mb.com.ph | June 18, 2014

We have often seen seed companies putting up demo farms to teach the farmers how they can grow the seeds that they are distributing. That is also being done by government agencies in teaching farmers how to grow rice or corn properly.

Now, we have been told that a supplier of chemical inputs and seeds is changing its strategy. Instead of just teaching the farmers how to plant their hybrid rice, it is going to teach them to become farmer entrepreneurs.

That is a good idea because that will make the farmers exploit the opportunities that are just sitting around. That could make them more competitive in the marketplace.

What are some of the things that could be taught to the farmers so that they will regard farming as a business?

RECORD KEEPING – One of the things that could be taught to the farmers is keeping records of many things. A record of the date they plant a certain crop, for instance. A record of how many days a certain crop will be ready for harvest. A record of how many bags of fertilizer (at how much) were applied to the rice crop during one season. And so on.

The farmer could record all the cash expenses and then the total sales. With that record, he could easily tell if he is making money or is losing money.

He could make comparisons of his expenses and income from different crops that he is growing. Then he will know which crop is more profitable to grow. Then he will know what crop he should focus his efforts on.

One person who has kept his records on actual production cost and total sales of his organic pig production project is Jess Domingo of Alfonso Lista, Ifugao. As a topnotch accountant who gave up his corporate job to become a farmer entrepreneur, he kept track of his expenses on feeds, weanlings, labor, electricity and water.

Because of his accurate recording and computation of expenses, he readily saw that organic pig production is very profitable. The reason? He has come up with a fermented feed formulation that costs almost three times less than the cost of the commercial feed in the market. Now he is ready to expand his organic piggery.

Because of Domingo’s actual recording of the cost of producing a piglet for fattening, he breeds his own sows so he can produce his own piglets for fattening. By his own computation, it costs him only about P675 to produce a piglet for fattening. If he were to buy from an outside source, he would be paying about P2,500 per piglet. That means he actually saves P1,825 per piglet by producing his own weanling for fattening.

MARKETING – Marketing strategies are what the experts can teach the farmers. Timing of production for an identified market can result in a profitable farming operation.

For instance, the farmer is aware of a big farming expo which could be staged by the government or by the private sector. Just like Agrilink which is usually held in the first or second week of each October. This is a market where the farmer can produce ahead of time what he could sell during the big event.

One example is Ernesto Abalos who prepared for his bestseller last year. He produced a lot of Paraoakan chickens, mature and small ones. He prepared a lot of roosters for sale because he anticipated that gamefowl breeders would like to purchase some for their own breeding operations. And he was right.

He also prepared a lot of female layers because he knew raisers of native chickens are looking for Paraoakan for free-range raising. He was after those who want to produce native chicken for meat. And also for eggs because there is a growing market for native chicken eggs.

VALUE OF CLUSTERING – Farmers could also be taught about the value of what is often termed as clustering. The farmers form a cluster (or a cooperative) so that all of them will benefit. As a group, they can more easily ask for assistance from the Department of Agriculture, for instance. As a group, they can procure their inputs at more reasonable prices. Suppliers of inputs provide discounts for volume purchases. As a group, they can also market their produce together so that they can ask for the right price.

VALUE OF SAVING AND INVESTING – The trainors can also teach the farmers the value of saving and investing what they earn.

We remember a couple who got married right after finishing high school and were given a one-hectare land to cultivate by the parents of the groom. They planted corn and saved all the income from their first crop. For their daily needs, the man purchased ice candy from the town and peddled the same in his barrio.

The saving was used to rent a piece of land so they can produce more corn and save more money. When they had saved enough, they bought more land. Some owners also mortgaged to them their properties, which eventually became their own also.

After several years, the couple had become owners of more than ten hectares. And they also became financiers. Townmates who needed money to buy inputs went to the couple for loans payable after harvest. Then they also became distributors of farming inputs which they supplied to the farmers who went to them for a loan.

The woman was also able to put up her own little grocery in their barangay. They have become farmer-entrepreneurs.

Actually, there so many other things that the farmers can be taught so they will become successful farm entrepreneurs.

Source: Turning farmers into entrepreneurs