Business Management

Discover Penn State Extension’s educational resources on how to better manage, market, and finance farms and agricultural operations. Comprehensive information, advice, and workshops on farm business management are available for farmers, winemakers, food retailers, and other agribusiness professionals.

Agribusiness Resources: Business Strategy and Planning

Successful agribusiness management coordinates all farm operation phases through careful planning. It considers income and profitability and combines basic resources to maximize returns. These resources include land, labor, management, and capital.

Having a business plan can further help determine the operation’s goals and provide a well-defined direction. More to that, a thorough plan can assess the impact of uncertainties, such as production and price risks, on future business outcomes. There is no single correct format, but common basic elements of successful plans include business objectives, management, and marketing plans, financial plans, and succession and estate plans.

Another fundamental part of the business planning process is choosing a pricing objective, along with an associated strategy. Pricing objectives, as part of the marketing plan, should be selected based on the business and financial goals. Careful objective selection will guide the choice of pricing strategy.

Valuable agribusiness resources – along with business plan examples – are available through Penn State Extension. Food business entrepreneurs can benefit from the Food For Profit online course. The course provides integral business planning tools and offers information on food regulations and safety, marketing, pricing, and financing. In addition, discover more on the importance of family farm and business succession planning, property transfers, and estate planning.

Farm Financial Management

Economically sound agribusiness often involves the integration of various farm management tools for financial success. These tools – including cash flow statements, income statements, and balance sheets – can help successfully analyze, plan, and manage a farm business.

In the Farm and Agribusiness Financial Management section, find advice on a number of topics, including budgeting and value-added production. Access online courses on using QuickBooks to maintain financial records, as well as utilizing partial budgeting to assess possible financial impacts due to changes in resources.

Agricultural Marketing and Sales

Successful marketing of any agricultural business requires a solid strategy. Marketing research is a determinant factor in developing a marketing strategy and plan. The operation’s target market should be one of the main areas of research.

Identifying the target market is crucial for knowing who and where your customers are and learning how to best communicate with them. This, in turn, will help select appropriate marketing channels.

Directly marketing products to consumers is a rapidly growing part of the agricultural economy. Direct marketing channels can increase revenue and raise local awareness of the enterprise. Learn more about marketing products at farm markets and discover the basics of handling, preparing, and selling produce during the Retail Farm Market online course.

Additional information can be found in the Agricultural Marketing and Sales section. A workshop on gaining customer insight into your operation and observing as a secret shopper is available, as well.

Risk Management and Insurance in Agriculture

Insurance is an essential part of any agricultural business’ risk management strategy. Agricultural business insurance is generally available for the business itself, as well as for its employees, crops, and livestock.

Agribusiness insurance policies include business property, general liability, product liability, and employee dishonesty. Crop insurance allows producers to insure against losses caused by weather conditions, unavoidable pests and disease, and price fluctuations.

Other coverage options include specialty insurance for peak season endorsement, disruption of farm income, and dwelling ordinance and law. Find detailed information on the Risk Management and Insurance page.