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.

Decision Making

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

1. 2. 3. 4. 5. 6.

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 and objectives

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. Goals should be written. Goals should be realistic and attainable. Goals should have target dates. Goals should be 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: Friday Aug 27

Review Questions p. 10-11

Due Date: Monday Aug. 30

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 Smiths can purchase more bulls decreasing the cowto-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 Smiths goal is to have a 90% calf crop. Decide weather to purchase more bulls or begin an AI program. Put decision into effect. The Smiths will either purchase more bulls or they will begin to use an AI program at breeding time. Evaluate and accept the consequences- Did the Smiths reach their goal of a 90% calf crop. If they did not they will have to accept that consequence.