Seymour Ag Business

1. FARM BUSINESS
MANAGEMENT

2. What is a Farm Business
Manager?
Oversee business operations of a farm by
providing leadership and organization during
the production process.
•Select seed
•Choose livestock to purchase
•Purchase new equipment
•Oversee production and distribution
•Supervise workers
•Etc.

3. WHAT MAKES A SUCCESSFUL
FARM MANAGER?
 ADAPTS TO
CHANGES IN
MARKETS
 EXPLORES NEW
IDEAS
 GOOD PROBLEM
SOLVER

4. Farming Scenario
Two farmers were approximately the same age and they started farming
at about the same time. Mr. Brown acquired a good, debt-free farm. 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 had built an extremely successful
farm.
WHAT HAPPENED?

5. 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 average observer he was a better farmer than
Mr. Johnson. His machinery was in better repair, and his livestock always looked
good. With that being the case, why did Mr. Brown fail while 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 always did the
same things 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.

6. TRUE STORY OF TWO
FARMERS (FLEXIBILITY)
 MR. BROWN
GOOD FARM
HARD WORKER
MASTER MECHANIC
LIVESTOCK ALWAYS LOOKED GOOD
 MR. JOHNSON
ADAPTED TO CHANGES IN MARKETS
MADE GOOD LONG TERM DECISIONS

7. MANAGEMENT
 THE CONTROL, MANIPULATION, OR
DIRECTION OF FACTORS TO REACH A GOAL

8. FARM MANAGEMENT
 BEING CONCERNED WITH THE DECISIONS
THAT AFFECT THE PROFITABILITY OF THE
FARM BUSINESS

9. FACTORS OF PRODUCTION
 LAND – Natural resources
Naturally occurring goods like water, air, soil, minerals, etc. that
are used in the creation of products.
 LABOR
Human effort used in production which also includes technical
and marketing expertise. Labor can also be classified as the
physical and mental contribution of an employee to the
production of the goods.
 CAPITAL
human-made goods which are used in the production of other
goods. These include machinery, tools, and buildings. (Tractors,
farm vehic

10. SETTING GOALS
•Goals are broad statements that show
where you want to be after a designated
period of time.

11. OBJECTIVES
•Steps that need to be taken in order to
reach a goal.

12. ADVANTAGES TO SETTING
GOALS
 Shows where you are going – provides a “road
map”
 Makes it easier to get where you are going
 Prepares you for the future
 Gives purpose and direction

13. DISADVANTAGES OF SETTING
GOALS
 Takes time to decide on goals
 Sometimes difficult because of conflicting
goals
 Hard to determine priorities

14. FOR GOAL SETTING TO BE
SUCCESSFUL, THEY SHOULD BE:
 Written, so that a record is kept
 Realistic in view of existing conditions
 Timed and able to be tested
 Easily compatible with other goals

15. THREE TYPES OF GOALS
 SHORT TERM – Goals that you would like to
accomplish within the next year.
 INTERMEDIATE TERM – Goals that you would
like to accomplish within 1-10 years.
 LONG TERM – Goals that might take longer
than 10 years to accomplish

16. What might be some possible goals
to set when starting a farm?
 SHORT TERM:
 INTERMEDIATE TERM:
 LONG TERM: