Introduction to Agribusiness - Farming Operations

This set of flashcards covers key concepts and definitions related to farm management and profitability as discussed in the lecture on Farming Operations.

What are the main factors of production needed by farmers?

Land, water, labor, and capital.

What is the primary concern of farm management?

To maximize profits from farm operations.

How do farmers transform inputs into outputs?

Through the interaction of natural resources and man-made factors.

What is profitability in the context of farm management?

The ability of a business to earn a profit after paying all expenses.

What are the economic decisions in farm management?

What to produce, how to produce, how much to produce, when to buy and sell.

How is profit calculated in farm operations?

Profit = Revenue - Costs. (P = R - C)

What components make up a farm enterprise?

Crops and Livestock production. Additionally, it includes land, labor, capital, and management inputs.

What is the importance of enterprise selection in farming?

It ensures that the mix of production activities works efficiently together.

How is revenue calculated?

Revenue = Price of the product x Quantity sold.

In what way does good management impact farm profits?

Good management will increase profits by optimizing resources and costs.