GREEN REVOLUTI ON

SETTING UP A SMALL HOLDER FARM 2

2018-07-25T11:12:00.000-07:00

One of the major challenges to maize cultivation is the infestation of pests such as grasshoppers and rodents. The use of pesticides could help keep these pests at bay. There are several working pesticides as there are also adulterated. It's best to ask around from farmers which have worked for them.

I advice when planting your crops create enough space in rows and column. This will help you to have easy harvesting at maturity. It is important to understand that it's a business from the onset and should be treated as such. I have seen so many farmers plant their crops in a long row and column without considering walk ways and minivan path. The process of weeding and harvesting should be factored in from the beginning. The spacing also helps you carry out easy fumigation against pest and diseases when the need arises.

One of the challenges with farming as it were is keeping appropriate records of materials and daily activities. It is imperative that your business has a form of record, preferable called a farm diary. No matter how small the maize farm looks. Keep your records.
It helps you see the big picture and more reveals the true position of your figures. I remember a friend asking me why should I keep record of the cost of maize seed I bought as well as herbicides and seed treatment materials. At some point when the business/farm needs expansion, the reality of these costs will dawn on you and if you had not factored them in, this will be a potential problem.

My encounter with small holder maize farmers in my region is that they do not factor in the cost of purchasing their maize seed as well as the amount of time spent in the farm. All this is very simple and crucial. have a daily work/ weekly schedule. Something very simple for you to understand.
I have a very demanding day job, most times I visit my small farm only on Saturdays and Sundays. Yet I make a conscious effort to take inventory of the plant growth , colour of leaves, any visible signs of infestation and most importantly number of hours spent on the farm and the activity carried out.

Have it in mind that someday when the farm venture begin to expand, you will have a first hand idea of what activities needs to be done on the farm per time per period.

I up the above post has helped, please feel free to communicate with me on your challenges faced in your farm and other related agri-businesses. We would be glad to help.

SETTING UP A SMALL HOLDER FARM 1

2018-07-11T11:16:00.001-07:00

There has been this national drive to diversify the Nigerian economy from oil and one of the targets is agriculture. A major challenge to achieving this feat is the lack of a comprehensive data base of clusters of small holder farms. In my domain situate at Obafemi owode local government in Ogun state, there are well over 13 small crop and animal farms ranging from 3 plots(about1900sqmt) to 5 acres cultivated by individuals.

One of the ways to really have a home run on consciously reviving the agricultural sector is to encourage clustered small farms and have a comprehensive data of their produce and activities. I strongly advice entrepreneurs who have not tried their hands on green collar(farming) to start small. Ranging from 1plot to 3acres for easy management, irrespective of the type of farming activity(Animal husbandry or crop cultivation).

As earlier mentioned in my post some years back, it is imperative that you have a well details business proposal on the farming structure/venture being chosen. Lets pick on Maize cultivation for this discuss.
Zea mays popularly called corn is a crop abundantly available during the beginning of the rainy season till the end of the season. Yet it can be cultivated all year round with the appropriate weather condition.

The cost and experience given below is based on my own venture on a small sized 1acre farm land within my locality. It could vary for different areas.

Setting up a small maize farm.

Size of farm land 3plots
Seedlings 1kg = N400( local breed).
Clearing of stumps/making of heaps = N15,000
Herbicides/ Altrazine = N2,900.

Most local farmers within my area argued that its best to just clear the farm land and then cultivate at the appropriate spacing at 3 seeds per hole. As a business considering the rudiments and practice of cost optimisation I prefer making heaps/ ridges as this will help to reduce the emergence of weed and make mechanical as well as manual weeding easy after 1 month.

I strongly recommend making heaps or ridges has it aligns the farm land and makes it easy to manage and take stock during gestation period and at harvesting.

Planting space.

60cm by 120cm is prefered, that's the size of 2 table rulers. This spacing helps the leaf to broaden out and have better aeration. 3 to 4 seeds per hole is ideal. Any tool can be used for plating, trowels, cutlass, pole etec. However there is an invented planting wheel by a young lad in Ibadan and is sold for N90,000. Its best used on ridges and makes planting very easy and fast.

Seed Preparation
I had a very terrible experience with my maize seedlings as I noticed after 5days they didn't grow only a few. I looked close and notice foot prints of grass cutter around the ridges. They had dug up the seedlings and calmly eat them up. They had the guts(annoying) to uproot the seeds that had grown ate up the roots and left the leaves on the spot(painful).

I was advised by an older native friend who has had this several experience back in the village to ensure when the seeds are planted I should give the seed a had pressed closing it up rather than leaving it fairly closed for aeration. He advised I also soak the seed in water for 2 hours using seed treatment chemicals( i preferred using antibiotics at 1 capsule per kg of soaked seed) and dry up in the sun for some hours before planting the following. It worked and still working till date( cannot rule out native knowledge).

