AGRIBUSINESS MANAGEMENT f
f (ABVM 211) f
FARM MANAGEMENT
f
f (4 ECTS)
f
COMPILEDfBY:
MILKESSAfTEMESGENf(M.Sc.)
ZERIHUNfNIGUSSIEf(M.Sc.)
JULY,f2012
,AGRIBUSINESSfMANAGEMENT:fffffffffffffffffffffffffffffffFARMfMANAGEMENT
Topicfone:ffConceptsfoffFarmfManagementfandfDecisionfMakingf
Definitions:
Farmfmanagementfisfafsciencefthatfdealsfwithfthefproperfcombinationfandfoperationfoffproducti
onffactorsfincludingfland,flaborfandfcapital,fandfthefchoicefoffcropfandflivestockfenterprisesftofbri
ngfaboutfthefmaximumfandfcontinuousfreturnftofthefmostfelementaryfoperationalfunitsfofffarming
.
Farmfmanagementfasfafsubjectfmatterfisfthefapplicationfoffagriculturalfscience,fbusinessfandfec
onomicfprinciplesfinffarmingffromfthefpointfoffviewfoffanfindividualffarmer.fThefprinciplesfmayfs
ervefasfafguidelinefforfcollectingfandfusingfrequisitefinformationfforfrationalfdecisionfmaking.fTh
eyfalsofprovidefafsetfofftoolsfforfthefpreparationfofffarmfbudgetsfandfproductionfprograms.f
Farmfmanagementfcanfalsofbefdefinedfasfafsub-
branchfoffagriculturalfeconomicsfwhichfdealsfwithfdecisionfmakingfonftheforganizationfandfoper
ationfoffaffarmfforfsecuringfmaximumfandfcontinuousfnetfincomefconsistentfwithfthefwelfarefofff
armffamily.f
Thisfdefinitionfbestffitsftheftwofaspectsfofffarmflifefbyfprovidingfanfareafoffcommonfgroundfforfth
eirfclosefinter-
relationshipfinfthefdirectionfoffmaximizingfprofitfandfutilityffunctionsffromfthefoutputfofftheffarm
fasfafwhole.f
Thus,finfsimplefwords,ffarmfmanagementfcanfbefdefinedfasfafsciencefwhichfdealsfwithfjudiciousf
decisionsfonfthefusefoffscarceffarmfresources,fhavingfalternativefusesftofobtainfthefmaximumfprof
itfandffamilyfsatisfactionfonfafcontinuousfbasisffromftheffarmfasfafwholefandfunderfsoundffarming
fprograms.fFarm fmanagementfseeksftofhelpftheffarmerfinfdecidingfproblemsflike:
• Whatftofproduce?f(e.g.fselectionfoffprofitablefenterprises)
• Howfmuchftofproduce?f(e.gffresourcefuseflevel)
• HowftofProduce?f(e.g.fselectionfoffleastfcostfproductionfmethod)
• Whenftofbuyfandfwhenftofsell,fandfinforganizationfandfmanagerialfproblemsfrelatingftofthe
sefdecisions.f
Infotherfwords,fFarmfManagementftriesftofanswerfthefbasicfeconomicfquestionsfrelatedftofafgive
nffarmfconditions.fThus,fFarmfmanagementfmayfinfshortfbefcalledfafsciencefoffdecision-
makingforfsciencefoffchoicefinffarmfbusiness.fThefneedfforfitfarisesfoutfoffchangesfinftheffarmfcon
ditionsfasfwellfasfchangesfoccurringfoutsidefofftheffarm,fandfhencefneedfoffcontinuousfadjustmen
tfofffarmfoperationsftofthesefchangesfbecomesfinevitable.fThefprincipalfchangesffrequentlyfenco
unteredfbyftheffarmersfare:ffluctuationsfinfprice,fvariationsfinfweather,finventionsfinffarmingfmet
hods,fandfchangesfinfsocio-
economicfenvironmentfincludingfchangesfinfgovernmentfpolicyfandfsocialfresponsesfandfvalues.
