Professional Documents
Culture Documents
Presentation on
Financial Modeling of Non Farm Units
EMPOWERMENT &
ECONOMIC
DEVELOPMENT
SOCIETY
About SEEDS(SOCIAL EMPOWERMENT AND ECONOMIC DEVELOPMENT SOCIETY)
Approach
Identify The Leverage Drive The Replicate The
Build A Model Model
Gaps Partnerships Model
Holistic development of schools through technological and non
technological interventions improving learning outcomes and
promoting
• 93% of the Micro and Small Enterprises are unregistered of which more than 60% are located in
Rural India*
• Out of total number of Micro and Small Enterprise accounts with the banks, the accounts covered
under the Credit Guarantee Scheme are just 2.64% of total accounts*
Rural Entrepreneur
Rural
Entrepreneur
•Entrepreneur Appraisal
•Business Planning – Lean
•Performance Tracking – HANDHOLDING Startup, Size of Investment
Business, Finance SUPPORT/ FINANCE
INCUBATION •Tailor-made Finance
• Support Dealing with Red
Flags – Obstacles – for 6
•Facilitation of Loans, Legal
months
compliances, licenses etc.,
Our Model : One Hectare Model
The basic idea of our ONE HECTARE model is to provide the farmers with a sustainable source of
income by engaging them NFAs (non-farm activities). The key component here is to enhance the
productivity of one hectare land by using it for the purpose of NFA other than agriculture alone.
Our Approach
The model is to
Anchor activity and Ancillary Activities for a farm are chosen based on various factors that include geography, demography, market
potential- forward and backward linkages etc., Therefore they may differ from one area to other while the unit economics might remain
the same. An anchor activity in one cluster/geography could be an ancillary activity in an other cluster/geography
While it may be impractical for a small and marginal farmer to take care of multiple anchor units, focusing on a single anchor unit with
few ancillary units would be suggestible
Components
Goatery Unit
Fertilizer to crops
Capital Cost
Shed Cost for Buffaloes 40000 NPV ₹ 129,786.04
shed cost for calves @ one calf per each buffalo 16000
Total cost of animals 240000
IRR 25%
cost of dairy appliances @ 1000/buffalo 4000
cost of one chaff cutter 25000
Total capital cost 325000
Operating Cost
Cost of feed for first set of animals for one month 6600
cost of insurance for first set of animals 6000
cost of fodder cultivation for first season 4800
cost of vaccination for first set of animals 2200
Total operating cost 19600
Objective: To set up a stall fed goatery farm with 6 goats ( 1male + 5 female) as a part of an integrated
farm unit using the available resources to enhance monthly income of a small/marginal farmer
Note:
Investing in a breed such as Boer (male) though expensive will yield better returns in short period of time ; Cost per kg of a Boer
breed male will range from ₹ 1500 to ₹ 2000/-
Female goats are retained for at least two years to allow maximum breeding
Financials
Capital Cost
Cost of construction of adult shed 63000 NPV 208204.1347
Cost of construction of kids shed 37620 IRR 23%
Equipment cost 5250
Cost of does 140000
Cost of bucks 8000
Total 253870
Operating Cost
Labour Wage 72000
Cost of insurance 5920
cost of concentrate feed for adults 17010
cost of concentrate feed for kids 4500
Fodder cultivation cost 6000
Dry fodder cost 9000
vaccination cost 2100
Total 116530
Role of Entrepreneur
• Room or shed of atleast 50 sft- 150 sft
• Provide on time vaccination and feed
• Sanitize the area prior to the cycle
• Clean the feeding equipment daily
• Regular Supervision of birds
• Spending half an hour every day
• Repayment of loan from 4th month
Financials
Capital Cost
NPV 171535.5332
shed construction cost 90000
IRR 37%
fencing cost 2000
cost of equipment 9000
Total 101000
Recurring Cost
Labour cost 72000
cost of chicks 21000
cost of feed 31500
cost of vaccination 1200
Total 125700
Most efficient, practical and sustainable way to overcome Micronutrient malnutrition by integrating the usual rural
based diets (cereals and legumes) with fruits and vegetables
Investment for setting up a kitchen garden will be very minimal and is intended to cater to the domestic consumption
of the farmer family
Any additional production could be used for selling the same in the nearby shandy/store on a daily basis
While considering interest and cultural integrity of a rural family, combination of leafy and fruit vegetables would be
ideal for a farmer considering the nutrition requirements of a healthy family
