Farm Business Management: Monitoring Enterprise Performance Flashcards
How is a whole farm budget used as a performance measure?
Farmers utilise a farm budget for various reasons. Farm budgets allow the farmers to determine if they are making any profit or if they’re losing money. Through this, enterprises can be compared to determine which are most profitable for the new year and which aren’t. Adjustments can also be also be made upon evaluating the farm budget. It is essentially a planning tool for farmers.
What does the ‘farm problem’ refer to?
“Go big or go home”, is the catchphrase that is commonly referred to when the farm problem arises. Basically, if the farm isn’t producing big - making a huge profit, then the farm will simply not be able to compete due to incoming larger companies. But as farms go big, companies are coming in and buying it causing smaller/local businesses to be driven out due to the lack of labour. This also allows for cheap labour to come in, leaving locals stranded for jobs and the community will eventually die.
