1. Agribusiness Management

2. Agribusiness Management
Definition

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

4. 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?

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

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

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

8. 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outdated methods

9. Four Basic Business Structures
Sole Proprietorship
Partnership
Corporation
Cooperative

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

11. 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.

12. 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

13. 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

14. 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.”

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

16. What is your mission statement?

17. 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.

18. 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:

19. 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