ADMINISTRATION OF ENTERPRISES AGRICULTURAL

Objective

The program Agricultural Business Administration of the University Corporation

Lasallian ethical professional and competent manner to lead and manage the agricultural
sector organizations in the public and private sectors.

Occupational profile

Graduates of the undergraduate program in agricultural management is a competent

professional with strong ethics and human formation, with capacity for entrepreneurship
and making management decisions aimed at sustainable development of the agricultural
sector.

Occupational performance

Professional Agricultural Business Administration can perform any executive, technical

or administrative position in the rural sector, and in turn is able to start and run your
own business in the context of a globalized economy.
You can perform in the different administrative areas of companies in the rural sector:
human resources, finance, marketing and sales, production, logistics, quality control,
among others.

Also, it is able to route any of the following management areas: strategic management,
staff, planning, management, development and evaluation.

INTRODUCTION

Despite the development of macro economic indicators of non-agricultural sectors in

our country, the agricultural sector still retains its importance. The development of the
industrial sector is closely linked to the development in the agricultural sector. There
has been a continual improvement in agricultural infrastructure and agricultural
production since the proclamation of the Republic until today.

The increased income of agricultural enterprises depends mainly on good governance.

Business owners must adjust their income - spending levels correctly. When planning
their activities, they should take the current economic and social developments into
account, makes alternatives to ensure cash flow and take precautions to ensure the
success of your business activities.

The need for structural changes extends to all sectors of the economy. However, this
need is most felt in the rural sector. Structural changes in this sector are related to
institutional issues such as land tenure, credit, production and marketing of agricultural
products.

Many of these changes are made either by the initiative of farmers or promoted through
legislation that benefits them, by their own agencies or other means to allow the
government. Others are made by the state, through changes in the public sector that
affect economic, social and political environment in which agriculture takes place.
These two types of changes are interrelated and therefore require the intervention of
several disciplines, among which is the Administration for Production.

In this context the National University of Loja, through the Agricultural Area and
Renewable Natural Resources with Distance Learning mode tends to play a
fundamental role which is to develop students' skills, abilities, skills, abilities,
knowledge, values, among others, according to the reality of the social environment.
 The administration of the agricultural enterprise

The administration of modern agricultural enterprise to deliver results to ensure

profitable production requires efficient management backed gadgets and parameters that
gives us the Agricultural Economics as a science. Speaking of production profitability
means to achieve production levels that far exceed the costs of production, protected by
the maxim which states: "The higher production lower costs," and this is only achieved
when producing resources, they are applied with the greatest rationality this is accurate,
timely and efficient.

But let's talk about the mission and vision that should have all agricultural enterprise. In
the first case it must always be focused on productive activity, based on good
management, mechanization and modernization, in order to convert production
productivity through investment in sustainable return.

In the case of the vision, the approach should leave for sustainable development in time
and space, which means not only achieve high yields, but these, is to protect the
environment, biodiversity and especially humans.

The aim of the agricultural enterprise is to maximize and optimize their benefits, to
achieve this goal the combination of factors of production as needed: land, capital, labor
and business factor.

These resources can not produce themselves; for example, the earth can not produce
without the contribution of labor and capital. This is where is the main function of the
entrepreneur, and in this sense, the producer, has the task of combining the factors in the
appropriate proportions depending on the availability of each, and take the risks of
decisions.

Importantly, agricultural production has particular characteristics that differ from what
could be called nonagricultural by, such as: industry, services, etc., and these
differences are in three basic characteristics such as:

a) biological production process, which is working with plants and animals to which
their life cycles must be respected.

b) Production, which requires land not only as a support or physical space but as active
input.
c) Production that depends on the ecological conditions.

For all these reasons it can be concluded that the agricultural enterprise is a complex
system where many factors interact to achieve the objective.

Because of this it is necessary that the producer has the knowledge to interpret this
complex system is permanently trained and has the necessary time to gather
information, sort and analyze it. Management This is the most important tool you must
have the producer to conduct an agricultural enterprise. Therefore we can define that the
management of the agricultural enterprise involves all those elements linked to the
management and economic criteria. This definition has a broad meaning and
encompasses both the planning, decision making, implementation, monitoring and
evaluation.

Ie the administrative process of the agricultural enterprise involves a whole set of issues
that relate to the future, the present and the past. On the other hand, the stages of an
agricultural enterprise management are based on the analysis and diagnosis, planning,
decision making, implementation of the plan and results.

So how in order to become a successful entrepreneur, you must know how to generate
options, choosing good alternatives and integrate them in an orderly fashion to the
company.

Company Analysis The importance is that from a diagnosis can meet the economic and
financial situation of the company, know the factors of production available, explain the
reasons for the current situation and identify their problems and limitations.

