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M06 Farm Management 1 African Organic Agriculture Training Manual Typical challenges to farm management Limited income sources Limited savings potential Tendency to overexploit land due to limited land ownership Land scarcity Labour shortage Inefficient use of farm resources High expenditures on farm inputs Low income safety

Typical challenges to farm management...African Organic Agriculture Training Manual M06 Farm Management 6 Calculating farm profit Sources of money: › Selling farm products › Hiring

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Page 1: Typical challenges to farm management...African Organic Agriculture Training Manual M06 Farm Management 6 Calculating farm profit Sources of money: › Selling farm products › Hiring

M06 Farm Management 1African Organic Agriculture Training Manual

Typical challenges to farm management

Limited income sources

Limited savingspotential

Tendency to overexploitland due to limited landownership

Land scarcity

Labour shortage

Inefficient use of farmresources

High expenditures on farm inputs

Low income safety

Page 2: Typical challenges to farm management...African Organic Agriculture Training Manual M06 Farm Management 6 Calculating farm profit Sources of money: › Selling farm products › Hiring

M06 Farm Management 2African Organic Agriculture Training Manual

Characteristics of an ideal organic farm

Successfully managing natural resources while achieving social goals

Ensuring safe nutrition for the family

Ensuring good and fair working conditions

Ensuring sufficient productionfor subsistence and income

Encouraging learning andapplication of local knowledge

Page 3: Typical challenges to farm management...African Organic Agriculture Training Manual M06 Farm Management 6 Calculating farm profit Sources of money: › Selling farm products › Hiring

M06 Farm Management 3African Organic Agriculture Training Manual

Characteristics of an ideal organic farm

Successfully managing natural resources while achieving economic goals

Satisfactory and reliable yields

Diversified sources of incomefor high income safety

Low expenditures on externalinputs and investment

High efficiency in productionto ensure competitiveness

Page 4: Typical challenges to farm management...African Organic Agriculture Training Manual M06 Farm Management 6 Calculating farm profit Sources of money: › Selling farm products › Hiring

M06 Farm Management 4African Organic Agriculture Training Manual

Characteristics of an ideal organic farm

Successfully managing natural resources while achieving ecological goals

Prevention of soil erosionand compaction

Increasing soil organic matter

Recycling farm-own organicmaterials and minimizing useof external inputs

Promotion of naturaldiversity of organisms

Page 5: Typical challenges to farm management...African Organic Agriculture Training Manual M06 Farm Management 6 Calculating farm profit Sources of money: › Selling farm products › Hiring

M06 Farm Management 5African Organic Agriculture Training Manual

Example: farm map indicating the key resources

Bush (4 acres)Cassava + Pigeon peas

Sweet potatoes

Maize + Beans

Kraal

Grazing area

Bush and Trees (3 acres) Coffee (1 acre)Vegetable garden

House

Kitchen

ToiletHill

100 m to the well

Page 6: Typical challenges to farm management...African Organic Agriculture Training Manual M06 Farm Management 6 Calculating farm profit Sources of money: › Selling farm products › Hiring

M06 Farm Management 6African Organic Agriculture Training Manual

Calculating farm profit

Sources of money:› Selling farm products › Hiring out of labour,

tools, machinery or renting of land

› Off-farm activities or services

Total = Income

Uses of money:› Household needs› Farm variable costs› Farm fixed

Total = CostsProfit = Income – Costs

The balance betweenwhat I earn and whatI spend is my profit.

Page 7: Typical challenges to farm management...African Organic Agriculture Training Manual M06 Farm Management 6 Calculating farm profit Sources of money: › Selling farm products › Hiring

M06 Farm Management 7African Organic Agriculture Training Manual

Strategies to improve long-term productivity of the farm

Reduce production risks:› Diversification› Build soil fertility› Reduce external inputs

Improve overall production:› Use improved adapted

varieties› Improve soil fertility› Ensure proper pest and

disease management› Integrate animal production

Enhance value offarm products:› Adopt profitable

enterprises› Improve product

quality› Establish storage

and processing facilities

› Obtain organic certification

Reduce expenses:› Produce own manure› Produce own seeds

and planting materials

› Make own pesticides› Share equipment and

machinery

Page 8: Typical challenges to farm management...African Organic Agriculture Training Manual M06 Farm Management 6 Calculating farm profit Sources of money: › Selling farm products › Hiring

M06 Farm Management 8African Organic Agriculture Training Manual

Purpose of planning

What the farm islike now.

What we want thefarm to become!

Cyclical planning

Page 9: Typical challenges to farm management...African Organic Agriculture Training Manual M06 Farm Management 6 Calculating farm profit Sources of money: › Selling farm products › Hiring

M06 Farm Management 9African Organic Agriculture Training Manual

The planning process

1. Analysis of the farm situation 2. Setting goals

3. Action plan4. Monitoring

+Farm profitResources

+Farm profit

Design theideal farm

Goal Activity …

Goal 1

Goal 2

Goal Activity …

Goal 1

Goal 2

Page 10: Typical challenges to farm management...African Organic Agriculture Training Manual M06 Farm Management 6 Calculating farm profit Sources of money: › Selling farm products › Hiring

M06 Farm Management 10African Organic Agriculture Training Manual

A generic farm record for each plot

Date Activity Labour Other Expenses (inputs) Crop Harvest

Day/month Descriptionof activity

Labourdays

Cost/day(Shs) Item Quantity(kg) Cost Quantity

(units)Value(Shs)

12/2 Seed 50 2000

15/3 Ploughing 6 40

30/3 Planting 5 40

Average labour rate value: 20 Shs/day Intercrops harvest value = D

Total

Farmer name: Year: Crop: Area under crop (acres): Intercrops:

Page 11: Typical challenges to farm management...African Organic Agriculture Training Manual M06 Farm Management 6 Calculating farm profit Sources of money: › Selling farm products › Hiring

M06 Farm Management 11African Organic Agriculture Training Manual

Farm diary

Date Activity Quantity Person responsible