Management is the process of working with and through others to achieve organizational objectives in a changing environment. Central to this process is the effective and efficient use of limited resources. Farm management is concerned with how can the individual farmer so organise the factors of production – land, labour and capital – on his farm, so adapt practice to his particular environment, and so dispose of his product, as to yield him the largest net return, while still maintaining the integrity of his land and equipment.
Farm management, as the subdivision of economics which considers the allocation of limited resources within the individual farm, is a science of choice and decision making. Farm management is concerned with the decisions which affect the profitability of the farm business.