WHAT IS AGRICULTURAL ECONOMICS AND FARM MANAGEMENT

Agricultural economics and farm management is the applied branch of economics and management respectively that is concerned with the application of economic theory in production, management
of resources, accounting, record keeping, risk bearing, decision making, establishing objectives, set policies, communicating, planning, budgeting, financing, marketing and advertisement in optimizing the consistent, effective and efficient  production and distribution of agricultural products.

It has to do with the co-ordination, organisation, control, allocation, distribution and utilization of the resources used including the factor of production such as land, labour and capital along with the commodities produced by farming using economic principles, demand and supply in getting market outlets, determining the agricultural products to produce, the quantity to produce with respect to price, how to produce, where to produce and when to produce, how many workers to employ and how to procure farm inputs, implement, equipment and machinery with the objectives to maximise profits and minimizing the costs of producing a certain quantity of products.

Farm management involves the coordination of all agricultural production processes through the process of planning, organizing, directing, controlling etc. in other to attain the main goal and objectives of the farm which is to make optimum profit through effective operation, organisation, administration, production, advertisement, marketing, evaluation and management of resources, efficient co-ordination and direction of the farm hands.

In a very popular opinion, agriculture is highly profitable and for it to be achieved optimally, there is need for proper knowledge of agricultural economics and farm management.