TITLE : FARM BUSINESS MANAGEMENT: THE DECISION MAKING PROCESS. 2ND ED.*

In the preparation of the second edition, the authors had four objectives:

1. To retain those characteristics of the frst edition that account for its continued popularity and widespread acceptance. We believe these to be (a) the understandable writing based on fundamentally correct economic and other disciplinary principles, (b) a logical organisation of material when viewedfrom a decision-makingframework, and (c) the judicious use of examples and empirical data to illustrate principles.

2. To incorporate the newer developments infarm management techniques, including the use of computers and computer technology.

3. To include examples that would better illustrate the decision principles presented. Newer examples were used only when they were equal to, or superior to, the older in illustrating the principle in question.

4. To delete certain parts of the boo1e and to reorganiVe certain other sections in order to remove some duplication and to deal more succinctly with the management of the commercial farm.

We express our appreciation to students at Oregon State University who have used and have offered suggestions for the improvement of the text, to our colleagues across the country who have written or spo1een to us concerning their experience in the use of the frst edition, and to our colleagues in the Department of Agricultural Economics at Oregon State University who have contributed to an atmosphere conducive to professional accomplishment.

E. N. C. M. H. B. F.J. S. PREFACE TO THE FIRST EDITION

Some years ago at Oregon State University, the beginning course in farm management was combined with the farm records course. The resultiag subject, Principles of Farm Management, became a five hour quarter course offered to sophomores in the School of Agriculture. This text is an outgrowth of the authors' experience; the order of presentation came as a result of con- siderable experimentation with different topic sequences. Part I is devoted to introductory materials concerning the feld offarm management, while Part II treats the tools and techniques which are basic to the study offarm organiVation and management. Once these tools are presented and illustrated, actual farm problems are treated. The acquisition of the factors of production and sige offarm are discussed prior to the selection and combination of enterprises (Part III). This is followed by a treatment of those management problems associated with particular enterprises and factors of production (Part IV). Part V constitutes an examination of those industry and economy wide forces that have exerted a sweeping inftuence onfarm organization and management in recent years.

It is believed that the organization of the materials is logical and advantageous from a teaching standpoint because it permits the student to build on knowledge that has been acquired. Beginning with Part III the organitation departs from that of most texts on the subject. Our experience has been that when students are well grounded in principles and procedures, when they are aware of the impact of risk and uncertainty on farm management decisions, and when they understand acquisition and size problems, they can master organization problems rapidly and with realism. It is recognized that some instructors start early in a course with a laboratory problem which involves the complete organization of afarm. In this case Chapters 9, 10, and 11 can be read out of sequence. If the students have had a course infarm records or accounting, Chapters 3, 4, and 5 may be omitted or assigned without class time being devoted to their discussion. Examples have been selected to demonstrate that the tools offarm bllsiness analysis have application to conditions throughout the United States, but no attempt has been made to provide a catalog offarm management research resultstrom all thefifty states.

In addition to using the early chapters of the manuscript in mimeographed form with our students, the authors have used most of this material for farm management short courses for farmers and county agents. We have concluded that any intelligent person with an interest in the subject can master the material presented.

There are numerous individuals who have contributed in various ways to the completion of this wor1e. This contribution should be recognized even though the authors alone are responsiblefor the contents. Professor W. N. Thompson of the University of Illinois read the manuscript in its early stages and his suggestions resulted in many improvements. The rigor of the material was strengthened by the comments of Dr. Robert F. Hutton of the Pennsylvania State University and our colleague at Oregon State University, Dr. Grant Blanch, who also reviewed the manuscript. Their criticisms improved the focus of the boole and resulted in the clarifcation of some vague passages.

Other people,contributed less direct but important help. Dr. G. Burton Wood provided encouragement and created desirable working conditions. Tlte teaching experience of the senior author at Iowa State and Kansas State Universities permitted observa- tion offarm management problems in the Corn Belt and in the

Great Plains. Much was learned at these institutionstrom Earl

Heady and Raymond Beneke of Iowa State, Dale Knight, J. A. Hodges of Kansas State, and O. J. Scoville of the United States Department of Agriculture, at that time associated with Kansas State University. Credit is due the clerical staff of the Depart ment of Agricultural Economics at Oregon State University for the typing and preparation of the charts.

To all these people and to our colleagues in the Department of Agricultural Economics at Oregon State University, we express our appreciation.

E. N. C.

M. H. B.