Farm business planning model in the Republic of Macedonia

Abstract: Farm record keeping in Republic of Macedonia is not recognized as one of the constructive and important management tools by the farmers. The focus of this study is to provide enterprise budget calculations for the most important vegetable crops in Republic of Macedonia, along with appropriate farm business planning model with regard to the Macedonian conditions. The study purpose is to improve the overall farm management by adapting the established farm business planning model. The created enterprise budgets in the empirical approach are based on statistical data, panel analysis and field tests. With the aim of providing accurate and applicable enterprise budgets and farm business model related to the panel analysis, an Advisory Group was formed, consisting of four experts within the field. The field test was conducted to four types of farms (registered farmer, family farmer, experienced farmer and young farmer) aiming to test and examine the accomplished budget calculations along with the present situation. In general, record keeping gives information about the past activities and can present an information basis for farm business planning. Record keeping can improve the overall understanding of the farmers about the importance of the farm business plan. Based on the enterprise budget calculation and with some adjustments to the Macedonian conditions a farm business planning model was provided. The farm business planning model can be used as a tool for future planning, choosing the right combination of the production of enterprises as well as financial document for credit approval. The farm business planning can influence in the improving the overall management of the farm as well as in the further enhancement of the agricultural production.