f
1.1fPreliminaryfConcepts
2
,AGRIBUSINESSfMANAGEMENT:fffffffffffffffffffffffffffffffFARMfMANAGEMENT
Agriculturefdefinedfasfthefsumftotalfoffthefpracticesfoffcropfandflivestockfproductionfonfindivid
ualffarms.fHence,fthefagriculturalfproductionfoffcountryfisfthefsumfoffcontributionsfoffthefindivid
ualffarmfunits,fandfthefdevelopmentfoffagriculturefmeansfthefsumfoffdevelopmentsfoffmillionsfoff
farmfunits.f
Farmfdefined:fAffarmfisfthefsmallestfunitfoffagriculturefwhichfmayfconsistfoffoneforfmorefplotsfc
ultivatedfbyfoneffarmerforfgroupfofffarmersfinfcommonfforfraisingfcropfandflivestockfenterprise.fI
tfisfbothfafproducingfunitfasfwellfasfafconsumingfunit.f
Familyffarm:fAffamilyfholdingf(farm)fmayfbefdefinedfbrieflyfasfbeingfequivalent,faccordingftoft
heflocalfconditionsfandfunderfthefexistingfconditionsftoftechnique,feitherftofafploughfunitforftofafw
orkfunitfforfaffamilyfoffaveragefsize.
FarmfFirm:fTheffarmfisfaffirmfbecausefproductionfisforganizedfforfprofitfmaximization.fHence,f
itfisfafbusinessfunitfoffcontrolfoverffactorsfoffproduction.fOnfthefotherfhand,fitfisfafhouseholdfunitfd
emandingfmaximumfsatisfactionfofftheffarmffamily.fThefmanagerfofftheffarmfcomesftofunderstan
dftheftwinfobjectivesfbyflinkingfonefwithfthefother.
Stockfandfflowfinputs:fStockfinputsfarefresourcesfwhichfarefconsumedfduringfthefproductionfpe
riod,flikefseeds,ffertilizers,fpesticidesfandftheflike.fTheyfcanfbefstored,fiffnotfusedfcurrently,fforffu
turefuse.fAsfagainstfthis,fflowfinputsflikeflaborfandfmanagement,fiffnotfused,fcannotfbefstoredfforft
hefnextfseason.
ManagementfoffFarmfvs.fFarmfManagement:fGenerallyfspeaking,fmanagementfofffarmfaimsf
atfmaximizingfproductionfinfthefspherefoffagronomy,fwhereas,ffarmfmanagementfisfconcernedfw
ithfmaximizingfprofitfinfthefrealmfoffagriculturalfeconomics.f
Economicfunit:fItfisfthefsumfoffresourcesfforfwhichfcosts,freturnsfandfnetfincomefcanfbefworkedf
out.fAsfsuch,faffarmfisfanfeconomicfunit.
Thefveryfconceptfofffarmfmanagementfhasfaffascinatingfappealftofthefmankind,fasftherefisfnotfafsi
nglefcreedfwhichfisfnotfaffectedfbyfthisfbread-
butterfsubject.fItfisfthefstudyfofffarmer,fasfafproducerfofffoodfandfotherfrawfmaterials,fwhofoccupi
esfafstrategicfpositionfinfthefeconomicflifefoffafcountry.fPolitically,ffarmersftogetherfexertfafconsi
derablefinfluencefonftheftypefoffgovernmentftheyflikefinfthefdevelopingfcountries.f
Farmfmanagementfinvestigationsfgivefthrustfandfdirectionftoffarmfbusinessfimprovementfbyfpro
vidingfusefulfinformationftofplanners,ffarmersfandfextensionfworkers.fBetterfunderstandingfoffth
efsequentialfflowfoffnewftechnologyfisfprovidedfbyffarmfmanagementfresearchfthatfcontributesfto
fmorefrealisticfprojectionfoffproductionfpotential.fAgain, fbasicfinformationfprovidedfbyffarmfma
nagementfstudiesfonfspecificffarmfprojects,fsuchfasflandfreclamation,fsettlement,firrigationfandfd
rainage,fservesfasfanfaidftofformulatingfnationalfpolicies.fFarmfmanagementfhasfanfinherentfcapa
cityfoffdevelopingfstrategicfapproachesftofmakingfthefbestfusefoffscarcefresourcesfand,fasfsuch,fca
nfviewfthefthreatsfandfproblemsfthatfliefaheadfasfveiledfopportunitiesfforfshowingfitsfpotentialfasf
onefoffthefnation’ sfsaviors.fHence,ftherefisfboundftofbeffarfgreaterfawarenessfandfunderstandingf
offthefrolefofffarmfmanagementfinfthefnation’ sfeconomy.