Cultivation/ Gestation

It's best to ensure immediately the land is cleared and prepared to use herbicides to hold off any emergent weed that may arise after the rains(depending on the weather condition). From experience the rains could begin immediately or during clearing activities. If you use a good android device with the weather app you could detect the rain fall pattern in your area(it works technology cannot be ruled out).

Ones you notice the seeds start germinating after 4- 6 days at most ensure you monitor the rain patterns closely. During a heavy or light down pour of a minimum of 1 hours the soil can remain moist all day long in as much as sunlight is not above 32 degrees for a long period. All these you can monitor from the comfort of your home using your android phone.

Each time I cultivate and noticed that rainfall has not been prevalent for 3 days on, I ensure the crops is wet deeply by artificial irrigation(water hose) or use of watering can. It is important that your maize get the right amount of water(moisture in the first 2 weeks of germination.

Predators/pests

The common predator I have encountered is my neighbours goats and grasshoppers. Its not really cost effective barricading the farm if the resources for such was not factored in more so goats are excellent climbers too. I often times have to physically chase them away as the leaf of maize is very juicy and a favourite for ruminants such as goats.
However I noticed that this same goats do not tamper with their owners leaves. She smiled and showed me what she did. She just swept all the goat excrete, soak it into water made a large bowl of it and used it to wet the entire maize crop she had. Till she harvested they never made any attempt to east up the leaves nor did she have much issues with grasshopper(another native biological knowledge)...... to be continued

THE BENEFITS OF SMALL FARMING

2016-01-08T02:12:00.001-08:00

One peculiar notion quite a number of people have about agriculture is that it still can be the main stay of any economy especially ours in Nigeria, which obviously is still agrarian. This fact has always made series of governments in the time past have agriculture as top in its agenda when it relates to diversifying the economy.

small scale maize farm

The political will to follow through this cause may not have being too conspicuous but this doesn't negate the fact that it is a thriving venture both small and in large scale.

Starting a small scale farm involves as much planning as starting a commercial farm. At some point, the need for expansion would definitely arise and you need to have all that well planned out. Every farming venture however small has got its own challenges that are common to all and also divergent from farm to farm, depending on the mode of operation as well as location.

For instance in crop farming, it varies based on the soil type available in the area you may have chosen to have your crops grown. Bear in mind that no land is barren. With the appropriate soil mix and fertilizer organic or inorganic, the soil contents can be improved to support the growth of your crop.

A small scale holder farm could range from 1 plot to 3 acres, which invariable could give you some reasonable source of income. the weather conditions hear in Nigeria supports crop growth all year round, coupled with indigenous knowledge and ingenuity applied to your farm process.

It is adviceable from the onset of setting up your small holder farm, have it in mind that expansion should be part of your goals and you need to put the appropriate measures in place for such to happen when the time comes. For instance, it is not just enough to cultivate a plot of maize farm and leave the growth to nature to have its course. This has always being the bane in Nigerian farming system and at the end, yield would be rather small and huge losses experienced always at harvest and post harvest periods.

From the seed type to the day it is planted as well as pre-planting and post -planting activities, all should be well documented. Keep records of periods when weeds were sighted and cleared out in your small holder farm. These records will come in handy when you choose to expand. It would give you a clear guide on the expenses you are likely to incur on a larger scale at some time in the planting process.

Starting small, I have had a lot of hard knocks and could accommodate every mistake made even if some thousands of Naira were invested. It's worth the loss, knowledge and experience on a small scale. This has given me a broader perspective and better route to starting the process again better and cheaper. Guess worth, farming, however big or small is not about the capital but management process.

We would be looking at setting up a small holder farm sometime later. Now is the best of times to invest in your small holder piece of farmland.

THE POWER OF MECHANISED FARMING

2015-07-08T03:44:00.003-07:00

One of the challenges faced with agriculture in a Nation like this, is the attitude to which the activity is being carried out. Most of our farming methods are still crude and old. Recently I was faced with developing over 11 acres of prime plot I was given for agricultural purpose and the reality began to dawn on me the need for making agriculture a real business and not a means of survival.

Right from the onset to invest in agriculture, you will need to envisage the point where you would have to choose between reality and mediocrity. It takes a whole lot of business model and strategy to make any agricultural venture really viable. The era of hoe and cutlass is long gone. To make it a source of regular income however little, then it has to be done the appropriate way as a business model.

As much as there has been so much euphoria in the agricultural sector, until it is being handled as a true business model, it still could be a far cry from real income generation. The policies are actually getting its ground and been implemented and also creating a huge awareness, yet it needs to translate into direct income first and trickle down to its value chain.

