Farm Management in 21 st Century Presented By Hadi Bux Laghari

Farm Management: In today’s world where successful farms are subject to ever changing urban, rural, labor, demographics, Global Warming, Resource degradation, and technological factors. 2/51

Keeping in Mind Following Key Areas: Land Water Air Genetic Energy Labor Capital Human & Environmental Safety International Standards 3/51

Farm management deals with the organization & operation of a farm with the objective of maximizing profits from the farm business on a continuing basis. 4/51

The farmer needs to adjust his farm organisation from year to year to keep abreast of changes in methods, price variability & resources available to him. Thus farm management is the science which deals with the analysis of the farming resources, alternatives, choices & opportunities within the framework of resource restrictions & social & personal constraints of farming business 5/51

Ultimate aim being to raise the standard of living of the farming people 6/51

Farm management is a decision-making science. It helps to decide about the basic course of action of the farming business. The basic decisions of the farming business are: (a)What to produce or what combination of different enterprises to follow? (b)How much to produce and what is the most profitable level of production? (c)What should be the size of an individual enterprise, which, in turn, will determine the best overall size of the farm business? (d)What methods of production (production practices or what type of quality of inputs and their combination) should be used? (e)What and where to market? (f)Whatever the system is being planned and adapted must not harm the natural resources and the environment? 7/51

MANAGEMENT OF A FARM FARM MANAGEMENT AND OTHER SCIENCES APPLICATION OF FARM MANAGEMENT 8/51

FARM PLANNING Planning means taking decisions in advance. It stimulates thinking, broadens understanding & challenges the farmer to move forward. It is a forward-looking approach. The farm plan helps a farmer to decide how to combine new ideas & old ones to his best advantage. By identifying his credit & supply needs, the farm plan helps him to arrange for the timely supplies of credit, seeds, fertilisers, etc 9/51

Complete planning & budgeting. 1.FARM MAP. The farm is carefully mapped out, giving its salient features, like soil type soil-fertility& rotations followed. Low-lying areas or other such features are also shown in thesoilsoil-fertility map. Then based on the previous crop history, land- capability classification is done & is also shown in the map.cropland- capability 10/51

2. INVENTORY OF FARM RESOURCES. Every asset on the farm, ranging from hand-tools to sources of power, etc. are inventoried. It does not provide us with the picture of the resources as owned by a farmer, but we can also work out their use-patterns & their condition, i.e. whether they will have to be replaced or whether they will be sufficient for the new plan or some augmentation will be needed. 11/51

3. EXAMINING THE EXISTING ORGANISATION. Having prepared an inventory of the existing resources & their availability, what we are interested in is their use- pattern within the framework of the existing crop mix, whether the resources are understocked or overstocked. A careful analysis of the restrictions & weaknesses of the farm organisation is made. The weaknesses maybe many, such as:crop Lumpy units may not be fully utilised. Irrigation may not be adequate. The peak-season labour requirements may not be met. Short-term capital may be inadequate. 12/51

4. LAYING DOWN RESTRICTIONS & PLANNING. (a)Restrictions maybe with regard to bullock- power availability, or in respect of putting some area under cotton, or vegetables for home-consumption, though such a change in the cropping patternmay not be profitable.cropping pattern (b)Labour-requirements, power requirements, capital needs & new equipment needed are worked out & a suitable crop mix is adopted.crop 13/51

FARM-EFFICIENCY MEASURES Efficiency is the ratio of the output to the input. This concept is important as it shows how much profitable the farming business is. 14/51

Cost concepts Value of hired human labour(permanent & casual) Value of owned bullock labour Value of hired bullock labour Value of owned machinery Hired machinery charges Value of fertilisersfertilisers Value of manure(produced on the farm, & purchased) Value of seed (both farm produced & purchased) Value of insecticides & fungicidesinsecticides Irrigation charges(owned & hired tubewells,pumping sets etc.) Canal-water charges Land revenue, cesses & other taxes Land Depreciation on farm implements(both bullock-drawn & worked with human labour) Depreciation on farm buildings, farm machinery & irrigation structures. Interest on the working capital Miscellaneous expenses( wages of artisans, cost of ropes & repairs to small farm implements) 15/51

Variable costs These are the costs which are of the recurring type, & have to be incurred during every production period, e.g. seed fertilisers & insecticides. These are also known as operational costs or working costs.fertilisersinsecticides Fixed costs. These costs are of non-recurring nature including cost of the tractor & other machinery buildings, irrigation structures, livestock, etc. Ccrops costs. These costs refer to the value of seeds & plants, manures & fertilisers, insecticides & fungicides & irrigation charges. Ccropsplantsfertilisersinsecticides 16/51

Machinery costs. These costs include the hiring charges of machinery, cost of fuel & lubricants, electricity bills, minor machinery repairs, depreciation & interest on machines & equipment. Labour costs. They include the wages paid in cash or kind to the hired labour & the imputed value of family labour used on the farm. Livestock costs. They include the costs of veterinary medicines & services, fodders, feeds,interest on the values of livestock & depreciation.medicines & services Land costs. They refer to the rent of land owned & taken on lease. Landland Building costs. They include the interest on the value of the building structure & depreciation on them. 17/51

18/51 Agriculture Before Green Revolution

19/51 Agriculture After the Green Revolution “Powered by Fuel”

Now Shared with everywhere 20/51

At the Expense of Nature 21/51

22/51 Massive Urbanization & Skyscrapers

23/51 Extra Burden

24/51 Massive Sprawl on Cities

25/51 Size of problem Size of response

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27/51 Consumers are now increasingly aware what they eat?

28/51 Drought, Floods and lack of drinking water

29/51 Land Degradation

30/51 All Can be Solved by only one and that is EDUCATION!