3
, AGRIBUSINESSfMANAGEMENT:fffffffffffffffffffffffffffffffFARMfMANAGEMENT
1.2fNaturefandfCharacteristicsfoffFarmfManagement
Farmfmanagementfisfbasicallyfbothfanfappliedfandfpurefscience.fItfisfafpurefsciencefbecausefitfdea
lsfwithfthefcollection,fanalysisfandfexplanationfofffactorsfandfthefdiscoveryfoffprinciplesf(theory).
fItfisfanfappliedfsciencefbecausefthefascertainmentsfandfsolutionsfofffarmfmanagement fproblems f(
technology)farefwithinfitsfscope.fFarmfmanagementfsciencefhasftheffollowingfdistinguishingfcha
racteristicsffromfotherffieldsfoffagriculturalfsciences.f
1. Practicalfscience:fItfisfafpracticalfscience,fbecausefwhilefdealingfwithftheffactorsfoffotherfph
ysicalfandfbiologicalfsciences,fitfaimsfatftestingfthefapplicabilityfoffthoseffactsfandffindingsfa
ndfshowingfhowftofputfthesefresultsftofusefonfafgivenffarmfsituations.fAffarmerfhasftofselectfaf
methodfwhichfisfmorefpracticablefandfeconomicalftofhisfparticularffarmfsituationftakingfinto
fconsideration fthefvolumefoffworkfandffinancial fimplications.
2. Profitabilityforiented:fFarmfmanagementfisfinterestedfinfprofitabilityf(considersfthefcostsfi
nvolvedfinfproducingfeachfunitfoffoutputfinfrelationftofreturns).fBiologicalffieldsfsuchfasfagr
onomyfandfplantfbreedingfconcernfthemselvesfwithfdistainingfthefmaximumfyieldfperfunitfir
respectivefoffthefprofitabilityfoffinputsfused.fFarmfmanagementfisfinterestedfinfoptimumfres
ults/yieldsfwhichfmayfnotfnecessarilyfcoincidefwithfthefmaximumfproductionfpoint.fInfbrief
,fwhenfotherfsciencesfdealfwithfphysicalfefficiency,ffarmfmanagementfdealsfwithfeconomicf
efficiency.f
3. Integratingfscienceforfinterdisciplinaryfscience:fTheffactsfandffindingsfoffotherfsciencesf
arefcoordinatedfforfthefsolutionfoffvariousfproblemsfoffindividualffarmersfwithfthefviewfoffa
chievingfdesiredfgoals.fItfinvolvesfdifferentfdisciplinesftofdecisionfmaking.fItfconsidersftheff
indingsfoffotherfsciencesfinfreachingfitsfownfconclusions.fPrinciplesfofffarmfmanagementfin
tegratefresultsfbyfphysicalfsciencesfunderfspecificfsetfoffconditions.
4. Broaderffield:fItfusesfmorefthanfonefdisciplineftofmakefdecisions.fItfgathersfknowledgeffro
mfmanyfotherfsciencesfforfmakingfdecisionfandffarmfmanagementfspecialistsfhaveftofknowft
hefbroadfprinciplesfoffallfotherfconcernedfsciencesfinfadditionftofspecializationfinfthefbusine
ssfprinciplesfofffarmfmanagement.f
5. Micro-
approach:fInffarmfmanagement,feveryffarmfunitfisfconsideredfasfuniquefinftermsfoffavailab
lefresources,fproblemsfandfpotentialities.fItfrecognizesfthatfnoftwoffarmsfarefexactlyfidentica
lfwithfrespectftofsoil,fotherfproductionfresources,ffarmers’ fmanagerialfability,fetc.fEachffar
mfunitfhasftofbe,ftherefore,fstudied,fguidedforfplannedfindividually.f
6. Farmfunitfasfafwhole:fInffarmfmanagementfanalysis,faffarmfasfafwholefisfconsideredftofbeft
hefunitfforfmakingfdecisionsfbecausefthefobjectivefisftofmaximizefthefreturnsffromfthefwhole
ffarmfinsteadfoffonlyfimprovingfthefreturnsffrom fafparticularfenterpriseforfpractice. fFarmfma
nagementfconsidersfallfpossiblefaspectsfoffcropfandflivestockfenterprisesfoffafgivenffarm.fTh
efprinciplesfofffarmfmanagement,fthus,fhelpftofgetfthefoptimumfenterprisefmixfthatfwouldfyi
eldfthefhighestfincomeftoftheffarmerffromftheftotalffarmforganization.f
1.3fObjectivesfandfScopefoffFarmfManagement
4
f (ABVM 211) f
FARM MANAGEMENT
f
f (4 ECTS)
f
COMPILEDfBY:
MILKESSAfTEMESGENf(M.Sc.)
