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Key Financial Performance Measures for Farm General Managers

Alan Miller, Michael Boehlje and, Craig Dobbins (June, 2001)

Summary

General managers have overall responsibility for the financial performance of the firm. As such, they need to focus on performance measures that are indicative of the “big picture.” These measures must tie together resources and production, because effective use of resources is at least as critical a concern for the general manager as efficient production. The key measures must cut to the very core of the cost-volume-profit relationship that is at the heart of every business, including the farm.