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

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 • 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: e-mail 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.