1. Agribusiness includes all activities involved in food and fiber production from inputs to marketing. It provides jobs for millions and affects society through food production. 2. Managers are responsible for planning, organizing, staffing, leading, and controlling agribusinesses. They are compensated through salary, commission, benefits, and are accountable to owners, employees, customers and society. 3. Entrepreneurs start new agribusinesses by identifying opportunities and developing business plans to obtain resources and manage enterprises. Successful past entrepreneurs include John Deere, Cyrus McCormick, and Jon Kinzenbaw.

1. Agriculture Business Management Lesson 1: Introduction to Agribusiness Management

4. Theactivities are an intangible product.

6. Education

7. Engineering & Architecture

10. An input is a resource used in production, and an output is the result of the production process.

11. Production is the act of making products, such as goods and services.

12. 1. Without production agriculture, agribusiness would not exist.

13. Production agriculture is the use of land to produce goods.

14. There are approximately 2.3 billion acres of land in the United States.

17. It also provides jobs for millions of people.

20. Domestication of plants and animals for agricultural purposes allowed humans to settle in villages.

24. Grains, tobacco, cotton, and vegetables are examples of agricultural exports.

26. Imports are agricultural products brought into the United States from other countries.

29. Agriculture accounts for 17 percent of the gross domestic product.

30. Of this 17 percent, 13 percent comes from agriculture-related industries.

31. Examples of agriculture-related industries include feed mills and biotechnology firms.

33. The production efficiency of U.S. production agriculture, as compared to other countries, is enormous.

34. There are a number of ways to measure this efficiency.

36. In the early 1950s, one farm worker supplied less than 20 people with agricultural products.

37. 2. An increase in production efficiency has also helped the overall U.S. economy.

41. Both public and private agencies are responsible for the actions of the agriservices sector.

42. a. Public agriservicesare agricultural groups that provide services at the federal, state, and local levels.

43. Public agriservices specialize in education, research, communication, and regulation.

46. Roughly 90 percent of the food produced in the world is consumed in the country producing it.

47. 1. Trade of agricultural goods on a global basis has grown.

48. Trade lowers costs of agricultural goods and widens choices.

49. 2. Trade, along with aid and technology, can enlarge agriculture’s role in the global economy.

51. What are the Resources needed to Produce Agricultural Goods? Land: defined: soil, trees, minerals... value can often be changed quantity/type for farms vs. agribusiness trends: avg. farm size = 450 acres number of farms = _________ Labor: physical energy skills productivity (skills/motivation)

53. defined: wealth($)..man-made items ..trend toward higher % of total (technology, etc)

55. definition: art & science of combining resources and ideas to achieve the firm's goals.

56. Examples in History: a) earliest recorded: Moses b) Alexander the Great c) Julius Caesar

57. What are the Advancements in Agriculture Technology that impacted Management? interchangeable parts: Eli Whitney automatic conveyor: Oliver (1873) division of labor: Eli Root (for Sam Colt) scientific management: Frederick Taylor (father of scientific study)

58. What are the skills need to be an effective manager? technical: ability to perform specific tasks and have certain knowledge, math, accounting, etc. Conceptual: ability to see "big picture"..relative to the "parts“ human relations: leadership, motivation, coaching, morale building.....communication!

59. Business management has five major areas of activity Planning Organizing Staffing Leading controlling. What are the areas of activity of management?

60. What are the major planning activities of a manager? Planning is determining what is to be done in addition to where, how, and when it is to be done. Planning involves the development of mission statements, objectives, and long-term focus. The values and visions of the agribusiness are exhibited through the planning process. Management uses the planning function to determine the status of the business, evaluate proposed actions, state necessary actions and resources, and communicate effectively. The planning function is conducted on a day-to-day, year-to-year, and long-term basis.

