Three Reasons You Shouldn’t Venture into Agriculture!
Hold up please, did Hastom just say you should not look the way of Agriculture. Trust me, you didn’t just hear some blasphemy. Facts, figures and real life instances attest to the headline and if you don’t get these three issues thoroughly addressed, your best bet is to leave you cash stashed up wherever they are or save them up in some financial institutions where you get billed for keeping them. You want to know why, its because, no one buys insurance when he needs it.
Statistics prove that 35% to 65% investments into agriculture fail on a scale of 100. It gives a 1000 reasons why you shouldn’t look into agriculture, however, there are basic yet important factors to consider to maximize this venture. In this blog post, we would talk about the 3 main reasons that encapsulates the 1000, as much as we would discuss what to avoid doing. Stay with me.
- Excess funds: Mr. Adewale works in a multinational oil company, he’s got an enviable monthly income. But, however he’s tired of the status quo_Late nights and early mornings and he wants to spend more time with his family, at the same time, he needs as much income as his salary. Then he chose the best alternative, agriculture, settling for the branch of agriculture with quick turnover returns in 3 months or 6 months at maximum of the venture immediately after his resignation.
Day old chicks were bought from a recommended poultry farm to be raised by Baba Isiaka who raise 500 chicks across the neighborhood. The building was not properly disinfected; the vaccination schedule was not adequately administered, leading to an outbreak of viral diseases and mass death. At 3 weeks old, more than half of the birds are gone, continuing morning and night of each day. Now it was time to shift blames; But you had the experience, I provided the resources needed and more. Your birds don’t die like this; you’re just been wicked says; “Mr. Adewale”. I had the experience of 500 birds not 10,000, this is my first time of handling such a huge number pleaded; “Baba Isiaka”. He had the resources and wants to start big but he didn’t have the agricultural financial literacy to divert his funds and he ended up losing.
In the essence of agriculture, a proper balance is stricken when inputs are low and outputs are high, Mr. Adewale lost a lot of money due to his lack of financial knowledge in agriculture. His excessive funds would have brought huge returns on investment into agriculture and a session with an agro-consultant with solid experience could have prevented the dismal outing.
- Knowledge and Experience: “Agriculture is bae.” “Agriculture is a fast way to make money while sleeping in your bedroom.” “Agriculture is a way to make your money work for you.” These are lies of the 21st But do you know these “lies” can be made as real as your finger prints? Are you surprised? Knowledge has pushed a lot of farmers’ and investors into bushes and profits. Let’s have all the cards on the table here.
Either you come down to the workers’ level in the farming process or make someone work it out for you. You don’t want to spend long hours monitoring farm labourers’ in the hot sun, do you? You don’t want to sleep overnight in your farm to have mosquitoes feed on you. But, how do you know when the seed drills are correct? Are you aware of the most appropriate planting seasons? Do you know the exact favorable conditions for maximal growth? Did the “farm manager” idea just pop into your mind? Do you think they will manage your farm like it’s theirs? How do you even know/ get an experienced, seasoned farm manager? Do you know that it requires efficient technical know-how to execute all machinery operations on farmland? From purchase of tractor to other farm implements like harrow, and plough. How about planters and harvesters? How then do you know the best type of tractor to buy? And other farm implements to be coupled to it? How do you optimize input for maximum output at the best affordable price available? You need an experienced machine operator for the farm machinery or in the least seasoned individuals attuned to the agricultural terrain you plan to take. What is the best way out? Look for experts who will manage your farm, perfectly. Have an expert tend your farm while you go on vacation in Miami or Paris.
- Get Rich Quick Syndrome: Yes, in the next 3 months, my capital must multiply by 200%, the 50 acres of land must have yielded 1,325 tonnes after harvest and my farm must bring returns on inputs. The inputs must be 20% while the outputs are 80%, wait a bit, can you be more realistic?
Most contract-farmers are after how much they can gain from you, there are only a selective few that would help manage inputs to more outputs, mostly, their pitch is definitely to appeal to your ears, only.
Investments in agriculture with focus on returns, only is a pathway to losses, agriculture is and would never be a means to an end. Ever wondered why some farms just hit the roof in no time and disappear into thin air before you say Jack Robinson? You get into this ever lucrative venture with only the profits and yields in mind, or probably because testimonials, statistical projections google supplied or even business account sheets of blossoming Agricultural firms and you think, you’ve got the money yielding tree with no tending operations required, then you have got it all wrong from the get go.
With the end in mind, the process ought to be considered. We have the pre-planting, planting and post-planting operations to think about. How do we input farm labour, operate machinery and do overall management to a profitable level? These are to be put in place before we talk about profits or return on investments.
At Hastom Nigeria, agriculture is not just a profession but a lifestyle, an age-long culture we are rightly positioned to revive, resuscitate and stabilize as a development tool to the nation and world’s economy at large through provision of arable farmlands to all, making improved crop varieties and animal breeds readily available, providing investment opportunities with unbeatable ROI and most importantly, propagating the gospel of absentee farming. We take the management worries off you and make you a proud farmer, your busy profession or distant geographical locations notwithstanding. Also, maximizing every bit of the cashew value chain is our forte with over a thousand acres of continuous cashew cultivation, and almost an equivalent farmland belonging to and managed for various clients across national borders. We have got an impeccable record of top management practices by well trained personnel providing both administrative and on-site support.
Conclusively, here’s the candid advice you might want to consider. Before you watch your hard earned resources plummet right before your eyes and you go about cussing this cherished profession, you might need to check if your motives are right in the first place, acquire the requisite knowledge and seek the help of seasoned professionals to help make judicious use of your “abundant” resources.
Let your Agro-business have the adept touch of Hastom, today and you will be glad you did.
For further inquiries, kindly reach us via any of the media provided below.
Hastom Green city is located at Baba Eko Village, Oriire Local Government Area, Ògbómòsó, Oyo State, Nigeria.
[email protected] +2348163013001, +2348123235949, and +2349021338277.