Farm Management: What Is It All About? Kay and Edwards Chapter 1

Present and Future Issues Facing Farm Managers The age of information and technology Financial management Human resources Producing to meet consumer demands Environmental and health concerns

The Age of Precision Farming Technology has allowed better data collection, analysis, and interpretation GPS Personal computers More accurate tests and instantaneous results Animal specific data collection Greater access to off-farm data and consultation through the use of the Internet

The Age of Precision Farming Cont. Agricultural technology is one of the most difficult issues for a farm manager Agricultural technology is growing at an incredible rate Cost-benefit analysis has become an important tool to the farm manager for analyzing technology adoption Technology can have many effects, e.g., increased yields, lower input costs, create a more uniform product or a new product, reduced impact on the environment, etc.

Financial Management Issues Finding capital to finance operations  Keeping detailed records of financial performance and credit needs Conforming to generally accepted accounting principles (GAAP)  Deciding whether to deal with financial matters in-house or to hire it out

Financial Management Issues Cont. Obtaining the knowledge to read, interpret, and use the accounting information from the farm Maintaining control over the assets Ability to develop cash-flow documents that extend over many periods

Human Resources Issues Decide whether to hire an employee versus hiring the job out, e.g., having a full time vet, or part time versus full time employee Decide the level of specialization each employee will have  Paying favorable wages, providing competitive benefits, and maintaining suitable working conditions for employees Managing labor contractors

Human Resources Issues Cont. Managing labor is a necessary skill a farm manager must have Some of the skills include: Motivational Evaluation Communication Training of personnel

Consumer Demand Issues Producing differentiated products to recapture some of the marketing margin Understanding the economics of consumer demand and free trade Understanding production economics

Consumer Demand Issues Cont. Focusing on a global market Deciding whether to focus on commodities or characteristics Understand the marketing chain

Environmental and Health Issues Must know and understand the regulations pertaining to health and environmental issues Must be able to capitalize on being environmental or producing safer products Must realize that there is a segment of consumers who care about the environment, food safety, animal welfare, and worker issues including safety and a living wage

Environmental and Health Issues Cont. Must be able to handle agricultural waste in an environmental fashion Must realize that environmental and health issues are the new trade barriers