Farm Business Management: 101 Flashcards
Why do property values vary greatly?
- climate/water availability
- improvements
- carrying capactiy
- proximity to markets
What is total income?
The income earned from the sale of all produce and saleable products
What is net farm income?
Total income minus fixed costs minus variable cost (similar to profit)
What is total farm variable costs?
The sum of the farm’s variable cost
What are fixed costs?
The sum of all fixed or overhead costs which are the same (e.g. rates and taxes, insurance, administration, electricity, depreciation workers compensation)
What is management?
Administration of a business which a manager carries out
What is operators allowance?
The owner’s or manager’s salary
What is capital?
Money and accumulated wealth
What can variable costs do?
Change the size of production, i.e. fuel, seed/feed, labour, fertiliser, drenches, agent costs, stock, labour (casual) equipment replacement
What is gross margin?
Income minus variable costs
What are variable costs?
What I can control. It can change in a short time (e.g. telephone and gas bills, food, water bills)
What is income?
How much money you earn
What are fixed costs?
What I can’t control (e.g. body corporate fees, cost of the unit, furniture and appliances)