This kind of analysis productive analysis are best known by the producer and enable
compare and analyze the productivity of the system over time and with other systems.
For example, for the calculation of production plus sales revenue takes into account the
result of inventory, which is the difference between the existence of a well at the end of
productive exercise with respect to the initial stock.

Economic analysis.

From this analysis we can understand how the company is economically, based on the
gross income minus expenses and finally cash amortization of improvements of
machinery and equipment.
Thus they appear results as gross margin (gross income - direct expenses) and operating
profit (gross margin - fixed costs), which alone allow us to know the situation is the
same, to finally arrive at net income, which it is a measure indicating the balance
remaining for the company to consume and invest, maintaining its functionality. This
measure assesses the viability of a company in the medium and long term.

Depreciation of corporate assets is the ineffective annual fee that the company should
reserve to compensate for the loss or replacement of goods and recover the value of the
improvements and equipment caused by wear or obsolescence.

Opportunity cost

It is the annual amount that the company would have to pay an employee to compensate
the contribution of labor from the farmer and his family.

Cost effectiveness

It is the financial bottom line at the end of an economic productive exercise, after
deducting production costs, benefits, depreciation and amortization of the company.

The profit equals revenue, capital divided by the working capital, multiplied x 100.

Financial analysis

It is imperative that the employer producer today manage to detail, this analysis because
it is the result of the company in cash, which allows us to obtain the flow of money at
the end of the business operation.

Equity Analysis

It allows us to establish a correct interpretation of the overall situation of the company;

this requires assessing the change in equity during the year under review using the
following analysis: Initial Active - Initial Initial Equity Liabilities =

Active end - Liabilities = Equity Final Final Conclusion If we handle this way the
company, with their respective supports and back, the result will be a sustainable and
viable agricultural enterprise in time.
Areas of farm management

Usually management specialists tend to divide the fields of administration in functional

tasks, while more typically agronomists emphasize activities, fields or areas of
expertise. In fact, the four functions and fields or areas of management are closely
interrelated. To properly develop the planning, organization, implementation and
control function in the company, the administrator must have an analytical expertise and
access to data relating to the production, marketing and finance.

Production
The most obvious area of responsibility of the manager of agricultural enterprises is
related to the production process. Plans are designed and implemented with respect to a
specific production for each crop or livestock enterprise. That means the selection and
combination of materials for each product. Specific business decisions, such as
determining the quantities of insecticides, herbicides and fertilizers, or silage or
concentrate ration to be given to cattle, are typical of production. The selection of the
type and size of tractor is needed to prepare the land and plant cultivation e4l in a timely
manner, and the decision to have the feedlot cattle grazing or free help you make
decisions that provide the lowest cost. And those are also production decisions.

The manager of the agricultural company uses information on efficiency of production,

input-output relationships and other relationships of biological sciences.

Soil science provides information on crop response to different fertilizer applications

and the effectiveness of different alternatives for weed control with herbicides.
Agronomists can suggest what range is best for certain particular type of soil.
Specialists in animal production can provide detailed information on the impact of a
ration on the fat content of the milk or milk production per cow per day, or weight gains
that will result with different food rations. The effect of providing micronutrients and
use of various antibiotics in the prevention and control of various diseases can be
provided by nutritionists and veterinarians. The impact of breeding programs and
conditioning for weight gains of calves can be provided by specialists in breeding.

Entomologists and plant diseases are able to provide information regarding the damage
they can cause several populations of insects and diseases, and the effectiveness of
certain chemicals, resistant varieties, cultural practices and other strategies for pest
management. Engineers can give detailed information about the detailed construction of
buildings, and the materials are to be used, depending on the characteristics of the
construction. They can also report on the per hectare consumption of gasoline and oil of
different types of tractor, and the number of hectares that can be plowed, raked or
cultured combined with various machines of different sizes. These physical inputs of the
input-output ratio are a critical component of the information needed by business
managers to make production decisions.

To determine the profitability of alternative production physical data should be

combined with information on costs and prices, as well as data on the availability of
land, labor and capital resources. It is necessary to combine information from the
physical and biological sciences with price information to decide production more
profitable for the company.

Marketing

The need for data on prices and costs in order to make more rational administrative
decisions, emphasizes the need for experience and knowledge as regards the second
field of agricultural management, marketing. To maximize revenue or even to survive,
many farmers not only produce crops or livestock efficiently, but must buy inputs and
sell their products at a price that gives them a profit. The ability to analyze marketing,
expectations reflect changes in the patterns of production, purchase inputs and establish
sales strategies are essential components of the product for a farm management success.
The basic decisions concerning the schemes or production period and sales require the
projection of future prices. Decisions on production schemes require the producer to
become familiar with the information on seasonal and cyclical movements, and trends
in prices.

