4. WHO IS A SUCCESSFUL FARM
MANAGER?
ADAPTS TO CHANGES IN MARKETS
EXPLORES NEW IDEAS
OPERATES AS A RESOURCE
MANAGER
5. TWO FARMERS - TRUE STORY
A true story of two farmers is helpful in illustrating certain
characteristics of successful management. These two farmers
were approximately the same age and they started farming
at about the same time. Mr. Brown acquired in marriage a
good farm free of debt. Mr. Johnson started with very little
capital as a tenant. At the end of his career, Mr. Brown had
lost his farm and was working for Mr. Johnson, who by that
time owned his own farm. Mr. Brown had descended the
agricultural ladder while Mr. Johnson was climbing up.
6. WHAT HAPPENED?
Mr. Brown was serious and hard working. He was an excellent employee. He was superior to
Mr. Johnson as a mechanic. He understood the feeding and care of livestock better than Mr.
Johnson. To the superficial observer he was a better farmer than Mr. Johnson. His machinery
was in better repair. His livestock always looked good, sometimes almost too good. Why,
then, did he fail when Mr. Johnson succeeded? The answer lies in one of the most important
concepts in being a successful farm manager. Mr. Johnson was more flexible. Whereas Mr.
Brown kept the same enterprises throughout his career. Mr. Johnson adapted his operations
to changing economic conditions. When crop prices were low, he selected cattle enterprises
that utilized cheap feed; he was quick to adopt new farming methods that held promise of
reducing costs.
Successful farm management decisions must “pays off over the long haul”.
8. Planning
Planning means choosing a course of
action.
To plan, a manager must establish goals,
identify resources, and allocate the
resources to competing uses.
9. The Business Planning Cycle
Planning Process
Take Action
Get Results
Integrate Changes
Explain Deviation
Compare Actual vs. Plan Measure & Record Results
10. Implementation
Once a plan is developed, it must be implemented, or set
in motion.
To implement, the manager must acquire the resources
needed for the plan and oversee the process.
Coordinating, staffing, purchasing, and supervising fit
under this function.
11. Control
Control is the “feedback” function.
To control, the manager must monitor
results, record information, compare results
to a standard, and take corrective action as
needed.
13. Strategic Farm Management
Strategic management consists of charting the
overall long-term course of the business
Tactical management consists of taking short-run
actions that keep the business moving along that
course until the destination is reached
14. Steps in Strategic Management
1. Define the mission of the business
2. Formulate the goals for the farm and family
3. Assess the resources available to the business (internal
scanning)
4. Survey the world surrounding the business (external
scanning)
5. Identify and select appropriate strategies
6. Implement and refine the selected strategies
15. Steps in Tactical Decision Making Mgt.
1. Identify and define the problem or opportunity
2. Identify alternative solutions
3. Collect data and information
4. Analyze the alternatives and choose one
5. Implement the decision
6. Monitor and evaluate results
7. Accept responsibility for the decision
16. Summary
Good management means the difference between
earning a profit or suffering a loss. The overall
direction is defined through strategic planning.
The strategic plan is carried out via a number of
tactical decisions. Agricultural managers operate
in an environment that differs from that of most
other businesses.