61. What are the five major areas of business management? B. Organizing is the grouping together of activities, people, and other resources to establish a framework for the agribusiness. Organizing provides the agribusiness with structure, defines staff functions, and identifies relationships and authority. 1. An organization structure, if two or more people are involved in a business, is an internal framework. 2. An organizational structure identifies staff roles and activities required to accomplish business goals and objectives. The structure or chart should serve as a motivation factor, helping people reach career and personal goals. It also serves as a communication tool to help identify staff roles and authority. Without proper organization, it is difficult to carry out the planning function.

62. What are the five major areas of business management? C. Staffing is the activities involved with the recruitment, selection, evaluation, and training of personnel. The staffing process focuses on finding and keeping the right people to fit into the organizational framework, resulting in a profitable business. Planning and organizing activities help to determine the human resource needs for the agribusiness.

63. What are the five major areas of business management? 1. The staffing process involves recruiting, screening, interviewing, selecting, and training new employees. Staffing is a major part of the agribusiness. 2. Managers need to foresee vacancies and be prepared to fill job positions. Maintaining employees is also part of the staffing function. 3. The use of good communication, fair compensation, and opportunities for success are practices managers should use.

64. What are the five major areas of business management? D. Leading (also known as directing or actuating) is providing instruction, guidance, and motivation to employees for job completeness; it requires clear communication. 1. Motivation is the process of stimulating the behavior of people. It is primarily involved with the relationship between managers and employees.

65. What are the five major areas of business management? E. Controlling is handling all of the activities needed to make sure the business policies are being implemented. It focuses on actions taken and if they are meeting agribusiness expectations. 1. Managers evaluate the overall performance of the agribusiness. Then they correct, revise, and/or adjust methods to improve the results. 2. The controlling segment of business management allows for managers to achieve the desired results within the agribusiness.

66. What are the five major areas of business management?

67. Owner / shareholder board of directors Employees Customers Society To whom are Managers Responsible?

68. What are the Factors that create Changes or Adjustments in management? economic conditions consumer demands price relationships tax structure developments of other countries legal requirements Technology inflationary pressures availability of resources

69. Salary Commission Wage (hourly) Fringe benefits: sick leave maternity leave heath insurance overtime paid vacation company vehicle How are Managers Compensated for their Time and Efforts?

70. What are entrepreneurs, and what is their role in the U.S. economy? Entrepreneurs are people who start, manage, and operate their own business enterprises. A. Entrepreneurs, sometimes called innovators, have essentially created the U.S. economy by creating products and industries that have sparked franchises and enterprise development all over the world. Entrepreneurs are important for economic growth, which leads to a higher standard of living.

71. What is the entrepreneurial process? The entrepreneurial process involves all the activities, functions, and organizational processes of creating and designing an enterprise based on a perceived need or opportunity. The entrepreneurial process involves several important steps. A. The first part of the entrepreneurial process is to identify and analyze an opportunity to start or develop a business enterprise. B. The second step is to develop a business plan, which should include short-, intermediate-, and long-term goals for the business.

72. What is the entrepreneurial process? C. The third step is to evaluate needed resources and to determine how to obtain necessary resources that could include capital investments of money, equipment, machinery, buildings, land, or other necessary items.

73. What is the entrepreneurial process? D. The final step in the entrepreneurial process is the actual management of the enterprise that has been created. Once all aspects of the business are developed and resources are secured, effective and proper management of the enterprise is necessary for any potential future success.

74. What are some examples of successful past and current entrepreneurs in the agriculture industry? There are several important successful past and current entrepreneurs who have been important to the agriculture industry. A. Some of the most successful agricultural equipment and manufacturing companies were started by John Deere, Cyrus McCormick, and Jon Kinzenbaw. 1. John Deere developed the steel plow in 1837 and began his business, which became an international company. John Deere manufactures everything from small lawn equipment to construction and farming machinery.

