Windhoek
Agra ProVision’s breakfast meeting held in Grootfontein with the theme “Financial & Risk Management for optimised dryland cropping under uncertain conditions,” discussed how to estimate and assess risks and how to plan the farmer’s required intervention, considering limited rainfall.
The well-attended discussions included how to anticipate, calculate, project and prepare for when inputs vs. outputs differ significantly. This type of assessment is part and parcel of smart and practical farm financial management. Planning and projections are especially important during years when farming conditions are uncertain.
The gathering focused on optimised dryland crop production and the event gave insight and advice to farmers regarding proper farm financial planning. The gathering was well attended by crop farmers and industry stakeholders.
In his opening remarks, Wessel Visser, Agra ProVision’s Manager of Social Business and Services reiterated the importance of sharing information, with breakfast meetings being the perfect platform to empower stakeholders in the sector to implement best practises for sustainable production. Visser continued his presentation by stating; “Agra ProVision realises that farmers sometimes fail to be able to manage the financial side of running the enterprise, called “farm.” Thereby, they experience cash flow problems, especially in years with below average rainfall and unfavourable economic conditions. We are confident that the information and advice presented here today is practical and can be applied; to ensure that through proper planning, the obvious risks can be managed and anticipated.”
Dirk du Preez, FNB Agri-Manager for central northern region introduced the topic to the participants, by explaining how risk occurs. He explained that risk variables include: weather, pricing, input costs, government policies and the socio-economic climate in the country and international market conditions. “However, although we are well aware of these risks, there are different ways of mitigating them,” he noted. “Like anyone, farmers need to avoid running into financial challenges. Some principles of risk mitigation include: diversifying and increasing your income stream, budgeting realistically and conservatively, know your farm status in terms of its production capacity measured in N$/ha and farming both effectively and efficiently,” he explained to the participants. He continued, “It is also important to ensure that your return on investment is above the inflation rate, and take calculated risks.”
On the forecast for the upcoming season, Du Preez predicted that the season will have limited rainfall, the maize prices will escalate and livestock prices will decline. “With the uncertain year ahead for dry land crop farmers, I urge you all to take proper precaution to manage the season ahead,” he advised.
Agra ProVision offers interactive information sessions every second month to facilitate networking and brainstorming among stakeholders and individuals on topics relevant to the agricultural industry. These sessions are open to members of the public, subject to advance confirmation of attendance.