MODERN FARMING MANAGEMENT

1.1 Introduction Farm management is a branch of agricultural economics that studies how agricultural production resources are managed effectively and efficiently to achieve specific economic goals (Soekartawi, 2006; Kay, Edwards, & Duffy, 2016). In the context of Indonesian agriculture, which is dominated by small- and medium-scale farming businesses, farming is no longer understood solely as crop or livestock production activities, but rather as a business unit that requires systematic planning, organization, implementation, and control (Dillon & Hardaker, 1993). Thus, farmers play a key role in determining input combinations, technology implementation, and marketing strategies to increase the income and welfare of farming households (Soekartawi, 2006). Developments in the global economic environment, climate change, fluctuating commodity prices, and increasing market competition have all impacted the dynamics of Indonesia's agricultural sector (FAO, 2017). These conditions demand a more modern management approach to farm management. Traditional approaches that rely solely on habit and experience are considered increasingly incapable of addressing the complexity of these challenges (Mosher, 1987). Therefore, modern farm management emphasizes the use of economic analysis, production data, and market information as a basis for decision-making to improve resource efficiency while minimizing farm risks (Debertin, 2012; Hardaker et al.,2015).