Setting goals for business, finances, and farming techniques is a positive way to prepare for the new year. Putting plans in place is the best practice to will ensure that goals are reached in time.
According to Jama Mashele from Wakanda Food Accelerator, being conscious of the different seasons is very important. On the recent Gather to Grow session on Instagram, she explained that farmers need to always have a plan in place and be mindful of where they are located because of climate change.
Know what the market needs
“That is why you need to have a contingency plan to work around the challenges that come with it. Planning depends on who you are supplying to, and it is important to not just plant your crops, you must have a market that you supply to so that you are not stuck with unsold produce,” Mashele said.
She stressed that farming is not about planting seedlings because you have land available to plant, but instead farmers need to know what the market needs. Mashele said at times markets dictate the terms and conditions, and the farmer could work around that for a smooth operation.
“That helps with planning so you can see what you need to plant and how much, and then even find a backup plan.
“You need to plan weekly because [of] your seasons and cycles, but it is very important to know what you are growing and what your supplier wants from you. Then you can realistically predict what you need to do,” she explained.
Agricultural economist Conce Moraba added that the size of a farmer’s operation plays a big role in determining the input and output ratio of the farming business. She believes that farmers need to be able to plan around those two factors.
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Financial planning
“You need to have an input-output ratio that you can work and make sure that money that you put in for inputs, production cost, can produce more so that it can be sustainable.
“You need to have a financial plan so that you know how much money you are getting out once you have put the money in,” she said.
Moraba explained that farming is quite expensive, and it is important for farmers to consider the cost of the seedlings, fertiliser, transport, and labour during the planning stages.
She said it will help farmers understand if they have enough capital to get a farming business running before even making a profit.
“You need to make sure that you have a plan on how you can use your money. But I advise that you talk to agriculture financial advisers which are available in certain banks. What you put out needs to make sense for you to be able to work with possible goals that you have set out in place.
“You cannot just decide that you are going to start a farm without planning because you will not succeed. You need to be able to focus on your planning,” she said.
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