ZERIHUNfNIGUSSIEf(M.Sc.)
JULY,f2012
,AGRIBUSINESSfMANAGEMENT:fffffffffffffffffffffffffffffffFARMfMANAGEMENT
Topicfone:ffConceptsfoffFarmfManagementfandfDecisionfMakingf
Definitions:
Farmfmanagementfisfafsciencefthatfdealsfwithfthefproperfcombinationfandfoperationfoffproducti
onffactorsfincludingfland,flaborfandfcapital,fandfthefchoicefoffcropfandflivestockfenterprisesftofbri
ngfaboutfthefmaximumfandfcontinuousfreturnftofthefmostfelementaryfoperationalfunitsfofffarming
.
Farmfmanagementfasfafsubjectfmatterfisfthefapplicationfoffagriculturalfscience,fbusinessfandfec
onomicfprinciplesfinffarmingffromfthefpointfoffviewfoffanfindividualffarmer.fThefprinciplesfmayfs
ervefasfafguidelinefforfcollectingfandfusingfrequisitefinformationfforfrationalfdecisionfmaking.fTh
eyfalsofprovidefafsetfofftoolsfforfthefpreparationfofffarmfbudgetsfandfproductionfprograms.f
Farmfmanagementfcanfalsofbefdefinedfasfafsub-
branchfoffagriculturalfeconomicsfwhichfdealsfwithfdecisionfmakingfonftheforganizationfandfoper
ationfoffaffarmfforfsecuringfmaximumfandfcontinuousfnetfincomefconsistentfwithfthefwelfarefofff
armffamily.f
Thisfdefinitionfbestffitsftheftwofaspectsfofffarmflifefbyfprovidingfanfareafoffcommonfgroundfforfth
eirfclosefinter-
relationshipfinfthefdirectionfoffmaximizingfprofitfandfutilityffunctionsffromfthefoutputfofftheffarm
fasfafwhole.f
Thus,finfsimplefwords,ffarmfmanagementfcanfbefdefinedfasfafsciencefwhichfdealsfwithfjudiciousf
decisionsfonfthefusefoffscarceffarmfresources,fhavingfalternativefusesftofobtainfthefmaximumfprof
itfandffamilyfsatisfactionfonfafcontinuousfbasisffromftheffarmfasfafwholefandfunderfsoundffarming
fprograms.fFarm fmanagementfseeksftofhelpftheffarmerfinfdecidingfproblemsflike:
• Whatftofproduce?f(e.g.fselectionfoffprofitablefenterprises)
• Howfmuchftofproduce?f(e.gffresourcefuseflevel)
• HowftofProduce?f(e.g.fselectionfoffleastfcostfproductionfmethod)
• Whenftofbuyfandfwhenftofsell,fandfinforganizationfandfmanagerialfproblemsfrelatingftofthe
sefdecisions.f
Infotherfwords,fFarmfManagementftriesftofanswerfthefbasicfeconomicfquestionsfrelatedftofafgive
nffarmfconditions.fThus,fFarmfmanagementfmayfinfshortfbefcalledfafsciencefoffdecision-
makingforfsciencefoffchoicefinffarmfbusiness.fThefneedfforfitfarisesfoutfoffchangesfinftheffarmfcon
ditionsfasfwellfasfchangesfoccurringfoutsidefofftheffarm,fandfhencefneedfoffcontinuousfadjustmen
tfofffarmfoperationsftofthesefchangesfbecomesfinevitable.fThefprincipalfchangesffrequentlyfenco
unteredfbyftheffarmersfare:ffluctuationsfinfprice,fvariationsfinfweather,finventionsfinffarmingfmet
hods,fandfchangesfinfsocio-
economicfenvironmentfincludingfchangesfinfgovernmentfpolicyfandfsocialfresponsesfandfvalues.
