Home: Agricultural Economics: EMERGING FARMERS
About our beginner farmer policy
by Johan Stander
The settlement of small-scale beginner farmers is a very high priority. Successful settlement ensures long-term stability, but this is only possible if projects are evaluated in an objective manner on both a social and economic basis.
Taking into account the structure of agriculture in the previous dispensation, a well-considered agricultural policy was developed in which the participation of the beginner farmer plays an important role.
We determine the viability of a project by evaluating its business plan and projected financial reports. A practical, suitable computer programme is used to evaluate projects for new entrants into agriculture. Objective decision-making is only possible if the following criteria are known to the decision maker:
- the cost / benefit ratio
- a cashflow analysis over time
- a sensitivity analysis on price, cost of capital goods (interest), and other expenses
- the internal rate of return
- labour issues
Political stability within agriculture is only possible if the correct decision-making process is put in place to ensure job creation, higher levels of production at lower input costs, and the upliftment in the quality of life of new farmers.
