However, most of the decisions made on farms today are not made to maximize profits. They are made with profits in mind but not the maximum level. The other goals enter into the decisions. When deciding how to manage in a rapidly changing world farmers have to ask themselves what they want and why they are farming. The answer to these questions is very important for determining which way they want to go and how to manage their business.
Any business is rewarded for three things - risk, work, and luck.
When we look at the farm business there are many different types of all three. Risk can be related to the weather, pests, and other uncontrollable events. It can be related to the price received and the method of marketing chosen and so forth. Farmers need to think in terms of risk management not risk avoidance. Farm work can be divided into components similar to any other business.