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Farm Management

Farm Management. Chapter 21 Human Resource Management. Table 21-1 Workers on United States Farms. Source: National Agricultural Statistics Service U.S.D.A. Table 21-2 Wage Rates by Region for Agricultural Workers, 2005. Source: National Agricultural Statistics Service U.S.D.A.

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Farm Management

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  1. Farm Management Chapter 21 Human Resource Management

  2. Table 21-1Workers on United States Farms Source: National Agricultural Statistics Service U.S.D.A.

  3. Table 21-2Wage Rates by Region for Agricultural Workers, 2005 Source: National Agricultural Statistics Service U.S.D.A.

  4. Characteristics of Agricultural Labor Labor is a continuous-flow input. It cannot be stored for later use; it must be used as it becomes available or it is lost. Full-time labor is a “lumpy” input, available only in indivisible units. Although part-time and hourly labor is used, the majority of agricultural labor is provided by full-time, year-round employees.

  5. Planning Farm Labor Resources • Quantity of labor needed (labor as a fixed cost vs. labor as a variable cost) • Quality of labor needed • Management style

  6. Measuring the Efficiency of Labor • Value of farm production per person • Labor cost per crop acre • Crop acres per person • Cows milked per person

  7. Table 21-5Labor Efficiency by Farm Size for Iowa Farms, 2005 Source: 2005 Iowa Farm Costs and Returns

  8. Improving Labor Efficiency • Increase enterprises to make use of surplus labor • Simplify working procedures and routines • Ensure tools and supplies are at work area • Make sure working conditions are as comfortable as possible • Plan and schedule work in advance

  9. Improving Managerial Capacity • Reinforce and upgrade skills • Understand principles behind technology • Develop an efficient office • Apply the principles of immediacy and impact to decide which jobs must be completed first • Participate in community activities • Develop a “world view”

  10. Obtaining and Managing Farm Employees • Recruiting • Interviewing and selecting • The employee agreement • Compensation • Training hired labor • Motivation and communication • Bridging cultural barriers • Evaluation

  11. Recruiting • Job announcement should clearly state duties, expectations, qualifications • Equal Employment Opportunity (EEOA) and the Americans with Disability Act (ADA) are two major anti-discrimination laws. • Be careful not to include irrelevant questions on job applications, especially questions that could be used to classify employees based on certain protected categories (race, color, ethnicity, religion, age over 40, sex, marital status, disability and medical status, union activities, arrests that did not result in convictions and so on)

  12. Table 21-6Benefits Received by Employees on Swine Farms (U.S., 1995) Source: National Hog Farmer, Nationwide Survey of Employees and Producers, 2005.

  13. Agricultural Labor Regulations • Minimum wage law: applies if business uses more than 500 person days in a quarter of the preceding calendar year (see book). • Social Security: Employers must withhold except under limited circumstances (see book). • Federal income tax withholding (see book) • Workers’ Compensation: Insurance for on-the-job injuries, laws vary state to state but most states require for farms with one or more emplyees

  14. Agricultural Labor Regulations • Unemployment insurance: FUTA, see book for when employers must provide. • Child labor regulations: Fair Labor Standards Act, 16 years or older to be employed during school hours, 14 after school, special consent for younger children (12,13) of other farm employees, and children of operator can work on farm. • Occupational Safety and Health Act (OSHA): ensures health and safety of workers. EPA regulates pesticides.

  15. Agricultural Labor Regulations • Immigration Reform and Control Act: Requires employers to check documents and retain a form I-9 • H-2A Temporary or Seasonal Agricultural Work: "Guest workers", must demonstrate no adverse local effect • Migrant labor laws: U.S. Migrant and Season Agricultural Worker Protection Act, housing, safety and record keeping

  16. Agricultural Labor Regulations • Civil Rights: Cannot discriminate on basis of race, color, religion, sex, national origin, handicap, ancestry or old age. (See recruiting) • Disability: Americans with Disabilities Act of 1990 (ADA) prohibits employers or potential employers from discriminating. If aspects of a job can't be performed by someone with a specific disability, these need to be specified in the advertisement. ADA applies to businesses with 15 or more workers for 20 or more weeks in the year.

  17. Read Chapter 21 • This chapter is information that can easily be read and understood • You are responsible for this chapter on exam 3, even if the material is not explicitly covered in these notes

  18. Summary Although the number of people employed in agriculture has fallen dramatically in the past 50 years, their productivity and skill levels have increased more rapidly. Good labor management techniques can improve labor efficiency and satisfaction. A manager of farm labor must be familiar with and comply with federal, state, and local laws that protect and regulate workers.

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