f
1.1fPreliminaryfConcepts
2
,AGRIBUSINESSfMANAGEMENT:fffffffffffffffffffffffffffffffFARMfMANAGEMENT
Agriculturefdefinedfasfthefsumftotalfoffthefpracticesfoffcropfandflivestockfproductionfonfindivid
ualffarms.fHence,fthefagriculturalfproductionfoffcountryfisfthefsumfoffcontributionsfoffthefindivid
ualffarmfunits,fandfthefdevelopmentfoffagriculturefmeansfthefsumfoffdevelopmentsfoffmillionsfoff
farmfunits.f
Farmfdefined:fAffarmfisfthefsmallestfunitfoffagriculturefwhichfmayfconsistfoffoneforfmorefplotsfc
ultivatedfbyfoneffarmerforfgroupfofffarmersfinfcommonfforfraisingfcropfandflivestockfenterprise.fI
tfisfbothfafproducingfunitfasfwellfasfafconsumingfunit.f
Familyffarm:fAffamilyfholdingf(farm)fmayfbefdefinedfbrieflyfasfbeingfequivalent,faccordingftoft
heflocalfconditionsfandfunderfthefexistingfconditionsftoftechnique,feitherftofafploughfunitforftofafw
orkfunitfforfaffamilyfoffaveragefsize.
FarmfFirm:fTheffarmfisfaffirmfbecausefproductionfisforganizedfforfprofitfmaximization.fHence,f
itfisfafbusinessfunitfoffcontrolfoverffactorsfoffproduction.fOnfthefotherfhand,fitfisfafhouseholdfunitfd
emandingfmaximumfsatisfactionfofftheffarmffamily.fThefmanagerfofftheffarmfcomesftofunderstan
dftheftwinfobjectivesfbyflinkingfonefwithfthefother.
Stockfandfflowfinputs:fStockfinputsfarefresourcesfwhichfarefconsumedfduringfthefproductionfpe
riod,flikefseeds,ffertilizers,fpesticidesfandftheflike.fTheyfcanfbefstored,fiffnotfusedfcurrently,fforffu
turefuse.fAsfagainstfthis,fflowfinputsflikeflaborfandfmanagement,fiffnotfused,fcannotfbefstoredfforft
hefnextfseason.
ManagementfoffFarmfvs.fFarmfManagement:fGenerallyfspeaking,fmanagementfofffarmfaimsf
atfmaximizingfproductionfinfthefspherefoffagronomy,fwhereas,ffarmfmanagementfisfconcernedfw
ithfmaximizingfprofitfinfthefrealmfoffagriculturalfeconomics.f
Economicfunit:fItfisfthefsumfoffresourcesfforfwhichfcosts,freturnsfandfnetfincomefcanfbefworkedf
out.fAsfsuch,faffarmfisfanfeconomicfunit.
Thefveryfconceptfofffarmfmanagementfhasfaffascinatingfappealftofthefmankind,fasftherefisfnotfafsi
nglefcreedfwhichfisfnotfaffectedfbyfthisfbread-
butterfsubject.fItfisfthefstudyfofffarmer,fasfafproducerfofffoodfandfotherfrawfmaterials,fwhofoccupi
esfafstrategicfpositionfinfthefeconomicflifefoffafcountry.fPolitically,ffarmersftogetherfexertfafconsi
derablefinfluencefonftheftypefoffgovernmentftheyflikefinfthefdevelopingfcountries.f
Farmfmanagementfinvestigationsfgivefthrustfandfdirectionftoffarmfbusinessfimprovementfbyfpro
vidingfusefulfinformationftofplanners,ffarmersfandfextensionfworkers.fBetterfunderstandingfoffth
efsequentialfflowfoffnewftechnologyfisfprovidedfbyffarmfmanagementfresearchfthatfcontributesfto
fmorefrealisticfprojectionfoffproductionfpotential.fAgain, fbasicfinformationfprovidedfbyffarmfma
nagementfstudiesfonfspecificffarmfprojects,fsuchfasflandfreclamation,fsettlement,firrigationfandfd
rainage,fservesfasfanfaidftofformulatingfnationalfpolicies.fFarmfmanagementfhasfanfinherentfcapa
cityfoffdevelopingfstrategicfapproachesftofmakingfthefbestfusefoffscarcefresourcesfand,fasfsuch,fca
nfviewfthefthreatsfandfproblemsfthatfliefaheadfasfveiledfopportunitiesfforfshowingfitsfpotentialfasf
onefoffthefnation’ sfsaviors.fHence,ftherefisfboundftofbeffarfgreaterfawarenessfandfunderstandingf
offthefrolefofffarmfmanagementfinfthefnation’ sfeconomy.
