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FACTORS OF PRODUCTION IN FARM MANAGEMENT

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					FACTORS OF PRODUCTION
IN FARM MANAGEMENT



    CLIL Project
Farm management

 Farm management focuses on the business
   aspects of running a farm.

 The farmer makes decisions and choices to
   organize and operate a farm.

 Decisions and choices are necessary to
  improve the farm production and profit.
Farm management

Types of farm manager :

  individual farmer on a family-operated farm
  a landowner
  farm manager for a large-scale commercial
  farm / a co-operative
Farm management

 The farmer organizes the factors of production
   on his / her farm.

 The farmer uses 3 things to produce goods.
   LAND
   LABOUR
   CAPITAL
LAND

 the place where the farmer performs all
   farming activities

 Land includes:
    surface area
    soil
    water
LABOUR

Labour is used for producing economic goods.

Labour includes:

     workers       their skills and judgement

  their work
CAPITAL

    The amount of material resources and
      money used for producing goods.

    Capital on a farm includes:
      tools and machinery
                                   ASSETS
      raw materials

       money          to finance necessary
                      work / for investment
The entrepreneur

 a landowner      a tenant    a farm manager

   The entrepreneur (the farmer) organizes
           the factors of production
           (land, labour and capital)



       to produce and sell goods.
ENTERPRISE


   3 factors of production (things)
        land      labour          capital


   1 factor of production (man)
                  enterprise
Land Capital Labour

The total number of hectares on the farm is used
  to describe farm size.

Capital replaces labour when large sophisticated
 machines do the work of several men using
 simple tools.

Production is organised to meet quantity, quality
  and timing requirements.
A farm manager       (1)




    plans farming operations on the farm land
      crop cultivation
      livestock raising

    organizes the work of :
      servicing machinery
      maintaining buildings          capital
      storing crops
A farm manager            (2)




hires and supervises workers            labour

Workers (employees) perform the daily production
 tasks.

  manual work : workers, seasonal workers
  non-farming occupations : farm machinery operators /
  bookkeepers / agricultural experts
A farm manager           (3)



 analyses
   the farm’s relation of debts to assets
   the resources of the farm

 plans the use of the farm resources
    decides strategies
    monitors the outcome
A farm manager              (4)




   keeps records for management and tax
     purpose in a business plan.

   A business plan is a written document.
   It is an organized collection of :
       annual goal statements
       resource inventories
       marketing / production / financial plans.
A farm manager                (5)



faces the following risks:

the influence of natural environment on agricultural
   production
  weather (drought, storms, too much rainfall)
  diseases and pests

the fluctuation of agricultural market
  price changes

				
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posted:9/6/2011
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