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Unit 4 Ag Management
QCE Agricultural Science
| Term | Definition |
|---|---|
| identify and describe methods of agricultural recordkeeping for physical and financial data | - field notebooks - inventories - financial reports, i.e. partial budgets, complete budgets and development budgets,cash flow statements, profit-and- loss statements and gross income - computer spreadsheets, databases and applications (apps) |
| recall the law of diminishing returns | if successive units of inputs are added to a given production system, a point is reached when a maximum production occurs and then declines |
| describe a partial budget | financial statement that compares the profitability of alternatives |
| describe a complete budget | also known as total budgeting; refers to preparing a budget for the farm as a whole; |
| describe a development budget | a detailed statement outlining estimated costs to support the agricultural activity. Used to discover the cost to ‘develop’ a new product or create a new business, |
| Describe a Cash Flow Statement | the sources and uses of cash by operating activities, investing activities, financing activities |
| Describe a Profit and Loss Statement | a financial statement that summarises the revenues, costs and expenses incurred during a specific period of time, usually a financial quarter or year |
| Describe Gross Income | the amount of salary or wages paid to the individual by an employer, before any deductions are taken |
| Recall the formula to calculate a Gross Margin | Gross Income - Variable Costs |
| Describe a Gross Margin | the difference between revenue and cost of goods sold |
| Describe Variable Costs | Costs that are only incurred during the production of an enterprise or commodity such as seed, fertiliser and fuel |
| Describe Fixed Costs | The costs that need to be paid irrespective of whether there is production such as electricity, permanent wages, internet, phones |
| Describe why common units are used when comparing different enterprises | If the gross margin is broken down using gross margin per head, or per hectare or per dry sheep equivalent (dse) it is a clear comparison of two different enterprises. |
| Recall Feed Conversion Efficiency formula | Weight of Feed/Weight Gain |
| Recall the Daily Gain formula | (End Weight - Initial Weight) / number of days |
| Recall what an EBV measures | A numerical way of comparing the traits of a particular animal to that of the breed average. A + number means they are higher than the breed average, a - number is lower than the breed average. You cannot compare EBV's from different breeds. |
| Recall the data about plant or animal production that can be compared and analysed | EBV's, Liveweight Gain, Milk Production, Grain Yield from variety types |
| Recall the factors affecting property management decisions | -market suitability, inc consumer trends, sustainability, suitability, -location, processing options, -chemical use -environmental and geographic factors -animal welfare -HR -WH&S -availability of technology -financial considerations |
| Give some examples of how the following can impact decisions made on a property: Market Suitability | Location to markets has an effect on price, time of harvest/sale, market chosen, product grown and freight/processing costs abattoirs vs private contract with abattoir vs live export organic vs conventional farming food miles, animal welfare |
| Give some examples of how the following can impact decisions made on a property: Level of Chemical Usage | to avoid food spoilage and maintain food supply, prevent animals from suffering effects of pests and diseases fertilisers to supply additional nutrients Herbicides to control weeds HGP can be used in animals to increase growth |
| Give some examples of how the following can impact decisions made on a property: Environmental and Geographic Factors | the climate that determines which agricultural industries can be efficiently run in any area, along with soils and topography. |
| Give some examples of how the following can impact decisions made on a property: Animal Welfare Requirements | Poor animal welfare impacts on animal production and reproduction Poor animal welfare can result in loss of market access Legislation requires livestock owners to care for the welfare of their animals |
| Give some examples of how the following can impact decisions made on a property: Human Resources | Managerial skills available and experience in the enterprises Labour available and required - family, employees, contractors Self and staff management with respect to the needs and wellbeing of the human resources including the manager |
| Give some examples of how the following can impact decisions made on a property: Workplace Health and Safety | When employing workers - availability of skilled workers, training, adequate training, standard operating procedures |
| Give some examples of how the following can impact decisions made on a property: Availability of Technology and technological expertise | New techniques have been introduced such as embryo transfer, sexed semen, pregnancy testing using ultrasound and robotic milking of dairy cattle. |
| Give some examples of how the following can impact decisions made on a property: Financial Considerations | To improve production efficiency and to lower costs (especially labour), farms have become bigger and equipment introduced. Farms have diversified production to avoid problems associated with unstable markets. Market instability Production lag |
| Recall the types of Marketing of an agricultural Product | Direct Marketing/selling Online – direct from farm/Auctions Plus Auctions Marketing Bodies Futures – forward selling |
