Agribusiness Management

Agribusiness Management Definition

Agribusiness Management Definition The making of business decisions that tend to maximize net income consistent with the operators objectives.

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?

Who makes the decisions? Farm Operator Spouse Landlords Farm managers Farm Advisors Government Financers

Major Areas of Business Management Planning Organizing Directing (leading) Staffing Controlling

Decision Making Steps 1. Define the problem 2. List Alternatives 3. Analyze alternatives 4. Select best alternatives 5. Act on decision 6. Evaluate

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Takes Pride Neat Plans ahead good record keeping has the expertise Careless Unorganized shoots from the hip no records outdated methods

Four Basic Business Structures Sole Proprietorship Partnership Corporation Cooperative

Sole Proprietorship One owner makes all decisions owner responsible for all liabilities can have multiple employees

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.

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

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

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.”

Mission Statements Unacceptable = “ To make a profit growing fish” “ To sell fish to area food stores” “ To sell everything we grow”

What is your mission statement?

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.

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:

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