Agribusiness Management

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Agribusiness Management
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Agribusiness Management

• Definition

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Agribusiness Management

• Definition
• The making of business decisions that tend to
  maximize net income consistent with 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• outdated methods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 production facility.

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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 agriculture
  occupation, and
• 2) To provide the agriculture student with a
  basis of agriculture skills and knowledge on
  which 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 be successful in that
  employment and
• 5) to develop an awareness and literacy of the
  agriculture industry in all members of the
  community