Oh yes it still could be done manually, but then it would cost a whole lot more, even if the labour is cheap. As cheap as the labour may seem, time in any business is of essence. A good look at turnover in business in relation to time, you get to understand why agricultural mechanism is still the best of options.
It costs us close to $402 (N80,000) to get just 3 acres and 2 plots cleared in about 2 weeks, which would invariable had cost me $40 for diesel and $15 for driver(labourer) if we had the mini-walking tractor to use in just 2 days. The cultivated crop on the piece of farm land is maize. A close look at our project seed plant and harvest without considering bad harvest, then profitability is already on the slide even before growth or harvest is achieved. These are the realities of going into big time farming, mechanised at that.

Most definitely there still would be some gains when manual labour is applied, a cheap one at that but then how do you account for time spent in doing laborious work that should have been done by a tractor. I encourage everyone in diaspora and investors alike to have a medium range and long range view on agri-business in this economy. It's profitability far outweighs its disadvantages, I would be more than glad to assist you in your agricultural venture.

LET THE FIGURES TALK AND NOT THE CROP

2014-10-08T07:10:00.003-07:00

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.

2014-04-04T01:32:00.000-07:00

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 ?

2014-04-01T03:43:00.000-07:00

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

2014-02-17T07:51:00.000-08:00

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

2014-01-23T08:36:00.002-08:00

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.

BENEFITING FROM THE AGRICULTURAL INDUSTRY

2013-12-19T06:09:00.004-08:00

As much there are other forms of investment you could get involved in. One that is always and will continually stand the test of time is Agriculture.

There have been quite a lot of of direct efforts by the government of the day to revamp the agricultural sector and this has been yielding a lot of positivity. The sector accounted for the second highest GDP non oil sector earnings, proving it to be a viable industry. The days of cutlass and hoe farming is beginning to dwindle away. The sector should be looked at like any other business with rich financial prospects for investors.

3 Ways to cash in from the Agricultural sector

1. Get a viable product: it is imperative to know which sector of the agricultural value chain is viable. Currently almost all produce are in huge demand in the nation at the moment. This can be connected to the high population density and a need of man's basic need of food to be met. There are some industry in the sector that are a instant financial success, such as Poultry farming, cassava propagation, plantain farming, water melon, pineapple, cucumber, aquaculture etc. This are some of the sectors you could go into and I would be glad to get you up and running.

2. Acquire the Prime lands: every government within the states would be more than glad to always at every point in time open its corridors to agriculture. Look out for such areas with viability, they are spread all over the geopolitical zones. There are so many prime plots in the western states that have no form of agricultural plantation and have rich soil texture and structure that supports farming. These lands are easily acquired and sold for less than $9,000 per acre http://www.4321.co.il/property/ad706477.aspx. You could also get a lot less if you are purchasing a huge expanse, just like the one we just acquired for plantain farming.

3. Get your business plans together: it is important that you have your comprehensive business plan together, as this would guide you in proper business management. It could also come in handy in acquiring a financial lease from the banks. It is important to note that a good business plan must clearly show your cash flow pattern in the short term and medium term, as well as long term. Do not be tempted to writing a very short term agribusiness proposal showing only a 12 months profit margin period. This pattern would not fly as agric venture needs a medium term business approach to profitability and break even point. Just as I have just concluded one for a client, you need to show how funds would be directly invested in the entire value chain of the chosen agricultural business. Ensure you exploit all the value chain, this is one of the ways the financial institution are harnessing all possibilities in their sector.

One of the major challenges of agric entrepreneur / investors, getting the right business plan that holistically supports their agricultural venture and this is our core strength.
There is no other time to invest in the nations agric sector and make huge profits than now. Make that life changing decision as we step into 2014.

FINANCIAL BENEFITS IN AGRICULTURE 2 …………………………..pathways to farming success………………..

2013-08-23T06:11:00.000-07:00

Every intending farmer wants to ensure his produce is of high quality and quantity to meet the demands of their clients. It’s not debatable that agriculture is not profitable, yet some few small holder farms are barely struggling to survive. In as much as they are putting in much effort to farm their produce, the corresponding output in relation to profit is on the decline.

Here are three(3) steps every farmer should take to enhance steady income generation.

1. Know the product/produce: it is important to have a foundational knowledge of the product you want to cultivate or rear. It’s not just about cultivating maize for instance and making sales. Having an understanding of the climatic condition and the diseases associated with the crop is very essential. Armed with this knowledge will help you as a farmer to reduce the unforeseen risks to the barest minimum. One of the major challenges to any agricultural venture is the risk involved, which is often disease control and theft. You need to know the common disease and take safety steps to combat such, should it occur during the farming period.

