Country farm and business management encompasses all aspects of running a successful agricultural enterprise. It includes identifying consumer needs that the farm is uniquely placed to satisfy and determining how to combine basic resources (land, labor and capital) to maximize profits. It is also about making choices that are a balance of social, economic and environmental considerations, as well as addressing regulatory and agritourism challenges.
Developing an innovative big idea and preparing and executing an “elevator pitch” are the initial steps to becoming an Agribusiness leader. The next step is to develop a business plan that outlines the steps to make the big idea become a reality. Determine and analyze the agribusiness risks that could affect your plan. Find the financing solution that best suits the needs explanation of your operation.
In addition to planning for the future, effective farm managers are constantly working to evaluate the efficacy of current practices and evaluating the effectiveness of new technology. They must be able to access and interpret data quickly. This could include inputs from extension workers, other farmers, private agribusiness companies, research workers, libraries and friends. They should also be able think creatively and conduct mini-trial and error experiments.
Budgets are an essential tool to analyze the farm’s operations, however their reliability can be hampered by the large degree of variability. Therefore, budgets should be complemented by probability distributions for weather events and prices. This way, the risk to the operator can be assessed and the impact of different alternatives can be more effectively analyzed.