5 ABE_Farm Management - Handout.pdf

# Agricultural Management **Manila Review Institute, Inc.** Established in 1974 ## **About Agricultural Management** - Simply, the effective and efficient use of scarce resources to achieve organizational goals. - Learn More ## **Farm Management** - The decision-making process whereby limited r...

# Agricultural Management **Manila Review Institute, Inc.** Established in 1974 ## **About Agricultural Management** - Simply, the effective and efficient use of scarce resources to achieve organizational goals. - Learn More ## **Farm Management** - The decision-making process whereby limited resources are allocated to a number or production alternatives to operate and organize the business in such a way as to retain some objectives. ## **Farm Business** - Refers to any activity which involves the production, selling or trading of needed products and services. When such activity revolves around a farm, it is a Farm Business. ## **Process of Management** - **Planning** - the process of establishing the goals and a suitable course of action for achieving those goals. - **Staffing** - concerned with locating perspective employees to fill the job created by the organizing process. - **Organizing** - the process of arranging and allocating work, authority and resources among an organization's members so that they can achieve the organization's goals. - **Directing** - is aimed at getting members of the organization to move in the direction that will achieve its objective. - **Controlling** - the process of ensuring that actual activities conform to planned activities. - **Leading** - the process of directing and influencing the task-related activities of group members or an entire organization. ## **Context to Farm Management** - **Farm Level Management** - **Farm Management Extension** - **Farm Management Research** ## **Farm Level Management** - The day-to-day operation or running of activities within the farm business. ## **Farm Business Activities** - **Farm Development or Farm Investment** - These are the activities related to the purchase, depreciation, sale of long-lived assets, land, buildings, machinery, orchards, vineyards and breeding stock. - **Production** - Include the revenue from sales, other farm revenue e.g. government programmed payment. - **Financial** - Include all transactions related to borrowing money and paying interest and principal on debt of all kinds. ## **Farm Management Extension** - Concerned with the provision of information which will assist the farmers in their management to achieve goals. ## **Farm Management Research** - Concerned in generating knowledge on farmers’ production goals, farmers' decision-making process, farm problems, factors that are affecting farmers' performance and behavior, constraints facing farmers: technical, institutional, society, and among others. ## **Farm Management Decisions** - **Organization Management Decisions** - **Administrative Management Decisions** - **Marketing Management Decisions** ## **Human Resource Management** - It includes all activities used to attract and retain employees and to ensure they perform at a high level in meeting organizational goals. ## **Classes of Risk in Agriculture** - Climate Change - Biodiversity Loss - Food Insecurity ## **Sources of Labor** - Family Labor - Hired Labor ## **Methods of Reducing Risks** - Insurance - Diversification - Future Contract - Flexibility - Liquidity ## **Health Break** The image is of a corn field.