Farm

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• Farm Ranch Business Management
• Chapter 1

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Agribusiness Management

• daily operation
• decision making
• planning
• evaluating
• must understand all aspects of the business
• maximize profit

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Characteristics of Decisions

• Importance meet goals
• Frequency daily, yearly
• Imminence how soon
• Revocability can it be reversed?
• Available Alternatives choices

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Strategies for Decision Making

• reduce number of daily decisions
• collect data for alternatives
• establish priorities

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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

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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

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What are Objectives?

• the steps that must be taken in order to attain
  goals
• increase wheat production by 30 next year
• keep accurate records

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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

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Guidelines for setting goals

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

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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

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Priorities of Goals

• Dollar Value
• Time
• Orderly Sequence

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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

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