Summary: This text was developed for the first course in Farm Management, typically taken by a junior/senior level student. It was designed to introduce students to the key concepts on how to effectively manage a farm business. The fifth edition provides students with the basic information needed to measure management performance, financial progress, and the financial condition of the farm business. Edition/Copyright: 5TH 04
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New to This Edition
Dr. Patricia Duffy from Auburn University joins as a third author for this edition. She has considerable experience teaching farm management and other agricultural economics courses and is familiar with previous editions of this text. Dr. Duffy has contributed not only to specific chapters in the text, but also did the PowerPoints that are available online for instructors.
More emphasis on Strategic Planning in chapter 1
Much of the material in the fourth edition's instructor manual has been updated and moved to the text's fifth edition web site. An electronic PowerPoint presentation covering each chapter, a test bank, and answers to the end of chapter questions will be provided online. www.mhhe.com/kay5e
- "Chapter Objectives", "Chapter Summaries", as well as "Questions for review" are helpful learning tools for students.
- As with the previous edition, this book is divided into five parts. Part One begins with the chapter "Farm Management in the Twenty-first Century". It describes some of the forces and technology, which are driving the changes we see in agriculture. We hope that by reading this chapter students will find both an incentive to study farm management and an appreciation for the management skills modern farm managers must have or acquire. Part One concludes with an explanation of the concept of management and the decision-making process with an increased emphasis on the importance of strategic decision-making.
- Part Two presents the basic information needed to measure management performance, financial progress, and the financial condition of the farm business. It discusses how to collect and organize accounting data and how to construct and analyze balance sheets and income statements. In response to several suggestions, income tax depreciation (MACRS) has been added to the chapter on depreciation methods and asset valuation.
- As in the fourth edition, Part Three contains three chapters on basic microeconomic principles and four on budgeting and planning tools. The topics in this part provide the basic tools needed to make good management decisions. Students will learn how and when economic principles can be used in management decision-making along with the importance of the different types of economic costs. The discussion of economies of size has been revised and expanded. Practical use of budgeting is emphasized in the chapters on enterprise, partial, whole farm, and cash flow budgets. An expanded discussion on using sensitivity analysis with partial budgets has been added and linear programming is covered in more detail than in previous editions.
- Topics necessary to increase a manager's decision-making skills are included in Part Four. Farm business organization, analyzing investments, managing risk, income tax management, and whole farm business analysis are discussed. The chapter on income tax management has been updated with the latest changes available. Data from an actual farm is now used to demonstrate the analysis process in the chapter on whole farm business analysis. The chapter on investment analysis includes a new discussion of the concepts of annual equivalent and capital recovery values.
- Part Five discusses the management alternatives and decisions related to acquiring the resources needed on farms and ranches. This part includes chapters on capital and credit, land, human resources, and machinery. The human resource chapter includes new sections on improving managerial capacity and bridging the cultural barriers that may be encountered in managing agricultural labor.
Publisher: McGraw-Hill Publishing Company