2. Draw up a feasibility survey: as important as this is, a lot of farmers have intentionally omitted this aspect of farming and they are paying dearly for it in the long run. A feasibility survey helps to bring into the open, risks and steps that could be avoided or combated during the growing period. It clearly shows you the stage you are in and what to do at such stage. A lot of farmers usually get stocked during the growth phase of their produce; they do not have the knowledge capacity to prepare for the next cycle without losing ample time. Usually, some farmers wait until they have completely harvested all their stocks before planning or preparing for another cycle. Adopting such a process could make you loose a lot of propagation time, especially if you are propagating/rearing an all year produce.www.4321.co.il/property/ad692704.aspx

3. Draw up a comprehensive Cash flow analysis: this is a big challenge for farmers, especially when they are not educated in such. I have often times come across farmers groups and they hardly do such in their record that is if they have any.

To become a successful farmer and trailing your profit margin, you need to understand the three models explained above. Especially drawing up your cash flow analysis, this is the map to farming profit and break even points. Irrespective of the model, fish farming, poultry farming, crop propagation, processing etc you need to have a cash flow.

In the quest to ensuring farmers and would be entrepreneurs take advantage and harness the opportunities of farming in Nigeria, we are holding a seminar tagged: ‘FINANCIAL BENEFITS IN AGRICULTURE’ in September, in Lagos Nigeria.

We encourage every intending agric entrepreneur home and abroad to make a date with us to attend this revealing seminar, as we would be harnessing the opportunities in three agric ventures; POULTRY FARMING, CATFISH FARMING, CASSAVA PROPAGATION.

2013-08-13T07:07:00.000-07:00

FINANCIAL BENEFITS IN AGRICULTURE (1).

…….. 3 things you need to know……………………………

Having highlighted the reasons why banks shy aware from some agricultural venture, it is important to note that agriculture in any form is a very lucrative and rewarding venture. There is a known fact that every living creature needs food to survive. The potential clientele in the sector cuts across every living being.

In harnessing the benefits accrued in the sector it is necessary you have in the following information at your disposal.

1. The kind of venture you want to exploit; as mentioned earlier in my posts, agriculture is majorly divided into two; plant cultivation and animal husbandry. For plants is further divided into food crops and cash crops. Irrespective of the type, it is highly profitable. You need to decide your cultivation preference, either crops or animal husbandry. This needs to be accompanied by the desired knowledge about that chosen venture, plants or animal. Get some basic knowledge about the fundamentals to the propagation of the crops, as well as the animal husbandry chosen. The processes involved in the rearing stage, that is the life span and the possible challenges that are often encountered in the process. Every agric business has got its peculiar challenges.

2. Get the desired land; this we have in abundance in Nigeria getting one isn’t much of a challenge. The topography and soil structure must be such that should support your preferred agricultural venture. There is no point getting a huge limestone deposit site and intend to use it for agricultural purposes its dead on arrival. There are huge expanses of land in the six geopolitical zones of Nigeria that are very suitable for farming. These prime plots are less than N2million naira ($20,000) for one to two acres of land. With such size or even less, you could considerable make good income for yourself in your chosen agribusiness. Putting into consideration your cost and revenue ratios, making profit will be a mile stone away.

3. Get knowledge; this will help you to create a pedestal to which you can lunch out. Do not get tempted to starting too big, test the waters and then sail along. Just as we advise clients it is important you know more of the risks involved and how to avert or better reduce the risk to the minimum. It is only when risk is reduced revenue rise above cost that profit is brought about. Agriculture involves some level of financial planning and intelligence and not just the cultivation or rearing aspect alone. To this end we are planning to hold a comprehensive training session, looking at three (3) agricultural models that anyone can venture into. We would be holding the seminar in Lagos, Nigeria in September. The precise date would be communicated to you in this blog.

Anyone can be an agric investor irrespective of the profession, lawyer, engineer, and clergy, whatever. It is a venture that encompasses any discipline. It’s basically about feeding the populace, the market is well over 130million people to feed, why not take the plunge.

4 Reasons why the banks May run away from your agribusiness.

2013-07-30T09:35:00.001-07:00

One of the main stay of a stable economy, is its ability to provide for its citizens. Quite a lot of developing economies such as China, Philistine, Malaysia, Japan, to mention but a few have successfully provided for its citizen via agricultural venture.

No doubt Nigeria has a nation is blessed with available arable land and natural resources that would support the growth of any agricultural business.

However it takes the support of certain industries to ensure the success of a nation’s agricultural sector. One of such industries is the financial sector.

Quiet a number of banks are not involved in the huge financing of agricultural business. Not necessarily because they don’t want to, but rather the understanding of the life span of the venture is not within their corridors.

The Central Bank of Nigeria and a few of the commercial banks have programmes that support agricultural schemes, yet this is a far cry from developing the sector. Below are some of the few reasons why the banks often shy away from the venture.

1. Life Span of the business: The life span of most agricultural venture takes long time to recuperate the initial investment, and most banks may not have the luxury of waiting that long. Every business has got associated risks attached to it, so is agriculture. Some of these financial institutions do not have the appropriate risk mechanism to ascertain the level of exposure of the risk venture, as a result accessing financial loans may be impaired.

