Subsistence farming

Portia Phahlane

09 October 2017

Farming remains a principal means of achieving some level of food security and sustenance, for many rural families. 2011 census results show that 2.9 million households in South Africa are involved in agriculture - mainly in subsistence and small-holder farming. Subsistence farmers produce primarily for household consumption, and very little, if anything for the market, while smallholder farmers produce both for own use and the market.

Despite South Africa being declared a food-secure nation, the majority of poor households in South Africa are still food insecure. While subsistence farming is important for food security; household food insecurity remains a threat to individual households, as productivity in this sub-sector is very low - mainly due to poor access to resources and the necessary inputs, and the lack of access to available technologies. The need is to improve productivity drastically to make a meaningful impact on medium and long-term food security.

To improve household food security, subsistence farmers should be convinced and directed to follow sustainable strengthening of production through applying improved inputs and new technologies, including raising knowledge about the markets they want to enter. To boost the confidence and productivity of subsistence farmers, they should be afforded the opportunity to interact with strategic actors such as buyers, service providers, and policy-makers. Added to this are opportunities where they can express and communicate their situation, problems, and potentials - hopefully translating into a positive impact on yields and subsistence production - developing and assisting them to change to become part of the economic development of our country.

The Fourth Industrial Revolution and Agriculture in Africa.

John Lapham

25 July 2017

To gain perspective of the fourth industrial revolution, it is necessary to go back about 250 years to the start of what we generally term as "industrialisation". The first industrial revolution (1750 to 1830) enhanced the speed and capacity of transportation by the invention of the steam engine and railroads. The second revolution improved the lives of the average person with the invention of electricity, running water, indoor toilets, combustion engines, communications and entertainment (1870 to 1900). From 1960 to the present computers, the internet and mobile phones, through what we call the third industrial (or digital) revolution, improved productivity and contributed to economic growth.

However, the second industrial revolution was the most important and was responsible for 80 years of economic growth unprecedented in human history; it was only when the spin-off benefits of these inventions had run their course that this ended in about 1972. In contrast, the benefits of the third revolution were relatively short-lived with a growth revival from 1996 to 2004.

The hopes and prospects for future growth now vest in the fourth industrial revolution. It is a technological revolution that will alter the way people live, work and relate to one another. It presents a new range of technologies that combine the physical, digital and biological worlds.

What does this mean for Africa and its agriculture? In Africa, about 70% of people live in rural areas depend on agriculture for their livelihoods. The previous industrial revolutions passed many of them by, and some are still without electricity, running water and other amenities. Despite this, many have benefited, and continue to benefit, from the advent of information and communication technology in the form of mobile phones. Fifteen years ago, 10% of the population had cell phones whereas today phones are as much used in South Africa and Nigeria as they are in the United States. The use of ICT is no more apparent than in the mushrooming use of mobile money services, where Africa leads the way - 150+ million registered users represent more than 50% of all users globally.

This means that Africa is well set in many ways to benefit from participation in the fourth industrial revolution. These new technology platforms, rendered easy to use by the smartphone, lower barriers for businesses and individuals, to create wealth. This is particularly relevant to small-scale agricultural producers and service providers.

The possibilities are unlimited when millions of people are connected by mobile devices providing processing power, storage capacity and access to knowledge. For example, linking producers, input suppliers, service providers and markets along the value chains, can only enhance efficiencies and productivity. Small-scale producers can easily communicate, pool their supply and dictate trading terms, changing a business model that has for several decades disempowered them.

Africa can not only reap the benefits of the fourth industrial revolution in agriculture, but technologies can be used on a macro-scale to stimulate growth in sectors previously bypassed - placing Africa at an advantage over establish economies where there is little or no room for further growth.

References:

• K. Schwab, 2016. "The Fourth Industrial Revolution: What it means, how to respond." World Economic Forum, Chairman. Foreign Affairs Magazine.
• R.J. Gordon, 2012. "Is US Economic Growth Over? Faltering Innovation Confronts the Six Headwinds". Working Paper 18315, National Bureau of Economic Research.

