Farm Management

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Farm Management

• Chapter 21
• Human Resource Management

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Chapter Outline

• Characteristics of Agricultural Labor
• Planning Farm Labor Resources
• Measuring the Efficiency of Labor
• Improving Labor Efficiency
• Improving Managerial Capacity
• Obtaining and Managing Farm Employees
• Agricultural Labor Regulations

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Chapter Objectives

• To describe trends in the use of human resources
  in agriculture
• To illustrate how to plan for human resources
  needed for different situations
• To outline methods for measuring and improving
  labor efficiency
• To suggest ways to improve the management of
  agricultural employees
• To summarize the laws regulating agricultural
  workers

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Table 21-1Workers on United States Farms
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Characteristics of Agricultural Labor
Labor is a continuous-flow input. It cannot be
stored for later use it must be used as it
becomes available or it is lost. Full-time labor
is a lumpy input, available only in indivisible
units. Although part-time and hourly labor is
used, the majority of agricultural labor is
provided by full-time, year-round employees.
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Table 21-2Number of Farm Employees on U.S.
Farms, 2002, by Number per Farm
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Planning Farm Labor Resources

• Quantity of labor needed (labor as a fixed cost
  vs. labor as a variable cost)
• Quality of labor needed
• Management style

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Figure 21-1Flow chart of the farm labor planning
process
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Table 21-3Labor Estimate Worksheet
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Figure 21-2Profile of labor requirements and
availability
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Figure 21-3Organizational chart for a farm
business
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Measuring the Efficiency of Labor

• Value of farm production per person
• Labor cost per crop acre
• Crop acres per person
• Cows milked per person

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Table 21-4Labor Efficiency by Farm Size for Iowa
Farms, 2001
Source 2001 Iowa Farm Costs and Returns
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Improving Labor Efficiency

• Increase enterprises to make use of surplus labor
• Simplify working procedures and routines
• Ensure tools and supplies are at work area
• Make sure working conditions are as comfortable
  as possible
• Plan and schedule work in advance

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Figure 21-4Labor cost per dairy cow for
different herd sizes
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Improving Managerial Capacity

• Reinforce and upgrade skills
• Understand principles behind technology
• Develop an efficient office
• Apply the principles of immediacy and impact to
  decide which jobs must be completed first
• Participate in community activities
• Develop a world view

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Obtaining and Managing Farm Employees

• Recruiting
• Interviewing and selecting
• The employee agreement
• Compensation
• Training hired labor
• Motivation and communication
• Bridging cultural barriers
• Evaluation

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Table 21-5Benefits Received by Employees on
Swine Farms (U.S., 1995)
Source Employee Management, National Hog
Farmer, 1996
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Agricultural Labor Regulations

• Minimum wage law
• Social Security
• Federal income tax withholding
• Workers Compensation
• Unemployment insurance
• Child labor regulations
• Occupational Safety and Health Act (OSHA)
• Immigration Reform and Control Act
• Migrant labor laws
• Civil Rights
• Disability

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Summary
Although the number of people employed in
agriculture has fallen dramatically in the past
50 years, their productivity and skill levels
have increased more rapidly. Good labor
management techniques can improve labor
efficiency and satisfaction. A manager of farm
labor must be familiar with and comply with
federal, state, and local laws that protect and
regulate workers.