Pros of Farm Management

Farm business management has assumed greater importance not only in developed and

Commercial agriculture all round the world but also in developing and subsistence type of

agriculture. A farm manager must not only understand different methods of agricultural

Production, but also he must be concerned with their costs and returns. He must know how

to allocate scarce productive resources on the farm business to meet his goals and at the same

time react to economic forces that arise from both within and outside the farm.

The need for managing an individual farm arises due to the following reasons:

i) Farmers have the twin objectives, viz., maximization of farm profit and improvement

of standard of living of their families.

ii) The means available to achieve the objectives, i.e., the factors of production, are

scarce in supply.

iii) The farm profit is influenced by biological, technological, social, economic, political

and institutional factors.

iv) The resources or factors of production can be put to alternative uses.

Farm management is concerned with resource allocation. On one hand, a farmer has a set of

That is relatively scarce. On the other hand, the farmer has a set of goals or objectives to achieve

may be maximum family satisfaction through increasing net farm income and employment

generation. In between these two ends, the farmer himself is with a specific degree of ability and

awareness. This gap is bridged by taking a series of rational decisions in respect of farm resources

having alternative uses and opportunities.

Regards,
Angelina Matthew,

Journal Coordinator,

Aaron Province