Meaning of Farm Management
Farm management is of the recent origin. The term “Farm Management” conveys different meanings by different people. Some take it to be another name of production economics or agricultural economics, while others consider farm management as nothing more than the farmer’s art of carrying out the daily work of supervision of farm.
Like any other economic problem, farm management as a rational resource allocation proposition more particularly from the point of view of an individual farmer. On one hand a farmer has certain set of farm resources such as land, labour, farm buildings, working capital, farm equipments etc. On the other side, the same farmer has a set of goals or objectives to achieve, may be maximum family satisfaction through increasing net farm income.
Farm management is that branch of agricultural economics which deals with the business principles end practices of farming with an object of obtaining the maximum possible return from the farm as a unit under a sound farming programme.
Farm Management may be called a science of decision making. Therefore it can be defined as a science which deals with judicious decisions o the use of scarce farm resources, having alternative uses to obtain maximum profit and family satisfaction on a continuous basis from the farm as a wholes.
Warren: Farm management is the study of the business principles of forming. It may be defined as the science of organization and the management of the farm enterprise for the purpose of securing the greatest continuous profits.
Objective: Main object of farm management is to obtain the maximum net profit from the various enterprises on a farm. The main aim is to get maximum net returns from the farm as a whole. This leads to success. This object constitutes selection, combination and execution of enterprises consistent with a sound agricultural policy.
The farm management study is undertaken with the following objectives:
To study the input output relationship in agriculture and determine the relative efficiency of various factor combinations.
To determine the most profitable crop production and livestock raising methods.
To study the cost per hectare and per quintal.
To evaluate the farm resources arid land use.
To study the comparative economics of different enterprises.
To determine the relation of size of farm to land utilization, cropping pattern, capital investment and labour employment.
To study the impact of technological changes on farm business.
To find out ways and means for increasing the efficiency of farm business through better input-output relationship and proper allocation of resources among different uses.