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Success in Agriculture is not easy. There are many pitfalls and risks. The learning curves are steep. In fact many farmers know what they know not by attending any classroom lecture but through trial and error, local knowledge passed through generations, the power of keen observation and learning from their peers. This is not to say classroom knowledge cannot be used in the field, a potential farmer needs to be a keen observer and have an open mind to learn.
Having said that, to be a successful commercial farmer is another matter. While the above is important, there are several things a budding farmer needs to know and do to remain successful;
(i) Treat Agriculture as a business. It is important to keep meticulous records of income and expenditure. It is important to compare the performance of the business over time and ask questions why, how and when. This is very important whether or not the business has accessed a loan or is planning to. All expenditures and sunk costs deserve to be accounted for. If your business is big enough, consider hiring an accountant, business manager, cashier or a book keeper as your budget permits. These people can help monitor cash flow, manage taxes and help in business forecasting.
(ii) Take Risk Management seriously. This is a big issue for not just farmers but virtually all business people. Risks management is basically the forecasting and evaluation of financial or operational risks and the identification of procedures to avoid or minimize their impact. First a farmer should evaluate the business he is in to (lets assuming poultry). Second, he and his partners or staff brainstorm and lists out any and all potential areas that can go wrong in their business (e.g. failure in delivery of feeds, diseases, natural disasters, slump in sales, loss of key staff, government policies... anything) and then plan for how to respond (e.g. get a second supplier on standby, take insurance, explore other markets, ensure knowledge is shared in the business, and diversification respectively) and very importantly assign people to monitor the threshold which when reached you will take action. It pays to write it down so that when the events happens, there is no panic and everyone knows exactly what to do. If you have the money invest in a professional Project Manager to draw up a risk management plan for you. It may cost you up front, but like insurance, it can save you big time.
(iii) Read and Learn. It is important to keep abreast of the trends in the industry. Reading helps you monitor events and spot opportunities and even risks. Reading also help you gain from the experience of others. Also attend as many seminars, workshops and meet-ups as you can. These are places to gain valuable knowledge.
(iv) Share knowledge. Sharing knowledge is as important as receiving it. Helping others grow in their business has a rebound effect. It helps you consolidate knowledge on the matter and the feedback helps in building wisdom.
(v) Use technological tools. Never be hesitant to use technology around you. Exploit what you have to gain knowledge and apply to your business. For example, phone apps like Windy are weather apps with very good short and medium term weather prediction capability. A Farmer can use that app to plan the application of fertilizer. Apps like EverNote can help organise farm activities and set up reminders.
(vi) Be positive. There will be bad times and there will be good times. Bad times don’t usually last long.
