The business of farm management involves all the decisions that go into organizing and operating a farm for profit. It draws on agricultural economics for price information, markets, policies, and leasing. It also draws on animal and plant sciences for information on soils, seeds, insects, weeds, and fertilizer. Additionally, rations and breeding, machinery, irrigation, and human behavior are considerations.
Each farm differs from another, so the concern is always the individual farm and the plan. The problems that can arise from farm management can vary from issues on a family farm to farms that are managed by the state.
A typical farm in the U.S. is about 400 acres and managed by two full-time individuals. To reach a decent income, it requires operating on an increasing scale of output and specialization. Therefore, top management concerns are size of operation, specialties, finance, methods, and choice of farming system.
The size of a farm business provides an indication of its profit potential. It’s measured by total acres, man-work hours, livestock kept, and total cash receipts. Acreage does not, however, specify if the land is hilly, swampy, or otherwise unproductive.
The amount of farm land is pretty much fixed, so farmers may buy or even rent additional acres. This increases output and is a way to reduce costs per unit. Livestock is counted by the head. There are other ways to increase volume like bringing undeveloped pasture into the farm plan, while using more aggressive cultivation methods.
The farm manager has to make sure that the crops will grow well and a market can be found. Farmers use financial tools to manage their business – profit and loss statements and cash-flow statements. They utilize these tools to know outstanding debts, equity in the business, and if the farm is liquid and solvent.
Enterprise Resource Planning is software that allows businesses to collect and manage data. ERP for framing is used by agribusiness and contract farmers. This helps to minimize data management concerns.
Secure access is available anytime, because it is Internet based. Farmers can manage procurement and supply, even for multiple farms. Farm ERP can be customized to achieve these direct goals. It can also provide needed information to help manage multiple tasks such as inventory and accounting.
Farm ERP can help reduce risk with ease in recording data and traceable systems that are accurate. It improves cash flow management; information goes from monitoring systems that allow farmers to access the progress on produce and the farming area. It reduces material and labor costs, and reduces compliance costs. The farming business is difficult to manage and can be daunting without help. ERP provides the solutions that farmers need in order to be successful.
Integrating a farm ERP creates new opportunities and evolves the farms’ management style. Farmers can minimize waste, as well as inaccuracy in harvesting processes using bar code systems. Farm facilities management can implement activities to create growth in the business and community. Farming is a complex task and has strict requirements. ERP helps to streamline these requirements which would otherwise be a challenge. ERP can also investigate agri-food companies to streamline processes as well.
Farm management and en ERP system can provide a comprehensive service for farmers, including managing facilities and fleet. An ERP system can determine short and long-term goals, as well as which are most important to the overall plan – increased income, management continuity, or improved crop marketing. Based on the farming goals, day to day operations can be effectively managed while keeping them up to date about agricultural changes that could affect business. An evaluation can be done to get a handle on available resources from soil to buildings.
Farming is a full-time job and farmers devote their time and energy into managing their crops. ERP software has the capability of developing daily and yearly marketing plans. Specific sales goals are established that are meant to place them into the top of the market sales range. It’s more than just farm management but it is developing a long-lasting, viable business through the use of Enterprise Resource Planning.