Unit 4: Agribusiness Systems. Objectives 4.1 Define terminology 4.2 Identify Careers in the...
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Transcript of Unit 4: Agribusiness Systems. Objectives 4.1 Define terminology 4.2 Identify Careers in the...
Objectives
4.1 Define terminology4.2 Identify Careers in the Agribusiness systems
pathway. (quality assurance specialist, quality control supervisor, research economist)
4.3 Distinguish between the four types of Agricultural businesses. (sole proprietorship, partnership, cooperative and corporation)
4.4 Distinguish between areas of the Agriculture Industry. (production, processing, marketing, distribution and sales)
Objectives
4.5 Distinguish between common depreciable and non-depreciable capital items used in agriculture. (feed, seed, fertilizer, stocker cattle, feeder cattle, breeding livestock, equipment, land, land improvement)
4.6 Identify types of loans. (short-term, capital loan, mortgage)
4.1 Define Terms
1. Acquisition cost -- the cost of acquiring property or equipment
2. Assets -- economic resources controlled by the farm or ranch business
3. Commodities -- raw materials or semi-processed goods that can be bought and/or sold for further processing
4. Depreciation -- a method of pro-rating the cost of a capital asset over its useful life
5. Expense -- any costs associated with producing a product
6. Income -- the amount of money received from selling a product or providing a service
4.1 Define Terms
7. Inventory -- a physical count of all assets in a business
8. Liability -- a financial obligation 9. Profit -- the excess of receipts over payments
for all factors of production10. Salvage value -- value of an asset at the end
of its useful life11. Useful life -- an estimated amount of time
during which an asset or facility will yield income or be use
Quality Assurance Specialist
General Information: Quality Assurance Specialists are responsible for
inspecting, analyzing, and writing reports about production quality.
Salary: $29,150 Annual Average (O-Net)Suggested High School/Collegiate
Courses: Agriculture, biology, math, business and computers.
Specialized training and licensing
Quality Control Supervisor
General Information: Quality Control Supervisors inspect and enforce rules
on matters such as health, safety, food, licensing, or finance.
Salary: UnknownEducational Requirements:
2 year degree
Suggested High School/Collegiate Courses: Agriculture, biology, math, business and computers.
Specialized training and licensing
Research Economist
General Information: Research Economists study the ways society distributes
scarce resources, such as land, labor, raw materials and machinery, to produce goods and services.
Salary: $79,770 Annual Average (US Bureau of Labor and Statistics)
Educational Requirements: 4 year degree
Suggested High School/Collegiate Courses: Agriculture, economics, marketing, political science,
law, math, business and compute
SOLE PROPRIETORSHIP, PARTNERSHIP, COOPERATIVE
AND CORPORATION
4.3 Distinguish between the four types of Agricultural
businesses.
A sole proprietor is someone who owns an unincorporated business by himself or herself. Example: Family Farm, DNW
Sole Proprietor
In a general partnership, each of the two or more partners will have unlimited liability for the debts of the business.
The income and expense is reported on a separate return for tax purposes, but each partner then reports his or her pro-rata share of the profit or loss from the business as one line on his personal tax return.
Partnership
Cooperative
A Cooperative is a business organization owned and operated by a group of individuals for their mutual benefit.
A cooperative may also be defined as a business owned and controlled equally by the people who use its services or by the people who work there.
A corporation is an institution that is granted a charter recognizing it as a separate legal entity having its own privileges, and liabilities distinct from those of its members.
Example: Tyson, Wal-Mart
Corporation
PRODUCTION, PROCESSING, MARKETING, DISTRIBUTION AND
SALES
4.4 Distinguish between areas of the Agriculture
Industry.
Production
The actual production of the raw material.Examples
Corn, Soybeans, Cotton, Cattle, Chickens, and Timber
Processing
Processing is the changing of a raw material into a useful product. An economy must have a system for turning a wheat crop into bread. If the economy does not possess processing facilities, a wheat crop will not benefit most of the population.
Marketing
Integrated approach to selling agricultural items. To market an item you must identifying the product, place, promotion and price of agricultural products.
Distribution and Sales
Distribution is all the activities associated with the transport of an agricultural product to a place where it can be used. Much of the corn grown in Illinois would be useless if it could not be distributed elsewhere.
FEED, SEED, FERTILIZER, STOCKER CATTLE, FEEDER CATTLE, BREEDING
LIVESTOCK, EQUIPMENT, LAND, LAND IMPROVEMENT
4.5 Distinguish between common depreciable and non-depreciable capital items used
in agriculture.
Depreciable vs. Non-depreciable
DepreciableGenerally,
depreciable items include buildings, manufacturing equipment, office equipment, and vehicles.
Non-depreciableLand is not
considered a depreciable item as it does not wear out or become obsolete.
Types of Loans
Short Term Loans- are loans over a short period of time. Less than one year.
Capital Loan
Mortgages are loans in which a borrower (i.e. a home buyer) posts a property as collateral in order to receive a loan from a lender (i.e. a financial institution).
Review
4.1 Define terminology4.2 Identify Careers in the Agribusiness systems
pathway. (quality assurance specialist, quality control supervisor, research economist)
4.3 Distinguish between the four types of Agricultural businesses. (sole proprietorship, partnership, cooperative and corporation)
4.4 Distinguish between areas of the Agriculture Industry. (production, processing, marketing, distribution and sales)