Introduction to Ag Management material.ppt

Agribusiness magt

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•outdated methods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