This B. Sc. Thesis analyzes the situation in a farm where sheep rearing and forestry are practiced in addition to regular work. In the farm, the management system has not changed in the last fifteen years. Therefore, they are interested in increasing their income with the additional investments they offer in their environment. They are interested mainly because the eldest son has started his education at the biotechnical faculty in Ljubljana, so he could be a young entrepreneur within five years. The main challenge of the household work is to work out a production plan that would allow full employment on the farm. The current level of livestock production and available land is not sufficient for additional full employment. If the farm decides to start the complementary activity of processing dried meat products, this would allow full employment. Based on the assumptions made, the result is that the income per effective hour worked at the farm level increases to 4.58 EUR. The alternative itself makes it possible to achieve hourly rates of over 7 EUR/h and achieves an internal rate of return of 12.3%.
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