Some considerations on the agricultural enterprise

Dear readers, in order to produce food, land is needed, and this land is managed by man, whom we can call a manager, since he is the one who must organize and plan the activities related to agricultural production. To get the most out of an agricultural enterprise, the manager must understand some aspects of the economy, goods and services.

Design by @amestyj with an image of his property captured at the Indio Hatuey Pasture and Forage Experimental Station.

Apart from the aforementioned, for a farm to generate adequate production, it must establish crops that are adapted to the climatic conditions of the geographical area where it is located. It is also important to consider that to facilitate the management of crops, sometimes equipment and machinery such as tractors, tillage tools, irrigation systems, mechanical milking, artificial insemination of livestock among other elements are acquired, to acquire these goods the agricultural entrepreneur must make an investment after a market study that will show which are the products of greatest demand in the market, with this information you could project the income that will be obtained by the sale of the items established on their land.

Therefore, it can be said that the economic value of the farm is not only based on the infrastructure that can be found on it, but also on the production of food, with the production of which the necessary labor can be hired, such as tractor drivers, maintenance personnel and agronomic management.

Land preparation for planting

Design by @amestyj with an image of his property captured in a farm in the Catatumbo Municipality, Zulia state, Venezuela.

On the other hand, the producer must also consider the expenses generated for the acquisition of inputs in order to obtain a profitable production. Aldana (2001) pointed out that there are fixed and variable inputs, defining fixed inputs as those whose quantity cannot vary in the short term because the cost would be too high, such as construction and large machinery, while variable costs are those that are susceptible to immediate changes, such as unskilled labor and raw materials, among others.

Taking into account the above, the agricultural entrepreneur seeks to produce more at a lower cost, i.e., for example, if corn is planted, the production of this crop generates more income than the costs of agronomic management, therefore, currently a wide variety of more profitable agronomic alternatives have been implemented.

Dear readers, in conclusion, agricultural production consists of transforming goods and services into other kinds of goods, therefore, the intention of any agricultural entrepreneur is to generate value to the entire production process, i.e. he seeks that the agricultural products he produces acquire greater value than the inputs used throughout the process.

Bibliographic references
Aldana, H. (2001). Agricultural Economics, Administration and Marketing. Editorial Terranova: Bogota, Colombia.