Agricultural Consultant Key Terms

Understand the terms you need to know for working with agribusiness consultants

By Lesley Graybeal

Agricultural consultants typically assist farmers in working with agribusiness by providing services related to crop production estimation, productivity optimization and financial management. Agricultural consultants can provide farmers and small businesses with assistance in developing a business plan and ensuring that they stick to that plan during each production cycle to maximize profitability and business sustainability. Consultants use a variety of business vocabulary, so knowing the different terms used in consulting is important for marketing and selling profitable agricultural products.

Business plan

A business plan is the most crucial document for any business or entrepreneur, including farmers. Most agricultural consultants start with creating a business plan, which includes a business concept describing the service or product sold, financial features and requirements of a business and any special legal provisions governing the business or industry, many of which apply to agriculture.
Try: Entrepreneur provides an extensive definition of the business plan and detailed descriptions of the elements of an effective business plan.

Feasibility studies

Feasibility studies are an integral part of creating a business plan, and are defined as the process of analyzing and evaluating a proposed project or plan of action to determine if it is technically possible, if it can be done within a proposed budget and if it will be profitable. Agricultural consultants typically conduct feasibility studies for new farmers or agribusiness to determine chances of success and sustainability.
Try: The Boldt Media Center offers a brief definition of feasibility studies as part of its business glossary.

Financial management

Financial management is a business process in which managers develop financial goals for generating income and controlling costs. Financial management involves three main components: financial planning of available funds, financial control of existing assets and financial decision-making about revenue and costs. In agriculture, additional factors include crop and livestock estimations, crop insurance and risk management.
Try: Read a concise definition of farm financial management from the University of Maryland agriculture extension office, which is used to develop workshops and seminars in financial management for agriculture.

Market analysis

Market analysis is a process in which businesses asses the consumer market for their product or service to ensure profitability. Market analysis incorporates the elements of size, growth rate and trends in the target market, as well as means of distribution of products or services. Like feasibility studies, agricultural consultants can conduct market analysis on behalf of farmers and agribusinesses to assist in successful agricultural product development.
Try: Get a full description of the elements of market analysis from NetMBA.

Agribusiness

Agribusiness is the common term for the conglomeration across various levels of agricultural production, processing, manufacture and retail. Agribusiness characterizes the corporate form of farming prevalent in the United States and elsewhere throughout the world, and even small farming operations can take part in an agribusiness structure for selling their produce.
Try: D. W. Block Associates offers several definitions of agribusiness.

ASAC certification

The American Society of Agricultural Consultants offers ASAC certification for consults in agribusiness. When a consultant is ASAC certified, it means that he or she has a four-year degree in a consulting field and has been a member of ASAC for a qualifying length of time. Members can become certified as Consultant or Associate classifications.
Try: The American Society of Agricultural Consultants provides a detailed overview of the qualification requirements for membership and certification.