Animal husbandry or crop propagation all take a long time to get the cash flow balanced, coupled with the fluctuating weather conditions. A lot of technical issues are left unanswered and these are some of the factors the banks looks at.

2. Improper business plan: It is important to have a well written business proposal before accessing that loan desired. The plan needs to spell out every detail that is important to the success and failure of the business. The risk factors have to be spelt out to the letter, indicating the Strength, weakness, opportunities and threats of the business. A business plan without these indicators is like car with faulty dash boards. The banks want to see the risk involved in the business and the steps you would take to mitigate against these perceived risks.

Never try to impress with your business plan by stating only the benefits and profits that may accrue. Every business has got its risks. On assumption that there is no risk in your agric venture, just shows that you are not ready for any financial lease and the proposal would definitely be thrown out or flushed.

3. Cash flow statement: Every sector has got its professional jargons. You need to speak in the language the banks understand. The business proposal should clearly state how the cash would be disbursed into various sector of the business. Just showing that the fund would be used to purchase assets and liabilities for the agric business is not enough. There has to be a clear flow of where, when and how it would be shared. The basic salaries of workers, purchase of items(assets and liabilities), proposed cost and selling price, gross income, taxes where applicable etc and most importantly how you intend to pay back the funds and in what manner.

The statement must be done professionally and well tabulated. Make the figures talk, that’s what matters and not how fulfilling the business may seem to you. It’s all about their money and how you intend to pay back feasible. Understand this and you are half way through.

Having done all is not an absolute criteria for getting the desired funds. Everything still falls on the bank accepting to give you that loan facility or not, irrespective of the payback time of their funds.

The Importance of Agricultural Blue Print………..A business plan.

2013-04-03T05:12:00.002-07:00

The success or failure of your farm starts from the business plan you have laid down. It is important to have a plan/ blue print to which stands as a guide. This will help you understand all the necessary inputs the venture requires.

Below are models that should holistically be viewed in your business plan

1. Determine your scale of production: in this regard it is the production output that should be your target. It is very important you know beforehand what your output would look like. This helps to bring into perspective the amount needed for the venture as well as the man power needed to bring it to completion. It is not just enough to assume that your agric business will be on a commercial scale. Have a clear margin of your proposed income and profit written out from the very beginning. Put into consideration the required workforce to bring the plans of the scale of production into reality. Make the figures talk, write them down.

2. Input the cost implication (variable capital): In agricultural venture, not all capital is fixed. Only the land is fixed. Never assume that the equipments are capital neither are they assets, as they invariable take money out of you for periodic maintenance. Funds will be needed in purchasing items such as livestocks, seeds, fertilizers, organic manure, overheads, logistics and procurement etc. The major source of income will be the output of the produce, be it livestock or plants, cash crops or food crops and other added services in the value chain. Treating these liabilities as assets will give you a wrong cash flow pattern for the farm and this could be detrimental on the long run. So many farms run like this have had cash flow problems.

3. Regular streams of income: It is important you understand the economies of scale of the produce you intend cultivating or rearing. The demand trend and its availability during its seasons and off season. This will help you drive your market towards a targeted pattern. In the cultivation of seasonal crops, a backup crop or animal production needs to be put in place, to ensure the stream of income keeps flowing else the farmer may end up selling his produce and would have to wait till the next season. This will only leave long periods of redundancy. Structure the farm output in such a way that the flow of income is regular no matter how little. This structured model will help to carter for the small bills and overhead, don’t forget the machinery will need maintenance, either they were used or not.

4. Envisage risk: It’s unprofessional and cynic to assume that everything will go well because you have been handed a high flying business model. Oftentimes the beginning seems sweet with huge prospects, then the realities of a skipped plan begin to cripple in. At this point the farmer begins to wonder why the losses are coming in and fails to realize that the risks were not factored into the plan. I have come across quite a few in this category, especially in the aquaculture and poultry industry. Every good venture has its own risk, no matter how small. Plan for risks happening, factor in the possibility of losses, this will give you a higher leverage than the other farmer who does not have this in the scheme of things.

In preparing for the risks, you will have a clear understanding as to how to tackle it and reduce the effect on your business. It exposes your anticipated weakness and gives you a holistic approach to reducing that venture weakness.

These risks can’t be eliminated, but can be drastically reduced, so as not to have a high negative impact in the profit figures both in the short and long run

5. Realistic Research: This cannot be ruled out as it helps the farmer identify his market and streamline his produce where necessary. It is not enough to identify the market, but also know the proposed demand for the produce, as this will help put a check in price of produce. An excess in the output will only force the price to drop, usually below the initial capital. This is often the case when the produce along its value chain cannot be properly preserved.