| Define Human Resources | the personnel of a business or organisation, who represent a significant asset in terms of skills and abilities |
| Identify the categories of risk in rural operations | Workplace Health and Safety, Natural Hazards, Economic Risk |
| Identify Reliable Sources of Information for the producer | Government sources and research organisations Commercial and professional sources Chemical companies - advise on the use of their products such as pesticides, herbicides, drenches and growth promotants Veterinary health/Fertiliser /Seed /Feed companies |
| Recall the correct order of the PPRR model | Prevention Preparedness Response Recovery |
| Describe the Prevention step of the risk management model | take actions to reduce or eliminate the likelihood or effects of an incident. (Long Term) e.g. developing a risk management plan, viewing long-term weather forecasts |
| Describe the Preparedness step of the risk management model | take steps before an incident to ensure effective response and recovery. (short term) e.g. there is a drought predicted - purchase supplementary feed, cull inefficient livestock |
| Describe the Response step of the risk management model | contain, control or minimise the impacts of an incident. (Active Risk Occurring) e.g. during drought - destock, supplementary feed, agistment on a non-drought affected property |
| Describe the Recover step of the risk management model | - take steps to minimise disruption and recovery times e.g. after a drought, continue to supplementary feed until grass has grown, purchase stock to replenish herd, |
| Describe Crop Rotation | The process of growing different crops on the same land from one year to the next Increases soil fertility, Reduces soil erosion, Increase in soil nutrients (if legumes used). Disadv: may increase labour, cost of seed, need more machinery |
| Describe Paddock Rotation | Rotating paddocks of similar size to allow for a rest period Greater pasture utilisation, can increase stocking density. Disadv - more fencing needed, more labour to move cattle |
| Describe Cell Grazing | A system of rotational grazing designed to maximise feed utilisation - much greater pasture utilisation, very high stocking density Disadv - significantly more fencing used, human presence needed daily or every 2 days. |
| Describe Water Harvesting | A form of water conservation where runoff is collected for production purposes - catches additional water for 'free'. Disadv: infrastructure needed - dams or pipes and tanks - can be costly. |
| explain how the sustainable use of a resource (i.e. water, soil, biota) depends on its abundance and replenishment rate | Renewable resources = replenishment rate > rate of consumption e.g. wood, beef, solar Non-renewable resources = rate of consumption > replenishment rate e.g. oil, gas, coal |
| Recall what abundance of a natural resource means | abundance is the availability of a resource. Countries with ‘abundant natural resources’ are considered if the resource contributes to greater than 40% of their GDP. |
| The replenishment rate of a natural resource involves | rate of regrowth/replacement |
| Describe the sustainable use of natural resources | Sustainable use is allowing harvesting without impacting on economic, environmental or social factors or future use. |
| Name the three criteria used to assess sustainable environmental practices | resource management - physical - biological waste management |
| Recall some factors that can be included under physical resource management | soil, water, machinery, infrastructure including precision agriculture (e.g. controlled traffic, tillage) and whole-farm planning (e.g. fencing, wildlife corridors, soil degradation) water management includes on-farm storage, soil profile, irrigation |
| Recall some factors that can be included under biological resource management | including humans, animals, plants Plant and animal selection – important for water efficiency E.g. water-efficiency of crops, FCR, Effective plant and animal management practices E.g. vegetation management, pest management (IPM), crop rotation |
| Recall some factors that can be included under biological waste management | includes chemical and fertiliser run-off plant residue and animal waste management, nutrient cycling e.g. stubble management, composting, effluent ponding and carbon sequestration, On-farm energy production and use (e.g. solar, methane production). |
| Recall some key environmental issues that impact agricultural production in Queensland | dryland salinity, erosion, drought and water quality. |
| explain how natural resources are influenced by human activities | mining, irrigation and land clearing can create some key environmental issues due to the provisioning of dams, urbanisation, resource extraction and pollution |
| Describe dryland salinity | Tree clearing and irrigation are causing a rise of the water table. Can be improved by planting deep-rooted trees or salt-tolerant varieties |
| Describe Erosion | Water and wind carrying away O and A horizons of the soil Sheet erosion starts to take away the banks of the creek Widespread in Australia. Can be improved by vegetation coverage, not leaving paddocks bare/fallowing |
| Describe Drought | Lack of rainfall results in less plant growth/ground cover Can be improved by fodder conservation, fodder banking (growing crops to save for later), destocking |
| Describe Water Quality | Caused by Turbidity – soil sediments suspended in water Occurs in waterways Excess nutrients in water Eutrophication Can be improved by controlling fertiliser application, fencing off waterways |
| Recall some of the methods of evaluating land in Queensland | land suitability land capability agricultural land classification good-quality agricultural land versatile cropping land. |