Fruit and Orchid Crops
Objective: To plant suitable varieties of fruit and flower plants in one fourth of a hectare land that
provides sustainable income to the farmer thereby enhancing his income
Benefits Challenges:
• Organic fruits and flowers • Disasters such as Cyclone/ floods etc.,
• Minimum investment • Availability of water
• High and regular rate of returns • Fertilizing errors
• Availability of natural fertilisers and • Lack of knowledge on transplantation
pesticides minimise the costs • Weed growth
• Intercropping amongst fruit crops • Seed to Seedling in controlled atmosphere
yielding in additional income
Appropriate spacing of at least 3 metres need to be provided between each fruit plant. If there are mango plants,
spacing should be at least 6 metres
Intercrops assumed are ridge gourd and bitter gourd in this case ; Can be chosen based on the geography and climatic
conditions
Seed to Seedling to plantation process to be done in controlled conditions- Application of technology for keeping it
organized may be considered
Fruit or any orchid crops are to be chosen considering the climatic conditions, storage, market available and
perishability period
Financials – Fruit and Orchid plants
Fencing Plants- Bamboo/Teak
Objective: To fence the one hectare farm with plants such as Bamboo that not only acts as a shield to the
farm but provide decent income to the farmer over a period of time
11 feet spacing to be maintained between each plant and around 180 such bamboo plants can be planted along the
border of a one hectare farm
3 to 4 years for the plants to mature and give shoots that can be cut
Feed to Livestock: Fodder Grass, Hydroponics, Azolla
Objective: To grow multiple varieties of fodder grass, set up a hydroponics and azolla unit catering to the
food security and nutritious needs of the livestock ( Buffaloes and Goats)
FODDER GRASS: An ideal and HYDROPONICS: Soil less AZOLLA : Sustainable feed substitute
indigenous way of preparing the feed cultivation for livestock
for the animals with the least expenses Saves water Most economic and efficient with
possible high protein and mineral content
No weeds to deal with; microbe
4 varieties of Fodder Grass free growth Easily digestible owing to high
Rhodes Less space, higher yields protein and low lignin content
Mulato Root zone aeration and adequate Improves the nutritious state of
Co 3 porosity of medium ensured livestock- increase in their weight
Capital intensive- but yields rich Maintenance of temperature and
Co 4
dividends in short time PH is critical
SUBSIDIES AND LOANS
Subsidy is available only on hydroponics unit. The cost was Rs.30000 and a subsidy of Rs.20000 can
be availed
Benefits Challenges:
• 100% natural plant fertilizer • Declining worm population in the
• Nutrients are very easily absorbed bed
by the roots of plants • Wrong selection of earthworm
• Not easily flushed from the soil species
because of the worm mucus that it • Maintenance of adequate moisture
contains and pH of bedding materials
• plants have a longer duration to • Psychological constraints in handling
obtain the nutrients and get the waste
maximum benefit
Subsidy of 25% (35% for SC, ST) is available on the capital expenditure
MUDRA SISHU loan can be taken at an interest rate varying from 1%-12% depending upon the terms
Opportunities Challenges
Integration of more than two livelihood Promoting and spreading the widespread
interventions on the same piece of land adoption of the model
would yield better results
Radical rethinking of agricultural education,
Improves the economic conditions of extension and research
resource constrained farmers and enable
Agriculture professionals and farmers require
them to become rural entrepreneurs
orientation and training that emphasizes
Livestock improvement, increasing per unit holistic concepts, institutional behavior,
profitability and integration cooperation, and respect for nature, local
Soil health improvement by promoting farming systems and indigenous knowledge
organic production system, IPM, mass Critical factors: Institutional support such as
composting, encouraging use of homemade Bank linkages and government subsidies
bio-pesticides, bio-fertilizers etc.,
Emphasis on Lab to Land initiative- plugging
Enhanced availability of water, reduced soil the gaps in education-research- extension
erosion, land degradation by in-situ
Capital: Ineffective institutional support, lack
conservation of nature
of organised backward and forward linkages
THANK YOU