Agribusiness Systems Level AG1
Essential Questions:
1. What are the economic principles that govern AFNR businesses?
2. What are the management and planning principles in AFNR businesses?
3. How can record keeping accomplish business objectives and comply with laws and regulations?
Essential Vocabulary: advertising, asset, balance sheet, branding, budget, capital, cash flow, commodity exchange, consumer, competitors,
cooperative, corporation, credit, customer, demand, direct sales, disposable income, entrepreneurship, equity, FDA (Food and Drug
Administration), futures market, goals, income statement, inputs, inventory, liability, loan, loss, market equilibrium, mission, net worth, niche
marketing, objectives, outputs, price, pricing, product, profit, proprietorship, retail, risk, supply, USDA (United States Department of Ag), valueadding, wholesale
Essential Understanding
The student will demonstrate competence in the application of principles and techniques for the development and management of Ag business
systems.
ABS.01: The student will utilize economic principles to establish and manage an AFNR enterprise.
Prior Background Knowledge
Required:
 computer experience
 basic Math and ELA skills
 basic speaking and
listening skills
 basic collaboration tools
Students will know…
 how to apply principles of
capitalism in the business
environment.
 how to apply principles of
entrepreneurship in
businesses.
 how to identify how
markets arrive at a price for
a commodity.
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MK102
MK108
Vocabulary:
 supply
 demand
Drafted July 1, 2015
Students will understand that…
 there are a variety of
ownership structures in
AFNR businesses.
 there is an interdependency
between supply, demand,
and price.
Students will be able to…
 recognize principles of
capitalism as related to
AFNR businesses. (FBM)
 differentiate types of
ownership and outline the
structure of AFNR
businesses in a capitalistic
economic system. (FBM)
 execute supply-anddemand principles in
AFNR businesses. (FBM)
 describe the meaning,
importance and economic
impact of
entrepreneurship. (FBM)
 classify the characteristics
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












price
market equilibrium
consumer
product
cooperative
proprietorship
corporation
entrepreneurship
retail
wholesale
direct sales
loan
liability
asset

of successful entrepreneurs
in AFNR businesses. (AIO)
demonstrate
entrepreneurship,
including idea generation,
opportunity analysis and
risk assessment. (SAE)
ABS.02: The student will utilize appropriate management planning principles in AFNR business enterprises.
Students will know…
Students will understand that …
Students will be able to…
Prior Background Knowledge
Required:
 how to compose and
 business plans with goals,
 recognize quality AFNR
analyze a business plan for
objectives, and mission
business plan components
 computer experience
an enterprise.
statements drive successful
that have been developed
 basic Math and ELA skills
business.
using the SMART (specific,
 how to read, interpret,
 basic speaking and
measurable, attainable,
evaluate and write a
 business plans are living,
listening skills
realistic and timely) format.
mission statement to guide
breathing documents that
 basic collaboration tools
( FBM)
business goals, objectives
grow and change with the
and resource allocation.
business.
 identify and observe ethical
standards in planning and
 how to apply appropriate
operating AFNR
management skills to
businesses. (SAE)
organize a business.
 read and interpret mission
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statements. (FBM)
MK453
 identify the meaning and
importance of goals and
Vocabulary:
objectives in AFNR
 goals
business enterprises. (SAE)
 objectives
Drafted July 1, 2015

mission

identify appropriate local,
state, federal, international
and industry regulations
for AFNR businesses.
(FBM)
ABS.03: Utilize record keeping to accomplish AFNR business objectives while complying with laws and regulations.
Students will know…
Students will understand that …
Students will be able to…
Prior Background Knowledge
Required:
 how to prepare and
 successful businesses maintain
 maintain production and
maintain all files needed to
accurate records and uses
agribusiness records. (FBM)
 computer experience
accomplish effective record
those to drive production
(SAE)
spread sheets
keeping.
decisions.
 basic Math and ELA skills
 monitor inventory to
 how to implement
 basic speaking and
maintain optimal levels
appropriate
inventory
listening skills
and calculate costs of
management practices.
carrying input and output
 basic collaboration tools
Vocabulary:
inventory. (FBM) (SAE)
 budget
 cash flow
 income statement
 balance sheet
 equity
 net worth
 inventory
 profit
 loss
 capital
 price
 credit
ABS.04: Apply generally accepted accounting principles and skills to manage cash budgets, credit budgets and credit for AFNR businesses.
Students will know…
Students will understand that …
Students will be able to…
Prior Background Knowledge
Required:
 how to use accounting
 a variety of factors affect
 manage assets, including
fundamentals to
the price of good and
credit, for agribusiness goal
 computer experience
accomplish
dependable
services.
achievement. (SAE)
 basic Math and ELA skills
Drafted July 1, 2015


