate and accept consequences of your decision

6. What are Goals? • broad statements that show where you want to be after some period of time • make a profit every year • increase grain sales by 12% over 5 years

7. What are Objectives? • the steps that must be taken in order to attain goals • increase wheat production by 30% next year • keep accurate records

8. What are the advantages of setting goals? provides "road map” distinguishes between goals & objectives makes it easier to get where you are going prepares you to meet the future you see the big picture & focus on critical relationships gives you purpose and direction frees you from worries and uncertainties about where you are headed

9. Guidelines for setting goals • your own goals • goals in writing • realistic and attainable • target dates, time limits • goals should be compatible with each other

10. What are the types of Goals? 1) Short Term Goals: attainable in less than 1 year 2) Intermediate Term Goals: 1 to 10 years 3) Long Term Goals: more than 10 years

11. Priorities of Goals • Dollar Value • Time • Orderly Sequence

12. How do you reach your goals? • review goals annually (min) • use time and effort wisely • organize (things to do list) • check for slow moving goals • modify goals as resources change