This is written before the drought monitor report was issued for this week. Depending on where you are, you received some substantial precipitation the week to very little. Even in our area that received heavy rains, we were in extreme drought so while conditions may have improved, we all need much mor rain. The six to ten day forecast (May 25 to 29) indicates a 40 to 50% chance of leaning above normal for temperatures and a 33 to 50% chance of leaning above normal for precipitation. The eight to fourteen-day forecast indicates (May 27 to June 2) indicates a 40 to 50% chance of leaning above normal for temperatures and a 33 to 50% chance of leaning above normal for precipitation.
First and foremost, and no matter how much someone in agriculture is connected with growing and producing things, it is a business. Agriculture is an extremely complex business where a great deal of money passes through and with complicated bookkeeping, USDA programs, and tax structures. Along with this are many ancillary businesses from co-ops and ag services to marketing and banking/credit associations. Today, the importance of a background in ag business whether on the farm; dealing with input costs; marketing crops. How a two-year in Agriculture Business Management is a valuable tool in farming and ranching.
路 Production agriculture, both crops and livestock, requires a broad range of skills to be successful and stay in business. One skill often overlooked, and not just in agriculture, is the business skill needed to survive a difficult economic landscape; make it through the challenging financial times; and thrive during the good times while preparing for the down times. That鈥檚 where knowledge in not only business in general, but ag business specifically enters the picture.
路 First, on the basic business side, a producer needs to be able to read a spreadsheet and understand what it means. A basic understanding of micro- and even macro- economics, supply and demand, and profit maximization. It鈥檚 not that a producer will necessarily keep their own books or file their own taxes but need to make sure everything is correct.
路 On the ag side, understanding how ag economics is similar and different from other businesses. They have to consider all the options in marketing crops and livestock. Add in dealing with financial institutions with operating loans and land purchases. And to top it off, whether a producer or in ag business at a co-op or a lending institution, a basic understanding of crops, soils, and livestock allows for good decisions.