Agribusiness

1. Agribusiness
Management

2. Agribusiness
Management
Definition

3. Agribusiness
Management
Definition
The making of business decisions that tend to
maximize net income consistent with the operators
objectives.

4. 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?

5. Who makes the decisions?
 Farm Operator
 Spouse
 Landlords
 Farm managers
 Farm Advisors
 Government
 Financers

6. Major Areas of Business
Management
 Planning
 Organizing
 Staffing
 Directing (leading)
 Controlling

7. Decision Making Steps
 1. Define the problem
 2. List Alternatives
 3. Analyze alternatives
 4. Select best alternatives
 5. Act on decision
 6. Evaluate

8. Good Managers vs. Bad
Managers
Takes Pride
Neat
Plans ahead
good record
keeping
has the expertise
Careless
Unorganized
shoots from the
hip
no records
outdated
methods

9. Four Basic Business Structures
 Sole Proprietorship
 Partnership
 Corporation
 Cooperative

10. Sole Proprietorship
 One owner makes all decisions
 owner responsible for all liabilities
 can have multiple employees

11. 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.

12. 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

13. 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

14. 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.”

15. Mission Statements
 Unacceptable =
 “ To make a profit growing fish”
 “ To sell fish to area food stores”
 “ To sell everything we grow”

16. What is your mission
statement?

17. 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.

18. 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:

19. 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