Farm and agribusiness management

Farm and agribusiness management is described as making good economic decisions in an industry characterized by large and ever-present changes. Strategic planning and human resource management are crucial components of farm and agribusiness management. The terms risk and uncertainty are defined and explained. Futures markets are a common form of risk management by agribusiness firms. This chapter provides examples of hedging and commodity options. Agricultural finance is introduced by investigating the opportunity cost of time, the time value of money, compounding, and discounting money flows. Net present value, a useful tool used to value projects, investments, and firms, is presented.