basic speaking and
listening skills
basic collaboration tools
bookkeeping and fiscal
management.
Vocabulary:
 advertising
 pricing
 commodity exchange
 futures market
 profit
ABS.05: Assess accomplishment of goals and objectives by an AFNR business.
Students will know…
Students will understand that …
Prior Background Knowledge
Required:
 how to maintain and
 successful business
interpret financial
maintains accurate records
 computer experience
information (income
and uses those to drive
 basic Math and ELA skills
statements, balance sheets,
production decisions.
 basic speaking and
inventory, purchase orders,
listening skills
accounts receivable and
 basic collaboration tools
cash-flow analyses) for
businesses.
Vocabulary:
 inputs
 outputs
Drafted July 1, 2015
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identify financial concepts
associated with production
and profit. (FS)
use accounting information
to estimate the cost of
goods sold and margins on
the goods. (FS)
explain the importance of
return on investment for an
agribusiness
enterprise.(FBM)
Students will be able to…
 identify accounting
information in AFNR
business reporting and
management. (FBM)
 maintain accounting
information needed to
prepare an income
statement, balance sheet
and cash-flow analysis for
an AFNR business. (FBM)
 interpret financial
information for an AFNR
business to determine
profitability, net worth
position, financial ratios,
performance measures and
ability to meet cash-flow
requirements. (FBM)
 name and explain the
impact of external
economic factors on an
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ABS.06: Use industry-accepted marketing principles to accomplish AFNR business objectives.
Students will know…
Students will understand that …
Prior Background Knowledge
Required:
 how to conduct
 businesses have a variety of
appropriate market and
options for marketing
 computer experience
marketing research.
goods and services.
 basic Math and ELA skills
 how to develop strategies
 basic speaking and
for marketing plan
listening skills
implementation.
 basic collaboration tools
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AB242
Vocabulary:
 value-adding
 branding
 niche marketing
Drafted July 1, 2015
AFNR business. (FBM)
recognize how changes in
prices of inputs and/or
outputs influence the
financial statements of an
AFNR business. (FBM)
calculate percentages,
ratios and related business
applications. (FBM)
summarize financial data
for use in preparing
various business financial
statements. (FBM)
interpret and evaluate
financial statements,
including income
statements, balance sheets
and cash-flow analyses.
(FBM)
Students will be able to…
 apply benefit/cost analysis
to marketing in AFNR
businesses. (FS)
 describe functions in
agricultural marketing.
(FBM)
 evaluate alternative
marketing strategies, such
as value-adding, branding
and niche marketing, and
propose and implement
appropriate modifications
to achieve AFNR business
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customer
disposable income
competitors
ABS.07: Create a production system plan.
Students will know…
Prior Background Knowledge
Required:
 how to prepare a step-bystep production plan that
 computer experience
identifies needed resources.
 basic Math and ELA skills

how to develop a
 basic speaking and
production and operational
listening skills
plan.
 basic collaboration tools
 how to utilize appropriate
techniques to determine the
most likely strengths,
weaknesses and
inconsistencies in a
business plan and relate
these to risk management
strategies.
 how to manage risk and
uncertainty.
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RM001
RM004
RM007
Vocabulary:
 USDA (United States
Department of Ag)
 FDA (Food and Drug
Administration)
 risk
Drafted July 1, 2015

Students will understand that …
 business can manage risk
through production and
processing decisions.
goals. (AAP)
identify and use strategies
frequently employed in
marketing programs,
including those used in
niche markets. (FBM)
Students will be able to…
 prepare a flowchart that
shows production
processes, including the
resources needed for each
step. (FS)
 identify the components of
a production and
operational plan. (SAE)
 identify common resources
needed to operate a
production facility. (LP)
 examine legal and industry
requirements for a
production facility. (FS)
 examine a business plan to
identify inconsistencies and
actions to correct
inconsistencies. (FBM)
 determine the meaning and
importance of risk and
uncertainty with AFNR
enterprises. (FBM)
Drafted July 1, 2015