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?
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Farm Operator
Spouse
Landlords
Farm managers
Farm Advisors
Government
Financers
Major Areas of Business
Management
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Planning
Organizing
Directing (leading)
Staffing
Controlling
Decision Making Steps
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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
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Takes Pride
Neat
Plans ahead
good record keeping
has the expertise
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Careless
Unorganized
shoots from the hip
no records
outdated methods
Four Basic Business Structures
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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