Business administration and country farming encompasses every aspect of managing an effective agricultural enterprise. It involves identifying consumer demands that the farm is uniquely positioned to meet, and determining the best way to combine the basic resources (land and labor, as well as capital) to maximize the return. It is also about making decisions which balance social, economic and environmental factors as well as solving agritourism and regulatory challenges.
Finding an innovative idea and developing and practicing an “elevator pitch” are essential first steps in becoming an Agribusiness leader. The next step is to develop a plan that describes how to bring the idea real. Then, you must identify and analyze the risks to agribusiness that could impact the plan. Find an option for financing that will meet your requirements.
In addition to planning for the future of the farm, good farm managers are constantly trying to determine the effectiveness of current practices, as well as evaluating new technology. They should be able to get and interpret information in a short time. This could be inputs from other farmers, extension staff as well as private agribusiness companies researchers, research staff and other friends. They must also possess the ability to think in a creative manner, and carry out small-scale experiments.
Budgets are a key tool in analyzing a farm’s business, but high levels of variation can affect their reliability. Therefore, budgets should be supplemented with probability distributions my link of weather events and prices. This will enable the administrator to assess the risk and evaluate the impact of various alternatives.