LET THE FIGURES TALK AND NOT THE CROP

Until farming is seeing as a viable business model and actually carried out same way, it may still be a far cry from profitability. It is important to understand that just like any other business, farming can also be involved in form of venture funding or forming of partnership and co-operatives.

It is sad however that the form of co-operative that operates is just for the sake of getting financial lease and other materials and some extension services and that's all.The need for in-debt financial cash flow and holistic modules of operation for various planting and harvesting season is lack and this is one of the causes of the lack of viability in the sector.

I encourage you to do a complete budget and forecast for your farming venture and see every thing in black and white. Make the figures talk, this would give you a true picture of a possible outcome of the venture after the first and second plant and harvesting seasons.
A few of us some months back came together and decided to set up a joint farming venture as a complete business model and for sustainability, income generation and profitability. This is the bedrock of our starting the farming business. We are yet to plant the first crop let alone clear the entire hectares of land, but we have put every paper work in place. This has clearly given us a practical true picture of where we are going and how to get there.

The beauty about feasibility and cash flow patterns is that, it clearly revealed to us the losses we would incur in the first harvesting period and still sustain the business from the income. We could clearly see how long it would take us to pay back our initial capital and live on the rest to sustain the farm activities.

I was more concerned on the cost overhead and production cost, as profit is all about increasing sales and cutting cost yet not compromising quality. Even though on paper this could be achieved, circumstances could warrant a deviation as the farming practice goes on, but at least there was a road map which would help to make decisions easy as we ago along.

Understanding the Business Model of Farming.

It is rather unfortunate that most people see farming in this part of the world as an occupation for the illiterates and school drop out. Some see it as an occupation meant for aged people in the rural community. The benefits of farming is far beyond who is involved in it but rather, how can it become a business that brings about sales and profit generation. This is not to say that there are no challenges involved, because there are but as an investor seeking out ways to reduce these challenges should be one of your concerns.

1. What are the numbers involved? You need to know the production quality and quantity of produce or animal husbandry you want to get involved in. Its not all about planting vegetables or rearing catfish, because someone says its a good business. It finally comes down to number and how much you were able to turnaround. A business may look good and still not have prospect for growth or profitability. That's one of the hiccups in agriculture, it is  a business of volume and numbers. It would be very challenging to break even just cultivating one plot of land as compared to another investor who cultivates over 1  hectare of land using same crop.
2. Crude Implements and Modern equipments: The use of hoe and cutlass is still a common method of farming here in this part of the world. There is a limit to the number of plots the hoe and cutlass can be used, even in the clearing of weeds. This primitive method, not only wastes time, it delays the planting period of crops and also results to a waste of productive man hours. When compared to the use of small mechanised equipments like the mini tractor for tilling the soil, the results gotten are different. In considering agriculture as a business model, then the thoughts of using hoe and cutlass is not welcomed at all.

3. Forecast as a business man not as a farmer: A farmer says he would wait for the planting season before he starts to cultivate the land or after the first rain. A business man would rather create irrigation systems and go ahead to plant Again you need to look at the numbers and turnover ratio. If you are considering planting in March for example because its the rainy season, then you may likely not have a sustainable business model. It is no longer new that climate change is altering so many things. The idea of native knowledge in terms of dry season and rainy season no longer works. There are some times when a glut would be experienced in the market and there are times of scarcity, you need to take advantage of both situations. In times of scarcity, the produce may be small in supply but a business man can still have much more demand and meet supply same way it was done during the glut period, this would help to keep the income steady and not nose diving.

Agriculture is a serious business and a source of regular income if properly done and treated as such.

CAN EVERY NIGERIAN BE A FARMER ?

It takes a lot of commitment to be involved in the process of farming as a business. The Government is trying its best to ensure the enabling environment is created for Agro-preneurs to thrive. The BIG QUESTION still remains is agriculture a viable business? Can anyone make a living from agriculture and still have enough to invest? Can it grow to become a conglomerate and a "blue chip" company. This and many more are questions asked by young individuals who are advised to pick up farming as a means of entrepreneurship and self employment.

1. Its not a means to an end: The notion created is that if you cannot get a job then go into farming. This is out rightly a wrong reason to go into farming because when  challenges comes, it could be difficult to stand firm. You need to make a clear decision that you want to invest in farming, either full time or part- time, that's when you get to reap the benefits and also stay put to overcome the challenges.
2. It is a steady stream of income:There is no guarantee that you would make a whole lot of money in your first propagation, but you can be rest assured the income would flow in trickles and make a huge stream of income overtime. The idea of a quick and fat flow of income is a mirage with agriculture, as it is a venture that entails continuity. You do not just plant crops and go to bed and expect to make profit when they are harvested and then that's all. You have to ensure you guard against all possible risks such as weeds, pest, pilfering, poor irrigation etc. Once you can guard against all these you are definitely going to make income.
3. The challenges can be mitigated against: One of the major challenge in the present day economy is not improved variety of seedlings, but rather the availability of regular supply of organic and inorganic manure. Also the necessary availability and usage of basic farm implements for commercial farming. As most of the farming practises are in small scale and usually cant stand the test of time. Weeds, pilfering, pest control, etc all these can be guarded against, but the lack of mini tractors like ploughs, harrows, planters, ridgers are the major challenges.