3
, AGRIBUSINESSfMANAGEMENT:fffffffffffffffffffffffffffffffFARMfMANAGEMENT
1.2fNaturefandfCharacteristicsfoffFarmfManagement
Farmfmanagementfisfbasicallyfbothfanfappliedfandfpurefscience.fItfisfafpurefsciencefbecausefitfdea
lsfwithfthefcollection,fanalysisfandfexplanationfofffactorsfandfthefdiscoveryfoffprinciplesf(theory).
fItfisfanfappliedfsciencefbecausefthefascertainmentsfandfsolutionsfofffarmfmanagement fproblems f(
technology)farefwithinfitsfscope.fFarmfmanagementfsciencefhasftheffollowingfdistinguishingfcha
racteristicsffromfotherffieldsfoffagriculturalfsciences.f
1. Practicalfscience:fItfisfafpracticalfscience,fbecausefwhilefdealingfwithftheffactorsfoffotherfph
ysicalfandfbiologicalfsciences,fitfaimsfatftestingfthefapplicabilityfoffthoseffactsfandffindingsfa
ndfshowingfhowftofputfthesefresultsftofusefonfafgivenffarmfsituations.fAffarmerfhasftofselectfaf
methodfwhichfisfmorefpracticablefandfeconomicalftofhisfparticularffarmfsituationftakingfinto
fconsideration fthefvolumefoffworkfandffinancial fimplications.
2. Profitabilityforiented:fFarmfmanagementfisfinterestedfinfprofitabilityf(considersfthefcostsfi
nvolvedfinfproducingfeachfunitfoffoutputfinfrelationftofreturns).fBiologicalffieldsfsuchfasfagr
onomyfandfplantfbreedingfconcernfthemselvesfwithfdistainingfthefmaximumfyieldfperfunitfir
respectivefoffthefprofitabilityfoffinputsfused.fFarmfmanagementfisfinterestedfinfoptimumfres
ults/yieldsfwhichfmayfnotfnecessarilyfcoincidefwithfthefmaximumfproductionfpoint.fInfbrief
,fwhenfotherfsciencesfdealfwithfphysicalfefficiency,ffarmfmanagementfdealsfwithfeconomicf
efficiency.f
3. Integratingfscienceforfinterdisciplinaryfscience:fTheffactsfandffindingsfoffotherfsciencesf
arefcoordinatedfforfthefsolutionfoffvariousfproblemsfoffindividualffarmersfwithfthefviewfoffa
chievingfdesiredfgoals.fItfinvolvesfdifferentfdisciplinesftofdecisionfmaking.fItfconsidersftheff
indingsfoffotherfsciencesfinfreachingfitsfownfconclusions.fPrinciplesfofffarmfmanagementfin
tegratefresultsfbyfphysicalfsciencesfunderfspecificfsetfoffconditions.
4. Broaderffield:fItfusesfmorefthanfonefdisciplineftofmakefdecisions.fItfgathersfknowledgeffro
mfmanyfotherfsciencesfforfmakingfdecisionfandffarmfmanagementfspecialistsfhaveftofknowft
hefbroadfprinciplesfoffallfotherfconcernedfsciencesfinfadditionftofspecializationfinfthefbusine
ssfprinciplesfofffarmfmanagement.f
5. Micro-
approach:fInffarmfmanagement,feveryffarmfunitfisfconsideredfasfuniquefinftermsfoffavailab
lefresources,fproblemsfandfpotentialities.fItfrecognizesfthatfnoftwoffarmsfarefexactlyfidentica
lfwithfrespectftofsoil,fotherfproductionfresources,ffarmers’ fmanagerialfability,fetc.fEachffar
mfunitfhasftofbe,ftherefore,fstudied,fguidedforfplannedfindividually.f
6. Farmfunitfasfafwhole:fInffarmfmanagementfanalysis,faffarmfasfafwholefisfconsideredftofbeft
hefunitfforfmakingfdecisionsfbecausefthefobjectivefisftofmaximizefthefreturnsffromfthefwhole
ffarmfinsteadfoffonlyfimprovingfthefreturnsffrom fafparticularfenterpriseforfpractice. fFarmfma
nagementfconsidersfallfpossiblefaspectsfoffcropfandflivestockfenterprisesfoffafgivenffarm.fTh
efprinciplesfofffarmfmanagement,fthus,fhelpftofgetfthefoptimumfenterprisefmixfthatfwouldfyi
eldfthefhighestfincomeftoftheffarmerffromftheftotalffarmforganization.f
1.3fObjectivesfandfScopefoffFarmfManagement
4
