Definition: Agricultural business management is the decision-making process.

through which certain resources are distributed among a certain number of alternatives with the
purpose of organizing, directing and controlling the business, in such a way that the objectives are achieved
have been outlined. Although this definition is extensive, it identifies the administrative activities
from the producers of the agricultural sector, as will be seen later (Kay 1986). That definition
suggests that management is an activity that includes problem solving and decision making
decisions.

There are many ways to classify the problems that the manager must face.
agricultural company. With the aim of simplifying and organizing the proposals that are going to
In this text, the problems will be grouped into four categories: (a) problems of
organization for production, which includes those related to the method of obtaining the
land, what to produce, what scale of production to choose, what equipment to select and what technology
It should be applied; (b) financial problems, that is to say those related to obtaining and using capital
(own and borrowed); (c) administrative problems, that is, those that are essentially related to
with the typical function of administration: planning, organization, execution and control; (d)
marketing problems: what to buy, what to sell, where to sell or buy, when to do it, to
who to buy from, who to sell to, how to buy, how to sell.

Planning

it could be defined as the selection of future acts that seem most appropriate to produce the
desired results. It is accepted that planning is a methodology for decision making
decisions. Since the decision involves a selection between two or more alternatives, it could be
Add that planning is a methodology for selecting alternatives. The function of
planning contains a certain number of stages that include the identification and definition of
problem and the identification of alternative solutions. Planning can be done
simultaneously for a certain number of problems. This requires the administrator to have a
In this text, at least two of these concepts are employed, since by organization of the
Agricultural company is understood as the grouping of several administrative units to carry out
completing the established plans and maintaining relationships between executives and employees. That is to say that
It is about a structure with which operational and administrative tasks are carried out, through
the division of labor. the ability to locate information that is useful in solving
more than one problem at a time. Planning is a continuous process in that
Information available inside or outside the penn system to identify new issues.
new information obtained from the control function provides feedback from
planning, which is why it becomes an important stage of the overall system.

Organization

This text employs at least two of these concepts, since by organization of the
Agro-industrial company refers to the grouping of several administrative units to carry out
fulfill the established plans and maintain the relationships between executives and employees. That is to say that
It is a structure through which operational and administrative tasks are carried out, by means of
the division of labor.

Execution

The execution consists of carrying out or putting into operation the chosen plans. Once this is done,
complete the planning and organization process, the best alternative must be selected and
put it into operation. This presupposes that there are resources to buy, lease, or reorganize and,
In addition, to develop certain details and work schemes. Execution requires other functions.
such as the coordination, direction, and supervision of the needs for land, labor, and
capital over a specified period of time.

Control

The control function consists of establishing standards, comparing the results obtained with
they and make the necessary adjustments to achieve the established objectives.

Due to changes in prices or other factors, the results obtained after the
the plan was executed, they may deviate from the originally expected results. This is due to the
uncertainty and the risk that exists in agricultural production; however, it is necessary to identify
the type and magnitude of the deviations as soon as possible. That information can be used
to maintain the plans and desired results, within an acceptable range.

A good control system requires a secure records system and good skill to
using them. Lacking detailed records is like sailing a ship without a compass; there is no way to
to know where you are, where you are going to go, or how long it will take to reach the goal.

Natural resources

Natural resources are provided by nature; they have a great influence on choice.
of the production sectors, according to Brevis and Jolly (1970). Three types of resources are recognized
natural: land, water, and climate.

Earth

The concept includes air and light, as well as soil nutrients. The land is,
therefore, variable in quality for agricultural purposes, due to its nature, topography, fertility,
permeability, depth, and level of erosion. This variation in turn allows the land to be used for
different crops. Any change in fertility, slope, depth,
permeability or erosion determines a different agricultural use. All these variations affect
yields imply certain management and soil conservation practices.
Some authors classify land as capital. This is because it is a scarce factor and valuable.
wholesale or retail provided by human effort, and according to its quality and
accessibility to markets. On the other hand, its possession means a means of saving and investment.
Landowners expect to receive compensation equal to or greater than that received if the
savings would have been invested in another type of real estate or activity.

Water

Water is another resource whose availability conditions what can be produced, which is why
It is necessary to know, on one hand, the specific water requirements of the different crops and,
on the other hand, the availabilities in the different times of the agricultural year.

Climate

The different crops have very specific times for sowing and harvesting. Those times
are marked by certain water and temperature needs for normal development of
plants and animals.

2. Human resources

Traditionally, these resources are provided by the farmer and their family, in the case of the
family-type businesses. The estate worker is also an important human resource.
the plantation worker, the expert, the agricultural engineer, the veterinarian, the animal scientist. In the
new types of associative companies that have emerged as a result of the reform processes
In some Latin American countries, the work is provided by the peasants who
they form the company. It is understood by farmers, "those low-income people who derive
its subsistence of the rural sector

The peasant has a double responsibility: that which arises from the contribution of
manual work that involves carrying out a physical task and another of a business type that
it means making decisions about what, how, and how much to produce, as well as determining the system of
exploitation (community, mixed, or individual) that will be adopted. That decision area extends
also to the organization of work in the company, to the supply of inputs and food, and to
the marketing of the products. Thus arises the need to train farmers in
this area, so that they can address the new functions that arise with the implementation of
the agrarian reform programs.

3. Capital Resources

Capital is the set of goods produced by man that assist in the process of
production. The agricultural capital of the agricultural company consists of machinery, equipment,
buildings, facilities, livestock, and inventory. In a broad sense, it could be considered as 'a
monetary representation of the physical inputs used in agriculture" (Kay 1986).

Investment capital

It consists of land and improvements. Improvements from direct investments are those assets
indissolubly incorporated into the land that cannot be valued separately from the value of the
land, such as drainage, irrigation works, leveling, and uprooting.
Agricultural improvements are the permanent investments that are attached to the land and that
they can be valued separately, but cannot be physically removed without causing damage. They can be
active or passive. The activities are those that have plant life and constitute assets.
productive activities linked to the land for more than one agricultural season, such as plantations
permanent fruit, forestry, and forage crops. Passive agricultural improvements are the goods
properties that do not produce by themselves but contribute to production, such as the
constructions and installations.

Operating capital

It is made up of fixed working capital and circulating working capital. The capital of
fixed operation corresponds to movable assets that aid in production or produce by themselves
the same and have a duration longer than an agricultural cycle. It can be stable (machinery,
tools, implements, equipment) or live (animals, both those that provide income from sales as
the work and production ones).

Working capital is that which has a duration not exceeding an agricultural cycle.
loses its identity and causes cash accounting movements, such as salaries, seeds,
fertilizers, pesticides, fattening livestock, freight, taxes, and fuels.