Assuming that the demand will always be on the increase is a wrong notion, as this will only lead to glut and crash in prices. I am not saying prices should always be on the high side, far from it. I am saying this based on the cost on overheads and production incurred when the goods are produced in excess in anticipation of supply.

In coming up with your agric business blue print, it has to be holistic. I often advice clients to have me hand them a complete overview of the agricultural venture they intend investing in rather than just having a business plan, showing only the income and profit. Neglecting risk and its mitigation is a short step away from failure.

It is important you get a complete step approach all the way as a guide as this will bring about the profitability in the business.

Please your feedback and questions will be highly appreciated as my team and I are here to ensure your farm succeeds.

FARMING AS A BUSINESS MODEL 2

2013-02-26T08:12:00.004-08:00

We talked about the value chain and the angle to which each of the concerned viewed the agric business. Let’s see the point of correlation between the farmer, market audience and the value chain.

The farmer’s expectation

Every farmer wants to get good seeds that are disease free and ensure they grow at the shortest possible time. He wants to ensure the yield are up to his expectation and supplies his clients as at when due and in the right demanded quantity. A shortfall from any of these keeps the farmer worried about the survivability of his farming venture.

However a lot of these expectations have been impaired by lack of finance and adequate modernization of the process. It takes the modernization of agricultural process to make it completely commercial venture. The old practice of crude tools will in no way result to profitability no matter the input of the farmer. Just like other business models, it takes volume sales and turn over to achieve profitability.

The Investors concern

The investor is worried about every sector of the value chain, as this helps to induce profitability and reduces down time. From the quality of seeds to the harvesting and production of the produced as finished goods.

In case of food crops, the quality of seeds/ vegetation used is of great concern, as this helps to give the agro industry a direction to where its going. A low quality seed is sure of not boosting the profitability of the industry. Take for instance the pineapple value chain. The fruit comes in various species and they differ in the juice production. There is the species that is small, not juicy but rather very sweet. The other comes in huge sizes, with thick fibre, juicy but not sweet. The output in terms of fruit juice is a function of what the agro allied industry is aiming at as its finished product.

Same goes for oranges, mangoes and bananas.

As lucrative as farming venture is, it requires an understanding of the present day environment and the antecedent in the sector. In an economy like Nigeria, it is about understanding the economics of scale; the demand for the produce, its availability and sustenance.

One of the challenges faced by the Nigerian agricultural sector is the processing and preservation of farm produce. Right from the farm to the point of sale, this is where the industrialization of the sector would be appreciated.

Until the right enabling environment is put in place, investors may still be faced with the high cost of doing farming business.

It is important to know the sector of agriculture you desire to venture into, food crops or cash crop. Having a clear understanding helps put the business model into perspective. In subsequent post we would be looking at a general agricultural business plan that is bankable.

FARMING AS A BUSINESS MODEL 1

2013-02-21T08:16:00.000-08:00

Every business first thrives on proper planning. The same it is for farming as a business model. It should be looked beyond just providing food for the populace, but as a venture that needs continuity and sustainability.

One cannot rule out the fact that an enabling environment needs to be created for business to thrive, howbeit; there are chances of agricultural produce thriving irrespective of unforeseen policies. Take for instance the propagation of cocoa by farmers in Ondo state, cultivation of watermelon by women in Abeokuta, to mention but a few. These businesses however little in capacity are thriving.

One of the major challenges faced is the articulation of these ventures into a bankable business model that requires adequate financing, proper logistic processes and marketability. Every agric business is bankable and marketable; the major challenge is the proper understanding by the financial institution how this venture operates.

In the agric business model, acceptability may not be much of a problem, as everyone must eat one way or the other. Sustainability has always been the challenge. This is also caused by inconsistency in policies handed over as well as its continuity. Farmers all over the nation have learnt to adopt and adapt to policies of the present day, the result of change in governance has often resulted to changes in practice models by these farmers and this has affected their productivity.

Risk Variation

Just like any other business model, it has also got its risk, ranging from preservation to processing. This may have been attributed to poor infrastructure, such as good roads, storage facilities, and lack of ingenuity. It would amaze you to know the amount of water melon, plantain, bananas, oranges that lie wasted in the dumps of Ketu and Mile 12 markets in Lagos.

Again one would want to say and encourage the springing up of agro-allied industries, which could embrace the processing of these foods. Such attempts are been greeted with high cost of taxes and power generation rate. Seen the reality of these agro industrial challenges could discourage any would be industrial investor. In this light, the growth of that sector becomes inimical, there by affecting large scale production by the farmer.

Risk/Profit analysis

Farmers would want to reduce their risks if shown the way, as no one would like to see his produce getting spoilt. The quickest way this could be achieved is by giving incentives to industries that have these produce as part of their value chain.

