Business administration and country farming encompasses every aspect of running an agricultural business that is successful. It includes identifying consumer needs that the farm is uniquely positioned to meet, and determining the best way to combine the basic resources (land, labor and capital) to maximize profits. It is also about making decisions that take into account social, economic and environmental aspects, as well as taking care of agritourism-related regulatory issues.
Developing an innovative big idea, and then preparing an “elevator pitch” are essential initial steps to becoming an Agribusiness leader. The next step is to create a business plan that describes how to turn the big idea become a reality. Find out and analyze the agribusiness risks that could impact your strategy. Find the financing solution that best suits the needs of your business.
Good farm managers continuously look at new technologies and determine the efficacy of current practices. They also prepare for the future. They must be able to gather and interpret information. This could include inputs from extension workers, other farmers, private agribusiness companies, research workers, libraries and their friends. They must also be able to think imaginatively as well as conduct mini-trial and errors experiments.
Budgets are a key tool in analyzing a farm’s business, but high degrees of variability can limit their reliability. Budgets must be complemented by probability distributions for weather events as well as price. This way, risk to the company is assessed and the impact of different options can be more effectively analyzed.