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Posted by
Maendeleo Vijijini
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Farming, like any other business, requires an investor to understand the various dynamics involved in the production process.
The farmer also has to map out the critical factors that must be kept within specified limits for the business to succeed.
For instance, chicken farming can be very satisfying once the investor and the farm team have mastered the production dynamics.
On
the other hand, it can be very frustrating if an investor allows the
production process to proceed in free fall, responding to issues as they
arise.
In my 29 years in veterinary practice, I have learnt to categorise farmers a bit differently from the textbook classification.
I classify them as the business farmer, the telephone farmer, the hobby farmer and the copy and paste farmer.
The business farmer is a classical investor and will do farming
to make profit. If the farm cannot make profit regardless of the
interventions she executes, she will close it and channel the salvaged
funds to another business.
The farm staff in a
business farm are organised like in any other business and they are
skilled or semi-skilled with regular evaluation of their performance.
This is what my lecturer, those many years ago, called “the farm business firm” to the amazement of students.
They
could not understand why the farm economics lecturer was repeating the
word “farm” twice until he wrote the full phrase on the chalk board.
OCCASIONAL VISIT
The
telephone farmer, on the other hand, leaves the farm investment to her
staff to run and pays a visit occasionally – mostly over the weekends
and on holidays.
The farm usually never realises business success though it may run for many years.
Many people holding day-time jobs and have means fall in this category.
Hobby farmers, on the other hand, are not motivated by profits. The farming is very expensive just like many other hobbies.
Gratification
in hobby farming comes from emotional satisfaction. A hobby farmer will
spend anything within her means to ensure that her animals are in top
condition.
She relishes displaying her animals to others and will give the precise history and performance of each animal with gusto.
You
dare not ask her the bottom-line of her investment. She will not be
happy when you start crunching the numbers particularly if you are an
accountant.
In my opinion, it is perfectly in order to
be a hobby farmer because emotional gratification is one of the jewels
we are all looking for in our lives.
The peace of mind hobby farming delivers may make the individual flourish in other circles and command a flowery public image.
I
believe if we went into deeper economic analysis and deal with
intangible profits, a successful hobby farmer would really win big.
PERPETUAL COMPLAINANT
Nonetheless, if you chose to be a hobby farmer, you must have a really good source of income to finance the activity.
Finally,
we have the copy and paste farmer. This investor joins the fray because
others are successfully doing it. The investment is usually hurried and
she is impatient with achieving profitable results.
Shortcuts are her working policy in the hope of making a killing.
She
will go for the cheapest product, the cheapest animals and the cheapest
professional service without consideration for the quality offered.
This
kind of farmer is also a perpetual complainant. Nothing works for her.
When you visit her farm for the first time as a service provider, the
introduction you get is a list of service providers and products that
have landed on that farm and were abandoned as quickly as they had come.
It is a good warning that even you or your products will be meeting the same fate soon.
The
copy and paste farmers are the most frustrating clients to deal with
professionally. They ignore expert opinion and instructions and will
never acknowledge their mistakes.
In most cases, they
never succeed in establishing profitable farming businesses.
Unfortunately these kind of farmers, in my estimation, comprise the
largest number in the country.
UNDERSTAND FARMER'S MOTIVATION
This begs the question, “Could this be the reason why we are never self-sufficient in food supply?”
In
the backdrop of this farmer behaviour, I have an operational policy of
making sure I always understand what a farmer’s motivation is before
agreeing to professional engagement. That leads me to a phone discussion
I had with a lady calling from Murang’a on Monday this week.
She
said her name was Jacinta and she wanted to know whether I could assist
her establish a zero-grazing dairy cattle unit with good grade cattle.
“I
can do that Jacinta but I can’t really start addressing your question
without understanding your objective in keeping the cows,” I told her.
“Okay
doctor, I have some knowledge on cattle but I would like your advice on
establishing a self-sustaining and profitable dairy farm of about 50
head of cattle over the next five years?” she shot back.
With that response, I concluded I was dealing with a potential “farm business firm”.
We agreed she would come to my office for in-depth discussions on her planned dairy farm project.
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