1. Agribusiness Management
Chapter 1: Introduction

2. Functions of the Farm or Ranch Manager
Planning
Day to Day Operation (Implementation)
Evaluation for Control of the Business

3. Responsibility of the Farm or Ranch Manager
Making all parts of the business work together while using resources such as land, labor and capital wisely in order to make the most profit.

4. Decision Making

5. Classifications of Decisions
Importance
Frequency
Imminence
Revocability
Available Alternatives

6. Strategies for Decision Making
Reducing the number of daily decisions
Collecting data to compare alternatives
Establishing priorities based on importance

7. Systematic Approach to Decision Making
Better organize the thought process
Achieve outcomes more closely related to the goals
Be more timely in decision making

8. The Steps of the Decision Making Process
Define the problem
Gather information about alternative solutions
Evaluate alternative solutions
Make decisions consistent with goals and objectives
Take action and put your decision into effect
Evaluate and accept the consequences
Go through applying the steps on p. 14

9. Goals and objectives

10. Goals
Broad statements that show where you want to be after some period of time
Examples
To make profit every year on the farm
To increase cash grain sales by 10% per year over five years.

11. Objectives The steps that must be taken in order to attain goals
Examples
To increase wheat sales by 30% next year
To keep accurate and complete farm business and family living records next year

12. Guidelines for Goal Setting
Goals should be
Yours
Written
Realistic and attainable
Have target dates
Compatible

13. Types of Goals Short Term Goals Intermediate Goals Long Term Goals
Those goals that can be achieved in less than 1 year.
Intermediate Goals
Goals that require 1-10 years for achievement.
Long Term Goals
Goals that usually require more than 10 years to accomplish

14. Determining the Priorities of Goals
Dollar Value
Time
Orderly Sequence

15. Techniques in Reaching Goals
Have regular check-ups
Use saved time and effort wisely and effectively
Organize efforts on a “things to do” work list
Check for slow or nonmoving goals
Modify goals as resources change or as the farm business and family use resources more efficiently

16. Assignment Workbook p. 8 & 9 Chapter 1 Assignment Sheet 2-3
Due Date: to me end of period Friday Aug 26

17. Chapter 1 Assignment Sheet 2
#3 Smith Ranch—
Problem-Concerned that they do not have enough bulls resulting in a smaller calf crop.
Alternative solutions- Purchase more bulls or implement an artificial insemination program.
Evaluate alternatives- The Smith’s can purchase more bulls decreasing the cow- to-bull ratio or they can begin to artificially inseminate a portion or all of the herd. Cost, time and labor all need to be looked at when comparing the two alternatives.
Make a decision consistent with goals- The Smith’s goal is to have a 90% calf crop. Decide weather to purchase more bulls or begin an AI program.
Put decision into effect. The Smith’s will either purchase more bulls or they will begin to use an AI program at breeding time.
Evaluate and accept the consequences- Did the Smith’s reach their goal of a 90% calf crop. If they did not they will have to accept that consequence.