From the farmers point of view, the encouragement they need is the assurance that their produce will be bought. A case scenario where the agro allied industry invests directly in the farmers produce will help to keep both the farmer and the firm in business. There are some firms that have adopted this farmer/ business model approach and have favoured them considerably.

From the view of the agric industrialist, it’s all about the value chain, from the farmers view, its all about sales and income. The marriage of these two factors will help to put both parties on the profitability scale. Only then can continuity be possible and sustainability embraced.

2011-11-05T00:57:00.000-07:00

Nine (9) Important Reasons why you need to invest in agriculture.

Hello!

Welcome to yet another revealing edition of green collar. During the course of the week I came across publications that gave a good remark on the need to revamp agriculture. To this end, I came up with the following reasons why the green sector will thrive.

1. Nigeria spends close to N94 billion importing fish annually.

2. Over N305billionis spent on the importation of rice.

3. Only about four percent of her total budget is allocated to agriculture.

4. The population of Nigeria is on the increase on a yearly basis.

5. Over 145million people will need food to survive another day/week.

6. The mad rush for white collar job is on the increase, leaving a wide gap in rural population.

7. It is not as capital intensive as you may have thought.

8. It is a sure and steady stream of income business with little or no encumbrances.

9. For as long as production is on, money keeps flowing into your account.

Scales of Agric business you should do

Every agric business has got a level of scale of production, depending on your vision of farm enterprise and capital accrued to you.

Agriculture as a business ranges from homestead farming to small scale farming to medium enterprise and commercial venture.

For a homestead agric farm, with as low as six hundred (N600) I made an income of Five thousand one hundred and fifty naira (N5,150) in eight weeks, selling ewedu. I put in One hour thirty minutes work per week.

The scale of agric business you want to do is a matter of choice and this is one big decision you need to make.

We would offer you assistance in coming up with a viable plan in any agric sector you want to venture into. Its just a phone call away.

Till next edition when I will be demystifying other agricultural produce.

For enquiries you can mail me on gebimo@facebook.com or call, +2348023563354

Let’s help you smile to the bank!

Yours in Farm

Ghomorai Williams.E

EGRESS consulting

2011-11-01T00:54:00.000-07:00

To really reduce poverty level in Nigeria, there has to be a diversified portfolio of other sectors of the economy, other than crude oil. Each time I read submissions by key stakeholders in the economy, on the need to diversify into agriculture as an active source of revenue for the nation, the happier I get. That someone somewhere and that is probably you would take advantage of this yet to be harnessed sector of generational wealth creation.

In the previous blog post, I made mention of five things you need to do before setting up a farm. You may want to go over that.

This web log has been created specifically for you to sharpen your investment skill in various agricultural sectors and take position to ensuring steady stream of green income for you, your family, your employees and the nation at large. Subsequently I will give an extensive ‘How To’ in these various agricultural produce and how you can profit from them viz-a-viz; crop farming (ewedu, soko,ugu, maize(varieties), yam, sugarcane, plantain, watermelon, okra, tomato, etc. Animal husbandry (fish farming, goat rearing, snail rearing, pig farming, cattle ranching etc.

Let me give you few reasons why you will definitely succeed by making steady profit in agricultural venture.

The China Secret

China was able to grow her agricultural economy through massive transformation from crude practices to modern practices, even at small scale levels. With a population of over 1.3 billion people, the government encouraged firms to give out low cost tractors to small farm owners to boost their work output. In just ten years, China created multimillionaires out of these small farmers.

This may not be the same in Nigeria. If necessity is the mother of invention, then it is an opportunity for you to legitimately milk the agricultural cow with gladness.

With a population of over 150 million people and still growing, Nigeria as a nation spends just three percent of her budget on agriculture putting pressure on the food industry.

This is where you need to fill in the gap. Agriculture is not as capital intensive as you may have been made to believe. Holistically, policies need to be put in place to ensure investors in the sector reap the benefits accrued to them.

The survival of the urban cities you and I live in is a function of the quantity of food rural dwellers are able to supply.

With an investment of about Six hundred and fifty thousand naira (N650,000) in poultry birds, you will conveniently make an income of about ten thousand naira (N10,000) daily, seventy thousand Naira (N70,000) weekly and two hundred and ten thousand naira only (N210,000) monthly.

As the agricultural economy is resurging, it is an opportunity to make enormous wealth by investing to put food on the table of many in exchange for money.

In the next edition, I would show you some facts in agricultural sector and ways to go about them.

Remember you can keep that job and still be a successful farmer.

For enquiries, you can mail me via my face book page at gebimo@facebook.com or call +2348064518907, +2347029360975

Let’s help you smile to the bank

Yours in the Farm

Ghomorai Williams.E

2011-10-29T22:22:00.000-07:00

Hi welcome to GREEN COLLAR. My name is Ghomorai Williams. E I am a farm consultant and the Project Director for EGRESS consulting. In the next few weeks I would be showing you how and where to invest in the agric sector, and making a steady stream of income for yourself.

