The primary reason for one to
set up a business of any kind is to realise profits. Careful planning,
judicious and methodical execution of the plan always precedes the successful
realisation of good returns for every dollar, time and effort invested in the
business. The farming business is no exception to this rule and like any other
venture it ascribes religiously to these tenets. Whilst it remains true that
there is money in farming, it should however be borne in mind that the money is
only extracted by those individuals who carefully approach the farming business
from the correct angle, with the right attitude and readiness to invest a good
measure of patience. The discussion that follows hereafter seeks to single out
some of the major considerations that a new farmer should look into when
starting a new farming business.
Land
Size & Tenure
The maximum extent of the farm
in question has a lot of bearing on the type of farming as well the nature of
projects possible on that piece of land. For instance if one has been offered a
50ha plot they can never dream of doing commercial beef breeding because the
land size is inhibiting. The ownership status or security of tenure also
dictate the direction one can/not take in terms of their farming decisions. It
is improbable that one embarks on erecting such expensive infrastructure as
state of the art dairy parlours at a farm, which is not their own, unless the
terms of tenure specify of some degree of compensation for permanent farm
developments. The length of lease/ownership
is key in planning especially where physical developments with huge
capital outlay such as dam construction are involved.
Agro-ecological
Region
It is without any shred of
doubt that the decisions on what crops to grow as well as scale of operation is
heavily influenced by the climatic conditions which obtain at the farm in
question. It is only in a few cases that exemptions can be talked of; such as
in the case where greenhouses enable the manipulation of the microclimate do we
find crops growing outside their expected regions. Agro-ecological region under
which the farm falls dictate what can be done or not done given the role played
by climate on the agriculture with respect to ambient temperature and rainfall
in case of rain fed operations or even adequacy of the same to harness for irrigation
or livestock rearing purposes.
Soils,
Vegetation & Water Resources
The soil type is also
important in determining the enterprise that one can embark on, for example,
sandy soils will support the cultivation of tobacco whilst deep well drained
loams will suit crops such as potatoes.
It is very difficult to ignore such factors. Vegetation type has greater
bearing for livestock enterprises with respect to browseable herbages (e.g.
acacia species) as well as whether the grassveld is sweet veld or sour veld. Vegetation
is also handy in identifying suitability of land for various uses as the type
of vegetation can easily be used to tell the soil characteristics in that area.
For instance, the presence of water-berry trees can be used as a beacon to
signify a high water table and land that is prone to water logging. Such a
sward can thus be avoided especially if the field being established is meant
for crops that require well-drained soils. Assessment of the adequacy of
surface water resources and the potential for harnessing it from other sources
is necessary during the planning phase. This is so because if one discovers
that water is so limiting, they may explore possibilities of drilling
boreholes. If that does not avail enough water still, then one is forced to
consider farming enterprises that do not require copious quantities of water.
Choose
the Right Enterprise(s)
Guided by what your farm can
do for you as seen above, a farmer can then go ahead and choose an enterprise
or more. One can choose to integrate, practice mixed farming or specialise
depending with the array of possibilities at their property.
Technical
Feasibility
Once the enterprise(s) have
been chosen, the farmer has to assess whether there is requisite managerial
expertise to oversee the type of venture he has got in mind. If that is not the
case then he should consider ways of hiring people with the necessary
managerial clout to see the venture to fruition. For instance suppose one has
chosen to do flowers, such projects call for trained and experienced managers.
In other cases one can choose to rely on consultants. Always ensure that there
are ready experts around to consult from. Apart from management it is important
to ensure that one identifies their sources of manpower. If the enterprise
chosen is labour intensive (e.g. tobacco or cotton production) it is
recommended to assess if there is a ready population in the vicinity to draw
your labour requirements from. In addition to that the farmer should at this
stage undertake all the necessary production planning. S/he should come up with
the plans detailing the production cycles, estimated levels of production, the
requirements in terms of inputs etc....This stage is critical in that it is
meant to assist the farmer to put everything into perspective so s/he can
picture each cycle from start to the end with clarity at each production stage.
