Farm and ranch management set
questions n answers
horizontal integration - correct answer ✔✔Consolidation of ownership and control within one
stage of the food system, or a similar output product.
eg: farm acquisition for similar products - increases farm size - economies of size
vertical integration - correct answer ✔✔linking firms / farms at more than one stage of the food
chain, such as upstream suppliers or downstream buyers.
eg: A dairy farm acquiring a hay farm enterprise
: A poultry farm acquiring a grain farm for feed
farm management - correct answer ✔✔A complicated, demanding task surrounded by
-uncertainties
-demands
-changing conditions
in a very competitive environment
characteristics of top flight performers - correct answer ✔✔-Natural resource managers:
Adapt production strategies to their natural resource base
-Top line production managers and decision makers
-Financials beyond tax compliance:
Use accountants for something other than just tax management
Manage for financial success (ratios and analysis)
-People managers
, Good with employees, customers, and FAMILY!
labor saving technology, economic opportunities, economies of size, technology - correct
answer ✔✔Structure of Farms: Why the change?
Super Commodity, Traditional Commodity, Value Added - correct answer ✔✔Types of farm
organizations (3)
Super Commodity - correct answer ✔✔-$1.5 million plus in revenue
-Prime natural resource base
-Control assets vs ownership
-Multiple entities (ag and commercial)
-Multiple family and outside partners
-Sophisticated information database
-Link consumption to production
Traditional Commodity - correct answer ✔✔-$500K to $660 K in revenue
-Passion to carry on the farm family legacy
-10% grow to $600K to $1.5 Million
-30% scale down to lifestylers
-30% exit
-30% focus on efficiency v/s growth
Value Added - correct answer ✔✔-Business exploits location, production. Servicing, -branding
or system.
-Focus on natural, local, organic
-Emerging energy, and natural resource products
questions n answers
horizontal integration - correct answer ✔✔Consolidation of ownership and control within one
stage of the food system, or a similar output product.
eg: farm acquisition for similar products - increases farm size - economies of size
vertical integration - correct answer ✔✔linking firms / farms at more than one stage of the food
chain, such as upstream suppliers or downstream buyers.
eg: A dairy farm acquiring a hay farm enterprise
: A poultry farm acquiring a grain farm for feed
farm management - correct answer ✔✔A complicated, demanding task surrounded by
-uncertainties
-demands
-changing conditions
in a very competitive environment
characteristics of top flight performers - correct answer ✔✔-Natural resource managers:
Adapt production strategies to their natural resource base
-Top line production managers and decision makers
-Financials beyond tax compliance:
Use accountants for something other than just tax management
Manage for financial success (ratios and analysis)
-People managers
, Good with employees, customers, and FAMILY!
labor saving technology, economic opportunities, economies of size, technology - correct
answer ✔✔Structure of Farms: Why the change?
Super Commodity, Traditional Commodity, Value Added - correct answer ✔✔Types of farm
organizations (3)
Super Commodity - correct answer ✔✔-$1.5 million plus in revenue
-Prime natural resource base
-Control assets vs ownership
-Multiple entities (ag and commercial)
-Multiple family and outside partners
-Sophisticated information database
-Link consumption to production
Traditional Commodity - correct answer ✔✔-$500K to $660 K in revenue
-Passion to carry on the farm family legacy
-10% grow to $600K to $1.5 Million
-30% scale down to lifestylers
-30% exit
-30% focus on efficiency v/s growth
Value Added - correct answer ✔✔-Business exploits location, production. Servicing, -branding
or system.
-Focus on natural, local, organic
-Emerging energy, and natural resource products
