Production Economic Support
With the change of the nature of competitiveness from land labour and capital to information and knowledge, the root of global agricultural competitiveness is embodied in farming systems and farm management practices. This division research and analyse the relative competitiveness of local farming systems and management practices in relation to international best practice. Due emphasis is also placed on resource issues with prominence given to alternative and sustainable uses of scarce natural resources. The results of these actions are wrapped in advice packages and disseminated to the whole spectrum of clients.
Finance is one of the important requirements for any business to operate. However, access to finance and information continues to be a challenge for many businesses in South Africa. It is for this reason that Production Economics division has an area that focuses on development finance. This area aims at ensuring that Western Cape farmers stay abreast of any agricultural related funding opportunities that exist in South Africa. This is achieved through continuous research and engagements with various financing institutions. These are both public and private institutions that provide economic development support through various direct and indirect financing programs.
Click here for sources of finance for farmers.
To assist producers with their financial and production planning, Agricultural Economic Services has a wide range of enterprise budgets for most of the commodities in the Western Cape. Agricultural Economists within Production Economics Division gather this information from producers. The information is processed as aggregates and the output is referred to as a “representative enterprise budget”. This enterprise budget is a useful tool or instrument for planning and for an on-going financial management of the farm business. McGrann (1995) notes that it is important for farmers to understand the terminology that are documented in an enterprise budget. The reason is that if producers do not understand the terminology in the budgets, the information may be used incorrectly meaning that the farmers may implement wrong decisions.
Click here for a list of enterprise budgets
This is a service rendered under Production Economics division. It aims at evaluating businesses plans, financial statements, and any other finance related transactions to determine their performance and suitability. Furthermore, it focuses on analysing whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment. Financial planning & analysis helps a business to be aware of their strengths, weaknesses and areas of improvement thereof for future purposes. Therefore, this service is essential for businesses in their decision making.
The Financial Record-Keeping Programme (FRKP) offered by the Western Cape Department of Agriculture is responsible for assisting farmers with a well-functioning, complete and accurate financial record keeping system.
The Department of Agriculture Western Cape can advise and support you with your FRKP implementation plan.