Farm Business Management

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University contact person:  Annie Kinwa-Muzinga

Information from related Farm Business Management Events:

Contest Purpose:  This event is designed to test the participant's understanding of basic economic principles essential in the successful management of a farm business.

Objectives:

  1. To provide high school agriculture students with farming or farm business interests a practical experience that will help them make analysis an decisions in the management of a farm.
  2. To develop students' understanding of basic economic principles.
  3. To develop students' skills in analysis, computation and decision-making.
  4. To provide experience in individual as well as group decision-making activities related to the management of a farm.

Event format:

Emphasis will be placed on analytical procedures rather than recall of specific facts.  Among other things, contestants will be expected to know how to keep and analyze net worth, farm earnings, and cash flow statement of a case farm; use of partial budgeting to evaluate purchase versus lease and other options, and determine the proper use of credit.  Contestants should be familiar with the use of economic principles, logic to determine the proper combination of resources (capital, labor, land and management) for enterprises (dairy, swine, corn, etc.), and the economic relationships between resources and enterprises.  Some understanding of agricultural programs and their effects upon individual farmers will also be expected.  Basic commodity trading terms will be used.

The contest will consist of an individual written exam plus a group team activity. Students are reminded that calculators may be used.  The rules for the contest are explained below.

  1. Each team can have four members.
  2. The team score will be the total of the scores of the top three of the four team members.
  3. Each team member must write an individual paper.
  4. Each individual must work independently of other members of the team.
  5. No books or other sources of information shall be used during the contest.
  6. Failure to comply with the above provisions will subject the team to disqualification.
  7. Calculators may be used.
  8. The maximum possible individual score is 100 points; the maximum possible team score is 300 points.
  9. Each question is 2 points.
  10. Time limit is 90 minutes.
  11. Put answers on answer sheet.