The producer must be aware of the relationship of supply and demand for certain
products, the impact of consumer incomes and the availability of substitute on prices, as
suggested by the cross elasticity of demand, and the expected response of other
producers at current prices. The ability to manage and analyze the expected price data is
one of the basic functions of marketing that must run agricultural enterprise
administrator.

There are numerous other decisions that require knowledge of the relationship
marketing and market phenomenon. For example, what marketing channel should be
used, whether to sell cattle or pigs on the basis of a given weight or quality, or if it does
not sell or dried and stored grain or allowed to sell later. The price premium paid for
different kinds of livestock is a very important marketing information to consider when
deciding whether cows eat to produce milk or fattening cattle or calves are raised. The
evaluation of alternative strategies of auction or hiring potential harvest of corn or
sorghum for future delivery requires a detailed price relationships and expectations
about the same analysis. The potential for contracting the purchase of inputs such as
protein supplements, also includes the analysis of the basic relationship marketing.
Assessing discounts moisture in grain production and the potential to sell to local
processors is another marketing decision that should be assumed by administrators.
These examples illustrate the importance of accurate market information for the
administrator of agricultural enterprises.

Finance

In addition to information on production efficiency and price relationships and market

data must be available on availability of resources to carry out a proper analysis of the
administration of the agricultural enterprise. Except where the producer is owner and
manager of resources, the acquisition of productive inputs such as land, machinery and
equipment and the hiring of labor, requiring the payment of money. Improving the
ability of the workforce also requires the use of money to fund training courses and
other similar expenses.

The field of finance and financial management is another important area in which the
administrator of agricultural enterprises should have some experience.

Financial decisions are basically those related to obtaining and using funds to buy goods
and services. For example, the purchase of land with analysis of various combinations
of debt repayment requires financial management decision. Alternatively, the
commitment of buying livestock or contract seasonal labor include a commitment of
working capital which is also a decision of a financial nature. Repayment ability to
repay loans or other debts should be included in such decisions.

The decision on the use of capital for the purchase of real estate, as opposed to leasing,
is a typical financial management decision. Machinery leasing vs. buying, and schemes
of payments to repay the loan or purchase of machinery, are also important decisions in
the field of finance. The choice between alternative sources of funds, including an
appropriate mix of debt and liquidity requires a detailed financial analysis and
comparison of different interest rates offered by alternative financial institutions.

The management of working capital to take advantage of discounts for the purchase of
food and other cash inputs are significant cases in the financial analysis. The decisions
of financial management covering issues such as business organization to cope with
expected risks, maintaining cash reserves to deal with contingencies, acquisition of
insurance policies to protect property from damage and the development of similar
plans.

For proper financial analysis manager agricultural companies should be familiar with
the concepts and procedures of cash flow to assess the ability to pay, understand the
present value analysis and the basis of the discount on investment analysis. Finally, the
ability to analyze financial statements, tax strategies and other alternative business
organization are also important aspects of financial analysis that the administrator
should know.

In short, decisions on production are linked with questions about what to produce and
what combination of inputs and product use. In farm management, these decisions
should be integrated with decisions about where, when and how to buy and sell inputs
and outputs. Finally, you must decide where and when the production and marketing
decisions should be integrated with financial decisions. The latter respond to the
following questions: where will acquire funds, how terms will be acquired, how they
pay and what it will be used.

Relation of farm management and other disciplines.

It has often been asked whether the administration is a science or an art. The
administration requires things done, given a particular situation. The administration, like
many other professions, including medicine, law, music, engineering or athletics, is
partly an art. The administration is improved by the use of organized knowledge,
whether simple or advanced, whether accurate or inaccurate, but must be well
organized, clear and relevant to the topic, in which case it is a science. Thus,
administration participates in the art, but the science is organized knowledge. The
science and art of management are not unique; on the contrary, they are complementary.
This module emphasizes business management procedures that can be used to collect,
analyze and organize the relevant procedures with the decisions of an agricultural
enterprise. As such, concepts and tools indicates a wide range of disciplines and related
matters; therefore, it is important to mention that some of these concepts and tools
emphasize the wide range of disciplines with which working farm management.

AGRICULTURAL RESOURCES COMPANY.

The process of decision making in the agricultural enterprise requires the identification
of resources and their characteristics in order to analyze its contribution to the
production process. This involves making decisions, for example on what resources to
use and how to combine them to get the goals the company sets in a given period.

The resources of the company have two characteristics: they are scarce and have
alternative uses, involved in the production process in different proportions to obtain a
given amount of production, but never in isolation. The quality and quantity of the
resource, the technique used, the ability to achieve the best possible combination are
determining the quality and quantity of the product. Although in practice the resources
are combined and interrelated and characterize different agricultural areas, for didactic
reasons are classified into three groups: natural, human and capital