I encourage like minds to come together and invest as a group in farming, this way the real essence of farming been a commercial venture with positive growth to the economy can be achieved.

FARMING THE GREEN GOLD 2

3 Reasons why you need to be  Farmer.....

There are some things that are just as basic needs as survival and one of those needs is everyone on the planet needs food to survive. The quest for increase in come and revenue may have led to the rise in other substantial businesses and investment. At the end of the day, everyone come down to the dinning table for sumptuous meal. You need to be the one providing that meal.
Farming is a whopping income investment that everyone wanting to live on the bright side of life should invest in for the following reasons.

1. Population growth: there would always be a population growth in every economy irrespective of the pace. With this growth comes the challenge for basic amenities like shelter and food. One of which is very paramount and that is food. Taking position in this area gives you a higher leverage and an unending income flow. Some people may have preferences when it comes to type of food, but at one point or the other every body eats. Taking a cue that as population increases, so also the demand for food. This would give you a good reason to take position and invest in agriculture.

2. Steady flow of income: It becomes necessary at some point to have a flow of income to meet other of your needs. Agriculture is season based, having crops available at different times of the year. This gives you an edge to cultivating various crops at different times of the year and making some cash in. You could decide to cultivate maize at one season, yam, water melon and the others season it could be a different crop entirely. You have the possibility of having various crops at different times bringing in cash for you.

3.  Food on the table: This is so important as you are helping a lot of people get what they earnestly desire 'FOOD'. You can be rest assured you definitely would be paid for that. Its all about getting the consumers what they need and they in turn pay you for doing so. Irrespective of the population size, the demand for food is always on the increase and would continue to be.

You definitely will always smile to the bank as a farmer because babies are born daily, families are springing up everyday, population is increasing, so also the demand for food. Being positioned as a farmer gives you that edge and advantage.

Have being wondering how and when, the time is now.

AGRICULTURE; FARMING THE GREEN GOLD 1

There have been quite a number of concerning interests in the agricultural value chain and the wealth it seems to offer. The benefits this sector holds is a huge goldmine that is yet to be tapped and processed into unending wealth production. With the current state of interest by every stakeholder in the Nigerian economy, no doubt this sector is set for wealth creation.

Three Things you should consider in farming the green gold.
1. Do you home work: As profiting as the agribusiness is, you still need to do a lot of realistic assessment in comparison to facts available. In as much as various sector tends to appear profitable, be well abreast with the feasibility survey of the sector(poultry, arable crops, animal husbandry, piggery, apiculture etc) you intend venturing into. First is to see the policies available in that sector, as well as the governments interest in same. Also set out to know your immediate target market (agents, middle men, wholesalers and final consumers), this will help you to have a broad view of the prospects, in terms of long term profitability and short term losses. Have an idea of the entire value chain of that sector. Take for instance poultry; products available are the eggs, the birds sold live as fresh meat and frozen meat. Having in mind the necessary tools needed to profit from each value chain.
2. Set out on the Proposal alignment: Quite a lot of people may hide under the guise that its their project so they do not need any proposal, as what they intend to achieve is in there head. As this may be right, but you still need to put it down in black and white. This would give you a clearer perspective of the venture when compared with the reality on ground. It is easy to say that aquaculture is profitable and gives about 30% profit markup. The reality is that there are competition to face also and this you need to identify and have a strategy to break into the market and get known, as it is a free entry and free exit market.
3. Don't dive in, put in your right foot: It is obvious that the banks and loan facilitator may not be interested whether you use all the funds at your disposal or not, as their repayment plan must be adhered to. Yet stick to a common business rule, test the market. Go slow on step at a time. Yes volume is key in business, this may be true in the service business, but in agriculture, sustainability is key and it translates to profit. Once you can sustain your produce, volume will take care of itself. Take for instance, if you proposed budget is for 10,000 birds, I STRONGLY ADVICE you start off with one quarter (2,500 birds). See how the process goes for 3 months, then you increase in doubles or at percentages over the year. Once you can successfully manage 25% of the initial produce, then you can work out modalities for increase. This may not be applicable to existing agropreneurs as I assume you may have understood your process.

Every business has got its thick and thin side, so also agriculture is not spared. If not properly done would nose dive, so also it could be a great harvest. Its not a constant line graph sloping upwards like other businesses. As the factors that are impeding profitability and growth are enormous. Apart from the human factor of power, personel and policies, there is the force- majeure (act of nature) which you may have little or no control over. Such a s thunder storms, rain storms, drought, flooding, air/water borne diseases etc.

You need to also have a clear picture of the factors you can control and mange, as well as those you cannot control, but reduce their destructive impact.  
Remember, profit is key to any business, even if you love agriculture from the marrows of your bone, without profit there would be no continuity.
I encourage everyone to look and invest www.agricshow.com in the Nigerian agriculture economy, its a green gold mine field yet to be tapped.