The myth of Commercial Farming


 Dear Young Farmer,

 

During our last fireside chat, one of your friends indicated that the reason he doesn’t consider commercial farming is because he only has 1 acre of land (less than 0.5ha), another mentioned how she doesn’t practice the tenets of commercial farming even though she has large tracts of land. This is because her company has not grown big enough to warrant some of the systems and structures that underpin commercial farming. And yes you are right, I am definitely going to challenge what I call the myth of commercial farming which is essentially about size.


The traditional definition of commercial farming is a type of agriculture that involves the production of crops or livestock on a large tract of land with the primary goal of generating profits by selling products in markets. My problem with this definition is the estimated 1.5 million small scale farmers producing 80% of Africa’s food requirements and for it to be distributed it definitely must be sold at some market. I posit therefore that there is need to relook the definition to cultivate commercial farming within the small scale farming sector. Is it far fetched to argue that it is not necessarily the size of the land that matters but rather the mindset and the practices employed on a small piece of land that gives rise to a new definition of commercial farming.

 

 

I will go further to argue that when a farmer is using their 1 acre to grow crops and /or livestock primarily for profit, they are into commercial farming. This requires a shift of the mindset fro that of a farmer to that of an entrepreneur. This I believe is the missing link in our African Agricultural sector, the mindset of the entrepreneur. Notice I did not say the mindset of te hustler which is quite dominant in Zimbabwe, people who become involved in farming because they are looking for a quick buck. You will see that they are constantly looking for short cuts,resist invest in knowledge, skills or the land even in proper organisational structures and systems unless they are a way of making more money.

 

If you are going to produce for profit as a tobacco farmer on 2ha in Mashonaland Central, or as a poultry farmer with your batches of 100, or the horticulture farmer in Norton, Domboshava or Marondera producing for your local supermarket using your backyard then you need to put in systems and structures.Experimenting to find your ideal organisational systems, structures and culture while still small allows you to build a strong foundation for growth and value, waiting to try it when you are at 1000 birds is what has led to huge financial losses, mental break downs, burn out and strained personal relationships for many farmers.

 

The answer for me is to be “small” and commercialise operations which requires cultivating an entrepreneurial mindset which includes goal setting, utilisation of business plans, intense ecosystem building, advanced financial knowledge and implementation of risk management.

 

The question it would seem is how to do this. My long and short answer is invest in a  coach to walk with you during this building process, it’s a worth it and yes you can buy me a Bells at the next fireside chat. If you are stuck, get in touch with me and we will work it out together.

 

As always I welcome your thoughts and no, rolling your eyes at me doesn’t count as sharing your thoughts.

 

Until the next time,

Rutendo

 

 

 

 


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