UNIVERSITY OF SOUTHERN MINDANAO

FUNCTIONAL AREAS OF
MANAGEMENT AND MANAGERIAL
ROLES OF AGRI-PRENEUR
JENNET R. MAG-ASO, PhD
Department of Agricultural Economics
College of Business Development Economics and Management
University of Southern Mindanao
Kabacan, Cotabato
Farm Management

• Farm Management is defined as the

science and process by which scarce
resources are allocated and situations are
manipulated by the farm managers in
trying, with less than full information, to
achieve household-specified objectives.

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 Elements of Farm Management

1.Farm management is a systematic knowledge-base practice.

2.It recognizes the fact that resources (land, labor and capital)
are limited and must be optimized.
3.Farm management requires the active role of farm managers
rather than being merely reactive to situations.
4.Farm managers have to face a possible environment of
asymmetrical information and must be decisive in taking
advantage of every opportunity.
5.A farm manager’s goal is not always to maximize profit.
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 Other Objectives of a Farmers
1. Expand Production
2. Increase sales
3. Minimize costs
4. Generate a minimum level of profit that is stable
5. Ensure a stable supply of food for the family
6. Avoid debt
7. Achieve a satisfactory standard of living
8. Reduce the risks involved in farming
9. Transfer the farm to the next generation

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 CHARACTERISTICS OF FARMING

1. Home and farm business are integrated.

2. Functions of management and ownership are combined.
3. Most farms are small business units
4. Farm products are not easily standardized
5. Farmer’s control over production is limited
6. Demand and supply of farm products are inelastic
7. Farming is subject to great risks
8. Financing farming is a difficult task
9. Farming can be done by less-educated persons
10.Fixed costs are usually high.
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 CHARACTERISTICS OF A DESIRED FARM

1.Fertility of the land

2.Topography
3.Improvements
4.Farm Lay-out
5.Weeds and stumps
6.Location of Farm
7.Taxes
8.The community
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 PROBLEMS IN FARMING

1.Lack of or inadequate current information

2.Response to institutional changes
3.Risks
4.Choice of proper alternatives
5.Proper combination of fixed and variables
factors
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 ESSENTIAL FUNCTIONS OF FARM MANAGEMENT

• Management is comprised of a series of management

functions that are usually segregated into planning,
organizing, staffing, leading, directing, controlling,
motivating and decision-making.
• The functions of farm management have been
simplified into five distinct categories. These includes
diagnosis, planning, implementation, monitoring
and evaluation

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Functions of Farm Management

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Diagnosis

•Diagnosis is the process of analyzing

the current situation of the farm and
its enterprises, and identifying
constraints and opportunities to
increase profitability.

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Planning

• Planning is the process of establishing objectives

and suitable courses of action before taking action.
• It includes short-term, day-to-day tactical planning,
and long-term strategic planning.
• It generally starts with the identification of
thelong-term goals of the business. Once the goals
have been established, short term objectives that
would contribute to the attainment of the overall
goals are formulated.
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• Sub-functions:
1.Production Planning : A farmer has to decide
what products to produce, the quantities that
will be produced, and the most appropriate
technology to use
2.Finance Planning: The farmer has to examine
all the sources of capital, and decide how much
capital is required, when it is needed, which
source should be used, and how and when it has
to be repaid.
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• Sub-functions:
3.Market Planning: Ensure that farm products
to be produced have available markets at the
time of sale.

➢The farmer should determine the type and quality

of product to be produced, as well as the timing
of sale. Where and to whom to sell the farm
produce, and at what prices also need to be
decided.
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• Sub-functions:
4.Staff Planning: deemed more important in large,
commercial farms than in small farms since family labor is
mostly utilized in the latter.
➢In staff planning in large, commercial farms, the following
factors need to be taken into account.
➢These are the number of staff needed, the skills that will
be necessary, and the availability of farm workers, the
degree of responsibility assigned to each worker, wages,
and other labor remunerations to be provided.

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 Implementation
• Implementation is the process of acquiring the resources
necessary to put the plan into effect and overseeing the
entire process.
Sub-functions:
1.Production: The farm manager or the farmer has to make
tactical decisions involving the timing of farm operations,
technique of farm operations, adjustments within production
processes (e.g., seeding rates, fertilizer levels and feed
concentrate usage), and adjustments to production
processes (e.g., shifting to a higher-priced vegetable crop).
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 Implementation
• Sub-functions:
2.Financing: the farm manager or the farmer has to
see to it that sufficient capital is deployed in
accordance with the plan and allocated to those
activities which produce the greatest benefit to the
farm business. With the financial resources available to
the organization, a farm manager starts to purchase
the assets, inputs, and materials necessary for the
farm operation.
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 Implementation
• Sub-functions:
3.Marketing: Involves in moving the product from point of
production to poit of consumption.
4.Staffing: Involves the hiring of personnel for specific jobs in
the farm. In small-scale farming operations, staffing may be
limited to hiring contractual farm workers for activities such
as land preparation at the start of the planting season or for
harvesting during the harvest season. The use of family labor
is a common practice in the Philippine agricultural setting.

