The farming business – what every aspirant farmer should know

Hamlet Hlomendlini is a senior agricultural economist at Agri SA.

Email him at [email protected]. 

The debate on land expropriation without compensation is now moving to the provinces, where public hearings will be taking place from 26 June to 4 August. The big question that is often not asked is whether South Africans, particularly those who are not involved in agriculture, know and understand what farmers do. 

This week, I will address this question, especially for those who believe that land expropriation without compensation will perhaps magically turn them into instant farmers. Contrary to what they may believe, I can break it down for them into two words: it won’t. 

First of all, agriculture and farming are not just about land. The latter is just one of many factors that, when correctly combined, result in a successful farming business. This is the first important thing that aspirant farmers need to understand. 

This leads me to the second point: can anybody be a farmer? The simple answer is no. It always baffles me how easy people think farming is. Having a piece of arable land does not mean you are a farmer, or that you can farm. 

APART FROM PATIENCE AND SKILLS, FARMING INVOLVES FINANCIAL AND LEGAL ASPECTS

HARD WORK AND PASSION

Many people who thought farming was an easy business venture to get into have unfortunately learnt the hard way that it is not. They have come to understand that, indeed, this is not just a matter of access to land; it is extremely hard and requires a lot of patience, which could easily run out if not accompanied by loads of passion. 

Aspirant farmers must understand that knowledge and skills are required to make a farming business work, and this takes years to acquire. Yes, you need land for production to take place, but farming encompasses many other essential aspects before and after production. Whether it is crop or livestock production, or any form of farming, these principles remain the same. 

Apart from knowledge, skills, patience and passion, a farming business encompasses the financial and legal aspects of acquiring land and other assets needed to farm, such as tractors, equipment, buildings and fertiliser, among others. Farmers must also have a general knowledge of science, technology and engineering, as well as knowledge of marketing, sales and distribution.

A BUSINESS APPROACH

While farming is a business, it is also a job and a way to earn money. For most commercial farmers, it is their main source of income. 

Because of the passion they have for what they do, farmers invest all their time and resources into farming. It is only through farming that they are able to pay their bills, employees and taxes, and ensure that operations on the farm run throughout the year, season after season. 

Although this might seem obvious, man)’ aspirant farmers do not know that farming is the riskiest of all businesses. It can break and bankrupt you, and will test your mental strength to the limit. 

Lastly, aspirant farmers must understand that, since they intend to venture into unknown territory, they need good experience to have a chance of making headway in the industry. 

Many people also do not realise that most commercial farmers have tertiary qualifications and studied topics such as agricultural economics and animal or soil science, among others. 

Some farmers even study business or finance, or similar topics, to enhance particular skills that will benefit their farming businesses. 

My advice to aspirant farmers is that they must understand that to be successful farmers, they need good business sense and experience. Without this and all the other aspects mentioned, failure will unfortunately be inevitable.