4. poor timing
not managing weeds and pests
not managing water
not matching crops and livestock to the land
high cost of materials or equipments
weather/Sakuna
Market and price risk
Human Risk
Legal Risk
P R O D U C T I O N R I S K
8. 4
MR. BROWN
• GOOD FARM - DEBT FREE
• HARD WORKER
• MASTER MECHANIC
• LIVESTOCK ALWAYS LOOKED
GOOD
MR. JOHNSON
• ADAPTED TO CHANGES IN
MARKETS
• MADE GOOD LONG RANGE
DECISIONS
ANG DAWALANG MAGSASAKA (FLEXIBILITY)
9. Small farms, by nature are limited
resource operations
-time, labor, scale, and capital are
limiting
Planning ahead helps avoid mistakes
and wasting resources
Producers who take the time to
develop and follow through with
business and marketing plans have
taken a giant step towards profitability.
P L A N A H E A D
10. Concerned with the decisions that
affect the profitability of the farm
business.
F A R M M A N A G E M E N T
11. • LAND
- Natural resources
• LABOR
- Human effort
• CAPITAL
"Tools" tractors or Machine
• MANAGEMENT
- The direction of factors
FACTORS OF PRODUCTION
12. Goals are broad statements that show
where you want to be after some
period of time.
G O A L S
13. Objectives are the steps that must be
taken in order to reach goals.
OBJECTIVES
14. • Shows where you are going - provides a
"road map"
• Makes it easier to get where you are
going
• Prepares you to meet the future
• You can see the big picture and can focus
on critical relationships
• Gives purpose and direction
• Relieves some worries and uncertainties
ADVANTAGES TO SETTING GOALS
15. They should be:
• W -written so a record is kept
• R - realistic in view of existing conditions
• O- original to one's situation
• T - timed and able to be tested
• E - easily compatible with other goals
FOR GOAL SETTING TO BE SUCCESSFUL
16. Short term - goals that you would like
to accomplish within the next year
Intermediate term - goals to
accomplish within one to ten years
Long term - goals that require more
than ten years to accomplish
T H R E E T Y P E S O F G O A L S
19. “WITHOUT RECORD KEEPING, THE
CHANCES OF MANAGING A
SUCCESSFUL BUSINESS ARE POOR"
R E C O R D K E E P I N G
20. For better decision making
To determine our progress or lack of
progress
To participate in government
programs
To qualify for loans
To establish value of our assets
WHY SHOULD WE KEEP
G O O D R E C O R D S ?
21. Financial records - Include receipts and
expenses and will give the net worth
statement, income statement, and cash
flow summary.
Physical records - Show the production of
crops and livestock and the usage of
inputs.
Ex. Crop yields, livestock births, acres
planted, bushels harvested, etc.
THERE ARE TWO GENERAL
K I N D S O F R E C O R D S
23. A budget is a plan for action by
the business. Budgets include
projections for income and expenses
for all or part of the business. Should
be written.
DEVELOPING AND USING BUDGETS
25. Projected costs and returns
associated with one production
process.
E N T E R P R I S E B U D G E T
26. Projected costs and returns
associated with some change in the
farming business.
Ex. Comparing a possible change from
custom harvesting to ownership of
combine equipment.
P A R T I A L B U D G E T
27. Physical and financial plans
for the entire farming business for
a specific period of time.
The total of all production
processes.
WHOLE FARM BUDGET
29. If income is greater than
expenses control spending to
maximize surplus if expenses are
greater than income a detailed
analysis of spending is needed.
INCOME VS. EXPENSES
33. Due to increased
technology global trade has
become more and more
common. Farmers in other
country, ship their harvested
crops and in return of other
imported goods.
G L O B A L I M P A C T