75. What are some examples of successful past and current entrepreneurs in the agriculture industry? 2. Cyrus McCormick invented and developed the reaper in 1831. McCormick’s invention was important to farmers all over the world. 3. Jon Kinzenbaw is the founder of Kinze Manufacturing, Inc. Kinzenbaw started his business as a welding shop in 1965. Since then, Kinze Manufacturing, Inc. has been influential in the creation, modification, and improvement of auger carts and planters for the agriculture industry.

76. What are some examples of successful past and current entrepreneurs in the agriculture industry? B. Some of the most successful individuals and businesses related to seed and grain production, storage, and manufacturing are Pioneer Hi-Bred International, Inc.; Asgrow and DeKalb Seed; ADM; and Cargill.

77. What are some examples of successful past and current entrepreneurs in the agriculture industry? 1. Henry A. Wallace founded Pioneer Hi-Bred International, Inc. in 1926 because of his desire to improve seed genetics and yields for farmers. Pioneer Hi-Bred International, Inc. is a worldwide corporation that focuses on producing quality seed. 2. Asgrow and DeKalb Seed was originally known as the Everett B. Clark Seed Company and was founded in 1856. Asgrow and DeKalb strive to improve seed genetic technology for farmers across the nation and the world.

78. What are some examples of successful past and current entrepreneurs in the agriculture industry? 3. Archer Daniels Midland (ADM) was originally founded in 1902 by George A. Archer and John W. Daniels when they began their linseed-crushing business. In 1923, Archer-Daniels Linseed Company acquired Midland Linseed Products Company, and the Archer-Daniels-Midland Company was formed. Since its corporate inception, ADM has added a major profit center to its agribusiness each year. It is a worldwide company with more than 250 domestic and international plants.

79. What are some examples of successful past and current entrepreneurs in the agriculture industry? 4. Cargill was founded in 1865 by W.W. Cargill as the first grain storage facility in the United States. Cargill has grown to be one of the largest, privately-owned grain storage and manufacturing companies in the world.

80. What are some examples of successful past and current entrepreneurs in the agriculture industry? C. There are several successful livestock businesses and entrepreneurs. A few of those business include King Ranch in Texas and Christensen Family Farms. 1. Captain Richard King was a successful entrepreneur in the steamboat transportation industry before purchasing 15,500 acres of land in Texas for King Ranch. The ranch in Texas is known for creating the Santa Gertrudis breed of cattle and developing the Santa Cruz composite breed. King Ranch is also involved in the quarter horse industry in addition to farming operations with pecan and citrus production in Texas and Florida. They also produce cotton, milo, sod, and sugar cane.

81. What are some examples of successful past and current entrepreneurs in the agriculture industry? 2. Christensen Family Farms was started in 1974 by brothers Bob and Glen Christensen who purchased two bred gilts from a neighbor to start the business. Christensen Farms has operations in Minnesota, Iowa, Illinois, Nebraska, Colorado, and South Dakota. The company produces enough pork annually to feed 12 million people.

82. What are some examples of successful past and current entrepreneurs in the agriculture industry? D. Other successful entrepreneurs and businesses include agricultural sales companies. Some of the most successful businesses are Rural King, Tractor Supply Company, and Blain’s Farm and Fleet. 1. Rural King was founded in 1960 and has its main headquarters in Mattoon, Illinois. Rural King has 40 stores located throughout Illinois, Indiana, Kentucky, Tennessee, Ohio, and Michigan.

83. What are some examples of successful past and current entrepreneurs in the agriculture industry? 2. Originally founded by Charles E. Schmidt in 1938 as a mail-order business, Tractor Supply Company (TSC) is the largest retail chain of farm and ranch stores in the United States with more than 430 stores in 30 different states. Its main headquarters is located in Nashville, Tennessee. 3. Blain’s Farm and Fleet was founded in 1955 by brothers W.C. (Claude) Blain and N.B. (Bert) Blain. Blain’s Farm and Fleet has 34 stores located throughout Wisconsin, Illinois, and Iowa.