There are various sub sectors in agric business that you can conveniently venture into once your home work of feasibility report has been done.

Of a few agricultural ventures are crop and animal husbandry. Such as vegetable farming, maize commercialization, cassava, plantain, ewedu, pumpkin, lettuce, water melon etc. Also in the animal sector are Poultry farming, Fish farming (aquaculture), pig rearing, goat rearing, snail farming, ostrich rearing, crocodile culture etc.

As I take a few weeks to explain practically some of the venture business, it is my earnest desire to see that interested investors in the farming business get the bests of information to set them on the pedestal for wealth and job creation for the unemployed.

For an economy to thrive there has to be a vibrant agricultural program that ensures there is enough food on the table. The challenge with the Nigerian economy is not the issue of spoilage as some quarters have reported, but it is the political will to revive the sector that counts. From an investment point of view, any sector that needs revamping is a potential sector for wealth creation, and this is what I tell people who want to go into green collar jobs (agric business). This sector is too large for government to handle, let alone monopolize it. What ever policies that are too be made, you can be rest assured it will be in the interest of the farmer and the population. This means more frequent visit to the bank isn’t it.

Ok enough talk lets get to it.

How interested are you in investing in agriculture. Or do you plan to remain in that Just Over Broke (JOB) all your life. Let me present to you a wonderful, lucrative, and medicinal agricultural businesses that would give you peace of mind and a control of your financial future.

Below are important things you need to know before embarking on any farm project.

5 important things to know before setting up a farming project.

1. GET A PLAN: it is very imperative that you get a laid down plan of the kind of venture you intend to go into. Every agric business is not the same. Vegetable farming cannot be compared to animal husbandry. Your investment is all about choices in you preferred investment and why. Like I tell some prospective clients, have a long view of what you want to do and achieve in the venture. Do a comprehensive run down of the proposed farm activities in black and white. This helps to bring the project into clearer perspective.

2. DO A MINI RESEARCH: I am of the pinion that you go and check out other farms within the area you want to site your project, or ask friends and acquaintances for references. It is better to get a first hand testimonial experience on the aspect of agriculture you want to venture into. It would be a wrong assumption to conclude that maize farming is not as profitable as poultry or fish farming, If you are convinced that you are right, then a second thought, why is every one not into the other products other than maize?

3. SEEK PROFESSIONAL ADVICE: I remember vividly, during my early days in school, a client once needed my services as a consultant for his catfish farm. While into the contract, I advised him of the challenges he would face in the water chemistry, of the farm water source, he said the Holy Spirit will not let such happen. Well I backed out of the contract, because he (Pastor) was unyielding. Four days after he stocked his fingerlings, the fishes all died of high acid content as a result of share carelessness. At that point there was nothing I could do, other than to put before the client his errors, and he really had to lick wounds. In any business, Professional advice can not be thrown into the air. So seek one.

4. HOLISTIC FEASIBILTY REPORT: As part of the plan, to your preferred business, you need to hire the services of a good consultant to carry out a comprehensive feasibility survey on the project type, either vegetable, or animal husbandry. This report goes beyond cost analysis of income. It must be such that shows you in black and white the construction preferences and the cash flow pattern of the venture. Unlike a proposal, it reveals the areas of possible expansion and other alternatives. So many a clients would often ask me to prepare only a proposal, and would often neglect the feasibility report, only to inquire of a way forward few months into the project, which the feasibility survey report, would have given a clear path to the entire project. A case of penny wise pound foolish often times. Please try to avoid such; it is a sure way to fail on the long run.

5. HAVE A GOAL (VISION): in one of my conservation with a potential client, I inquired of his plan for his integrated farm, he said he needed something that would bring in income for him at least money coming in. I was polite to make him understand that it takes more than that, what if the venture crashes or doesn’t meet the earlier expectations? He paused for a while and said God will not allow that. This was my response, God allow certain things to happen to prove our naivety in not taking some certain precautions that we over looked.

In business, either agriculture or otherwise, income is not the ultimate. Income is not a guarantee for profit. Income could also be attributed to losses. Thriving in this line of business (agriculture and sub-sectors), it is beyond income. You need to look at reducing losses and preventing them from taking a toll on the farm. Even when they do occur, you are prepared to combat such.

Agriculture is a promising and lucrative venture to do especially in Nigeria. The population will always increase, as more people are justly for white collar jobs, don’t forget they will have to feed their families, and that is where you come in to offer your products. The Gap in the agric sector is too wide for government alone to bridge. Be a part of this over N150Billion industry.

In subsequent posts, I would be discussing on possible agric venture you can go into.

I would appreciate a feed back or questions from you. You can reach me through my mail gebimo@facebook.com or call, +2348023563354