FARMING AS A BUSINESS

Presented by:
KIGOYE GODFREY
PROGRAM COORDINATOR- KHRUTC/
AGRIBUSINESS CONSULTANT
 INTRODUCTION

 Farming as a business and how the

approach can help us use
agriculture as a decent employment
to exit out of poverty.

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 DEFINITION OF TERMS

Subsistence farming
Subsistence farming: is a low-input, low-risk and low return
farming practice where farmers:-
 Use indigenous knowledge and technologies
 Earn low yields per unit of production used
 Use their harvest mainly for food consumption, or sell only
small surplus yield for income, and
 Work in isolation of each other relying on individual farmer
priority.
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 Low yield = limited food + low income = limited assets + low
savings = persistent poverty
 COMMERCIAL FARMING
 Commercial farming is the opposite of subsistence farming
 It is high-inputs, high-risk, and high return farming practice
where farmers are profit-oriented.
They focus on:
 Large-scale production (large land sizes of one crop
enterprise, for instance)
 Advance technologies and innovations than human labour
(e.g. OX ploughs, tractors etc)
 Market forces of demand and supply to achieve high profits.

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 FARMING AS A BUSINESS

Farming as a business
 Farming as a business is a hybrid practice/approach that uses
the “profit thinking of commercial farming” as the driving
force for the small-scale subsistence farmers.
 It is an approach that “triggers farmers” mindset and attitude
to engage in farming with business attitude right from
planning, production and marketing.
 It also promotes collective action by farmer groups in order
to attain aggregation of outputs that are attractive to the
market.
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 Typically it is about agribusiness
 AGRIBUSINESS
 Agribusiness is a farming practice that is
bigger than just tilling the land or keeping
animals.
 It looks at farming from a “value chain” lens
 It looks at employment and income
generation opportunities
 As a result, agribusiness provides job and
income opportunities in agriculture
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DEVELOPMENT STAGES IN AGRICULTURE
 Stage 0: Farmers with resources unutilized
 Animals on free range
 Crops poorly managed
 Waste and space
 Stage 1: use knowledge in all farming activities
 From seminars or workshops
 Exposure visits to experienced farmers
 Insisting/doing something (project) continuously
 Stage 2: cut ropes (threats)
 Feed the soil
 Plant improved varieties of crops
 Keep crossbreeds of animals
 Improve management
 Stage 3: Diversification stage i.e.
i. Poultry (local birds) 7
ii. Banana

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 BASICS OF MORDERNISATION

•Feed the soil (fertility management) “feed the soil if its to feed you
-Compost manure
-Plant teas
-Manure teas
2. Plant improved varieties of crops
3. Keep pure/crossbreeds of animals i.e avoid in breeding
4. Irrigation
-Bottle irrigation
-Drip irrigation
-Watering can
-Polythene watering
-Mulching
NB; Harvest run off of roof top water
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 APPROPRIATE TECHNOLOGY TRANSFER
IN COMMERCIAL FARMING
• RUN OFF WATER HARVESTING 2.ROOF TOP WATER HARVESTING

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 MAJOR TYPES OF AGRIBUSINESS

• Input traders who sell seeds, hoes, fertilizers,

etc;
• Farmers who produce and sell to traders or
consumers;
• Traders who buy produce from farmers and sell
directly to consumers or add value and sell;
• Transporters who provide transport services to
producers and buyers;
• Others that include extension services at a fee,
etc 10
 KEY FACTS ABOUT FARMING AS A BUSINESS

To achieve FAAB MUST focus on adhering to the following:

The Right enterprise: The product that is highly demanded in the
market
The actors (input dealers, buyers and other supporters)
The Right standards: The units of measurements used (e.g., acres of
land [4,000m2]; weights used in the market e.g., kgs, litres, etc.)
Profit maximization: The reduction of cost of production. Increasing
yield per unit of production (e.g., use of improved technologies-
seeds, fertilizers, etc.)
Risk management: Mitigating all factors that cause business loss
e.g., correct timing of planting, harvesting, and selling; insurance; etc

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 BENEFITS OF FARMING AS
BUSINESS
Household level
Increase income
Better life (assets, services)
Improved social status
Reduction on dependency
Flexible work time
Unlimited earning opportunity
Freedom to make own decisions
Ability to apply unique skills, talents
Be your own boss.
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 COMMUNITY

• Employment opportunity
• Easy access to goods and services
• Improved local markets
• Inspiration to also start a business

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 GOVERNMENT

• Increased taxes

• Economic growth

• Limited insecurity

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