Farm and business Management (FBM), is the practice where you coordinate all aspects of your farming operation to maximize income and profit. A broad set of skills and knowledge is used in this process including planning, management, economic analysis and marketing.

Key practices in the management of a farm or business include

Marketing – selling your products or services; financing – loans to finance your operation; risk management – ensuring that your operation is safe from disasters.

Financial – creating pro-forma budgets and actual enterprise plans to help forecast revenue and expenses; calculating financial ratios; setting goals.

Write down your plan for achieving your goals. This will help you think through the various functions in your business, and identify weaknesses.

Next, you’ll want to determine if you have zoning regulations or if you are allowed to produce certain products on your land. Check with the township or county to determine if there is any restriction and how it might affect your plan.

You will also require adequate public facilities such as parking, signage and customer service. These facilities are required to accommodate visitors and customers to your farm/ranch.

Ultimately, your business will need to be self-sustaining and a viable source of income. This means you must have enough off-farm revenue to cover your expenses and save for your future business.

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