Country Farm and Business Management
BMS main challenges of farm business planning
Country farm and business management encompasses all aspects of managing an agricultural business that is successful. It involves identifying consumer demands that the farm is uniquely positioned to meet and determining how to combine the basic resources (land, labor and capital) to maximize profits. It also involves making decisions that balance environmental, economic and social considerations and addressing issues related to Agritourism and regulations.
To become an agribusiness expert first, you need to come up with an innovative big idea. You should also write and practice an „elevator speech“. The next step is to create a business plan that explains how to transform the big idea into a reality. Analyze and identify the agribusiness risk that could affect your plan. Find a financing option that meets your requirements.
Good farm managers continuously examine new technologies and evaluate the effectiveness of existing practices. They also make plans for the future. They must be able to get and interpret information in a short time. This could include inputs by extension staff, other farmers, private agribusiness firms researchers, friends and colleagues. They should also be able to think in a creative manner and conduct mini-trial and error experiments.
Budgets are an important tool for analyzing the farm’s business, but large variations in their frequency can affect their reliability. Budgets should be supplemented with probability distributions of weather events and price. This will allow the operator to evaluate the risk and assess the impact of the different options.