| Recall the sources of risk in agricultural production | Water/Soil Management Weed management Pest/Disease Management Drought Market Changes Genetics Workplace Health and Safety Financial Risks |
| Recall some examples of risk-avoidance strategies for agricultural producers | diversification, alternative sources of income and capital investment |
| Describe diversification as a risk-avoidance strategy | producing a variety of outputs (crops or animals), or both, on one farm, i.e. not specialising in a single commodity. An alternative source of farm-based income. E.g. beef farm that also sells fat lambs, Lucerne farmers that also sell weaner steers |
| Describe alternative sources of income as a risk-avoidance strategy | Using other skills to create an off-farm income not related to primary production - e.g. working as a teacher/accountant/veterinarian for an income stream that is not reliant on the property/agricultural production |
| Describe capital investment as a risk-avoidance strategy | Using cash reserves to purchase an asset or invest in another business. For example shares, stocks and bonds or real estate. These assets may provide an off-farm income. |
| Describe a budget | an estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals |
| Describe a profit-and-loss statement | a financial statement that summarises the revenues, costs and expenses incurred during a specific period of time, usually a financial quarter or year |
| Describe a Cash Flow Statement | report the sources and uses of cash by operating activities, investing activities, financing activities and certain supplemental information for the period specified in the heading of the statement |
| Describe Inventories | A count of all stock in the various production stages and is a current asset. |
| Describe an agricultural enterprise | agronomic or husbandry management practices performed with financial decisions implemented in the pursuit of producing a plant or animal product |
| Recall the types of agricultural enterprises | Corporations, share farming, contract farming, |
| Describe an Agricultural Corporation | a legal entity that is separate and distinct from its owners. They enjoy most of the rights and responsibilities that individuals possess: they can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes. |
| Describe Share Farming | method of farming that involves the owner or tenant of agricultural land having a contract with another party where each party takes a share of the profits from the land |
| Describe Contract Farming | an agreement between farmers and processing and/or marketing firms for the production and supply of agricultural products under forward agreements, frequently at predetermined prices. |
| Recall the types of management and ownership structures in agricultural enterprises | Sole trader Partnership Company Trust |
| Evaluate the sole trader ownership structure | A sole trader is a simple business structure and gives the owner all the decision making power. Adv easy to set up, legally responsible, solo business decisions. Disadv. Day-to-day management, hard to take holidays, liability for debts |
| Evaluate the partnership ownership structure | A partnership involves two or more people (up to about 20) going into business together with a view to making a profit. Adv: greater borrowing capacity, employees can become partners. Disadv: disagreements between partners |
| Evaluate a company ownership structure | A company is a separate legal entity (unlike a sole trader or a partnership) and can incur debt, sue and be sued. Adv: company tax rates, can buy and sell shares. Disadv: needs to be registered with ASIC, complex business structure |
| Evaluate a trust ownership structure | A trust is a structure where a trustee carries out the business on behalf of the trust’s members (or beneficiaries). A trust is not a separate legal entity. Adv: more privacy than a company, not all shares need to be equal. Disadv: complex structure, |
| Describe a free trade agreement | an agreement between the country(s) or regional blocks to reduce or eliminate trade barriers, though mutual negotiations with a view to enhancing trade. |
| Describe different methods of production of the same agricultural product | for example Cotton - irrigated, broadacre dryland. E.g. Chickens - free range, barn-raised, caged production. |
| Describe import and export agreements | contracts between importers and exporters for the purchase and sale of goods across borders. Can be bilateral (between two countries) or multilateral (between multiple countries), outline the terms and conditions, including delivery, payment and risk |
| How do free trade agreements impact competition | Free trade agreements generally increase competition by reducing barriers to trade between participating countries. This leads to a more competitive market for businesses, potentially resulting in lower prices and increased choices for consumers. |
| Describe Succession planning | A process focused on identifying and developing plans to fill critical roles (and pass on property) when they become vacant due to retirement or other departures |
| Provide some examples of government decisions and policies on agricultural enterprises | Tree clearing, live export ban, Qld Reef regulations |
| Recall the criteria for assessing environmental sustainability | - resource management § physical § biological - waste management |
| Recall the criteria for assessing social sustainability | - labour § employment § welfare - infrastructure - standard of living § health and nutrition § population distribution § education § income § food quality § food security. |
Created by:
DrLeeAGS
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