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 D.Control: Monitoring and Evaluation

•Controlling is the process of ensuring that

actual activities conform to planned
activities.
• A manager performs the control function as he/she
monitors the performance of the farm
organization, compares it with the targets that
he/she has set and takes action to correct the
performance that deviates from the set standards.
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 D.Control: Monitoring and Evaluation

•Monitoring is the process of scrutinizing

the progress of some change in the farming
pattern and checking on the whole system
over time.
• Monitoring also serves as a tool for evaluating the
physical and financial performance of the farm
business.

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 D.Control: Monitoring and Evaluation
• Evaluation is the process of assessing the outcomes and
impact of the farm business and involves making
comparisons of the farm business over time and between
farms.
• The results of monitoring are used as inputs in making
decisions on the day-to-day activities of the farm, while the
results of evaluation are used to identify the strengths and
weaknesses of the farm business and provide useful
information for the preparation of a better farm plan and
budget for the next production cycle.
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 D.Control: Monitoring and Evaluation

• Implicit in monitoring and evaluation functions

or the control function is the need for a system
of recording and reporting information which
can be used as input to the measurement of
performance.
• The information generated through the control
function can, thus, be used to revise current and
short-term plans or adjust long term goals.
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 Some Government Programs & Interventions to Promote
Agricultural Entrepreneurship in the Philippines

1. Agricultural Credit and Financing Programs:

➢The government provided financial support to
farmers and agricultural entrepreneurs through
programs like the Agricultural Credit Policy Council
(ACPC) and the Agricultural Guarantee Fund Pool
(AGFP). These programs offered credit and
insurance to help farmers access capital for their
agricultural ventures.

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 Some Government Programs & Interventions to Promote
Agricultural Entrepreneurship in the Philippines

2. Farm Business Schools: The Department

of Agriculture (DA) initiated the Farm
Business School (FBS) program to enhance
the business and entrepreneurial skills of
farmers and agripreneurs. FBSs provided
training on farm management, financial
literacy, and marketing strategies.
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 Some Government Programs & Interventions to Promote
Agricultural Entrepreneurship in the Philippines

3. Agribusiness Support for Promotion and

Investment in Regional Expo (ASPIRE): ASPIRE
was a program that aimed to promote
agribusiness investment and entrepreneurship in
different regions of the Philippines. It involved
trade fairs, investment forums, and business
matching events to connect investors with local
agribusinesses.
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 Some Government Programs & Interventions to Promote
Agricultural Entrepreneurship in the Philippines

4. Fertilizer Subsidy Programs: The

government subsidized the cost of fertilizers
to make them more affordable for farmers.
These subsidies were intended to increase
agricultural productivity and support the
income of agricultural entrepreneurs.

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 Some Government Programs & Interventions to Promote
Agricultural Entrepreneurship in the Philippines

5. Farm-to-Market Roads Development:

Infrastructure development, including the
construction and improvement of farm-to-
market roads, aimed to reduce post-harvest
losses, improve access to markets, and
support agricultural entrepreneurship in
rural areas.
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 Some Government Programs & Interventions to Promote
Agricultural Entrepreneurship in the Philippines

6. Agricultural Training and Extension Services:

The DA provided training and extension services
to farmers and agripreneurs to enhance their
skills and knowledge in modern agricultural
practices, technology adoption, and crop
diversification.

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 Some Government Programs & Interventions to Promote
Agricultural Entrepreneurship in the Philippines

7. Crop Insurance Programs: The

Philippine Crop Insurance Corporation
(PCIC) offered crop insurance to protect
farmers and agricultural entrepreneurs
from losses due to natural calamities,
pest outbreaks, and other risks.

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 Some Government Programs & Interventions to Promote
Agricultural Entrepreneurship in the Philippines

8. Market Linkage and Promotion: Various

initiatives were implemented to connect
agricultural entrepreneurs with markets,
both domestic and international. These
efforts included participation in trade fairs,
market information systems, and the
promotion of value-added products.
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 Some Government Programs & Interventions to Promote
Agricultural Entrepreneurship in the Philippines

9. Youth in Agriculture Programs: The

government aimed to encourage young
people to engage in agriculture by providing
support and incentives, including grants,
training programs, and access to credit.

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 Some Government Programs & Interventions to Promote
Agricultural Entrepreneurship in the Philippines

10. Cooperative Development: Promoting and

strengthening agricultural cooperatives was a
strategy to improve the bargaining power of
small-scale farmers and agripreneurs, enabling
them to access resources and markets more
effectively.

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ThaNk You