Center for Commercial Agriculture

July 27, 2019

Assessment of Management Skills

by Michael Langemeier

Assessing management skills is an important part of benchmarking farm performance and figuring out where improvements may be needed. If the operators on the farm identify management areas which are not currently being addressed, they will need to determine whether someone is going to get up to speed with regard to these areas or outside help is going to be sought to address weaknesses.

ARTICLES WITHIN PUBLICATION:

Assessing Production Management Skills

September 15, 2018

Productivity growth is a function of changes in input use, technical change, and technical efficiency change.

Assessing Financial Management Skills

December 15, 2018

Utilizing key performance indicators is an important ingredient in creating an environment that stresses continuous improvement.

Assessing Management Practice Skills

February 15, 2019

Management practice skills help ensure that the business is running smoothly and are helpful in the development of a business plan.

Assessing Personnel Management Skills

April 15, 2019

Personnel management skills help ensure that all individuals in the organization understand their roles, be trained to perform them, and work effectively as a team.

Assessing Procurement and Marketing Skills

May 15, 2019

Failing to develop a marketing plan may lead to a situation in which the farm only sells their products when they need liquidity.

Assessing Relationship Management and Leadership Skills

June 5, 2019

As farms continue to grow, relationship management and leadership skills will become increasingly important.

Assessing Risk Management Skills

June 30, 2019

Risk management involves optimizing expected returns given the risks involved.

Assessing Strategic Positioning Skills

July 27, 2019

Strategic direction involves thinking about whether the farm is going to focus on a commodity based strategy or a differentiated product strategy.

TAGS:

business planning, labor, risk

TEAM LINKS:

Michael Langemeier

RELATED RESOURCES

U.S. Farm Sector Capital Expenditures

December 6, 2022

In response to relatively strong net farm income during the last three years, real capital expenditures have increased approximately 32 percent. Whether capital expenditures continue to increase depends on future net farm income prospects as well as factors such as interest rates, machinery inventories, and machinery and building prices.

U.S. Farm Sector Financial Performance

November 1, 2022

Metrics that can be used to measure farm profitability include earnings before interest, taxes, and amortization (EBITA), net farm income, the operating profit margin ratio, return on assets, and return on equity. Each of these measures has its advantages and disadvantages. This article examines trends in net farm income and return on assets and its components for the U.S. farm sector.

Crop Budget Spreadsheet

October 25, 2022

This spreadsheet can be used along with the Purdue Crop Cost & Return Guide to examine gross revenue, costs, and earnings for crop enterprises. The user can evaluate up to three full-season crops, and the wheat double-crop soybean system.

Top Farmer Conference 2023

January 6, 2023

A management programs geared specifically for farmers. Surrounded by farm management, farm policy, agricultural finance and marketing experts, and a group of your peers, the conference will stimulate your thinking about agriculture’s future and how you can position your farm to be successful in the years ahead.

Monthly Corn & Soybean Outlook Webinar Series

Webinar each month following USDA’s release of the updated World Agricultural Supply and Demand Estimates (WASDE). Catch the next monthly update on December 19th for the corn and soybean outlook following release of USDA’s December Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports. Registration is free.

November Corn & Soybean Outlook Update

November 11, 2022

Recorded November 11 | Purdue ag economists discussed USDA’s November Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports and the current corn and soybean outlook.

Comparing Net Returns for Alternative Leasing Agreements

September 2, 2022

Obtaining control of land through leasing has a long history in the United States. Leases on agricultural land are strongly influenced by local custom and tradition. However, in most areas, landowners and operators can choose from several types of lease arrangements. With crop share arrangements, crop production and often government payments and crop insurance indemnity payments are shared between the landowner and operator. These arrangements also involve the sharing of at least a portion of crop expenses. Fixed cash rent arrangements, as the name implies, provide landowners with a fixed payment per year. Flexible cash lease arrangements provide a base cash rent plus a bonus which typically represents a share of gross revenue in excess of a certain base value. Each leasing arrangement has advantages and disadvantages.

Indiana Farmland Prices Grow at Record Pace in 2022

August 10, 2022

It is safe to say that the last year was unlike any other in recent memory. The COVID-19 pandemic caused significant disruption to our lives and the global economy. Surprisingly, many of the current economic forces put upward pressure on farmland prices.

See What Others Like >>