S/he also evaluates some of the critical factors such as the accessibility of
the farm in terms of road network, proximity to markets, service centres and
other amenities. These factors do have a lot of bearing in success or failure
of any proposed venture hence need careful scrutinizing.
Financial
Implications
Having taken all the
considerations outlined above into account, it remains for one to look
critically into the financial implications of the chosen enterprise. The farmer
has to put into perspective the amount of money needed to effect the relevant
farm developments. Not only that it remains imperative to also consider the
amount of money needed to purchase such equipment that support production on
the farm as tractors, ploughs, combines and so forth. It is recommended that
one considers the financial requirements for the procurement of the requisite
inputs necessary for the execution of at least one cycle of the chosen
enterprise for instance enough seed, chemicals and fertilisers for the whole
agricultural season.
Marketing
One problem that is faced by producers today is marketing of their produce. A good harvest is not good enough in business if one cannot push it through the market. It is very pertinent that one identifies or better still secures their market before they even start production. It is equally important for the farmer to engage an expert who can advise on the market dynamics and trends. This is instrumental in timing of the production cycle in such a manner that the farmer avoids entering the market when there is a glut of that particular produce. A case in point is that of Nyamandlovu farmers in Umguza district, who in 2013 experienced a glut of cabbages to the extent of making record losses. This can be avoided by sound forward planning. Future predictions of market performance are also essential for one to avoid building their business around a temporary demand. Here I am alluding to the sustainable market which can constantly absorb produce for a desirable period of time. Picture a scenario whereby one puts up greenhouses for cut-flower production and the market fizzles out after three months of production - what a loss. It therefore pays to consult experts to help with long term forecasts of market trends.
Physical
Farm Planning/Land Use Planning
Depending on one’s competence or
lack of it the recruitment of experts to assist with the physical planning of
the farm can be valuable. This alludes to the division of the farm into blocks
for a variety of land uses. This procedure involves assessment of the arable
pieces of land and earmarking these for various cropping activities. Setting
aside areas for future developments such as small earth dam construction in
line with the farmer’s vision. Not only that, it also involves such activities
as the demarcation of grasslands into paddocks preferably of equal carrying
capacities. Areas not arable are then left out to cater for farm buildings,
sheds, tobacco barns and housing compounds. These can be the rocky unworkable
patches. Such areas can also be used for establishment of such things as the
farm’s woodlot.
Farm
Developments
Using the outcome of the land
use planning, farm developments can then be commissioned in earnest. These are
activities such as sinking of boreholes, construction of such infrastructure as
dip-tanks, roads, small earth dams, weirs, tobacco barns, greenhouses, farm
servants quarters and the like, assuming that these were not in existence
prior. However, laying out of critical production infrastructure should take
top priority. By this I mean that in the case where there are so many
developments to be effected, one has to prioritise them in order that the most
critical is addressed first, whilst the rest can be looked into as and when
time and resources permit.
Equipment
& Inputs Procurement
After the establishment of key
farm infrastructure, the equipment and inputs should then be procured. This is
tactical in that one can at this point comfortably order their 30 tons of
fertiliser knowing full well that they have the storage space to keep it safely
away from thieves and weather elements. Equipment needed at the farm can be
quite a lot, hence prioritising should also be done in this instance. Key
pieces of equipment should be procured first and the remaining ones can be
bought in later as the business grows.
Recruitment
of Personnel
With all the infrastructure
and equipment in place what remains is for one to recruit the right people to
carry out the project. It is prudent that one finds the correct people with the
right skills and experience should the whole thing be a success. In modern
farming any serious farmer should seek the services of a qualified and
experienced manager unless s/he has the same competence in the subject matter.
One should see to it that they have enough of the requisite manpower in each
department before production commencement so as to avoid stalling of production
due to labour constraints.
After going through all the stages outlined above, nothing stands in your way, all is set, so go ahead and produce for your family, community and the nation at large. After all has been said and done, given that this is a business check to see if you are making any profits, if not don’t instantaneously decide to quit rather be patient, take time to learn from your experiences and get mentorship from those who have been successful in that trade. In order to register success in farming one must be ready to learn and this takes tonnes of patience.
Comments
Post a Comment