The Race Towards the 4th Industrial Revolution in the Agricultural Sector

Portia Phahlane

10 July 2017

Globally, the agricultural sector faces the ongoing challenge of supplying nutritious food on a sustainable basis to a population that is expected to rise to 8.5 billion by 2030. The situation will compel the sector to utilise every opportunity and pursue every avenue of action to rise to this enormous challenge including the technological advances brought on by the Fourth Industrial Revolution - a revolution that has the potential of raising the global income and improving the quality of life for populations, including the farmers of this world.

The fourth industrial revolution is and will be about extreme automation and connectivity as it builds on the third - the digital revolution. Klaus Schwab, the founder and the chairperson of the World Economic Forum, has said that "the fourth industrial revolution is already upon us and technology will be the driving force for this new age". This revolution will provide the world with a range of new technologies that combine the physical, digital and biological worlds. These new technologies will impact all disciplines, economies and industries.

Indeed, the race for digital transformation has been taking place at remarkable levels. From the third revolution, the agricultural sector has seen technologies such as precision farming, irrigation techniques mobile technologies. Technologies have become tools that assist and enhance our way of doing things. To meet the food challenge, these tools are needed - not only in boosting productivity but also helping to reduce food loss and wastage in the whole agricultural value chain.

Mobile technologies, on the other hand, have also opened many opportunities that previously were never thought to be possible. These possibilities include the broadening of farmers' understanding of the land they are farming on, which crops to plant, the markets they are selling to, improved access to weather and other climate risks, and the ability to make more informed decisions.

In this regard, agricultural information systems like AgriSuite Online provide platforms to farmers help them improve productivity while providing farmers with real-time information on all aspects of farming. AgriSuite, for one, provides up-to-date weather information as well as forecasts, plant and animal production information, markets and geo-referenced infrastructure information.

The Fourth Industrial Revolution holds great promise, and opportunity and agriculture and all its role-players and stakeholders must be prepared to embrace changes brought by this revolution. There will be challenges, like the necessity to re-skill the labour force as the new industrial revolution forces innovation and new technologies. A collective goal to harness all the elements of the revolution to build an even stronger foundation for sustainability is required to combat the food challenge. The actions taken to enhance the sustainability of the food supply chain must also guarantee better food security and access to nutritious food for all.

"To improve is to change, so to be perfect is to have changed often" - Winston Churchill

Honeybee pollination, an important role in Agrobiodiversity

Colleen Janse van Rensburg

15 May 2017

Modern farming methods are a far cry from traditional farming methods - methods that we know harmed the environment in many ways. The loss of biodiversity due to unsustainable farming practices has lead to a reduced ability of the ecosystem in the provision of goods and services. Ecosystems provide benefits like food and shelter and talk on biodiversity centres mainly around boosting ecosystem productivity.

Apart from providing food, agriculture is also an important source of livelihood for many people, where the focus is on increasing maximum output - often to the detriment of the environment. Expansion and intensification of agricultural production systems have led to decreased natural habitats and ecosystems, threatening biodiversity.

For biodiversity, to be relevant to people throughout the world, it needs to include agriculture - "agriculture biodiversity" (agrobiodiversity), a significant subset of biodiversity, is what sustains agriculture. It is the management of the interactions between crops and domestic animals and their associated biodiversity and the environment.

Agrobiodiversity is often understood as comprising simply crop and animal diversity, however, it includes all living things that play a role in sustaining agriculture. As the population continues to expand there is need to provide food in more sustainable ways. A renewed look at traditional farming methods and providing stable ecosystem services has gained attention in recent years, and one such ecosystem service is pollination services.

Pollinators contribute approximately one-third of the food that humans consume. About 85 % of all pollination is by insects of which honeybees make up 80 %. Both nectar-gathering and pollen-gathering honeybees are important for pollination. Introducing commercial honeybees for pollination in deciduous fruit species improves fruit set, weight and quality. In South Africa, using honeybees in paid pollination increases the value added to crops, of which almost R3 billion per annum is from deciduous fruit crops alone. Other crops pollinated by honeybees are subtropical fruit crops, oilseeds crops, seed crops, berries, nuts and vegetables.

Unfortunately, many factors have contributed to the decline in bee numbers over the years. Colony collapse disorder is the result of stress from pests and diseases, pollution, insufficient nutrients and overworking of bees. Use of pesticides as well as theft and vandalism of hives is a further threat.

Bees cannot be imported from other countries. Their free movement in South Africa is hampered by the Capensis problem - when Cape bees invade the hives of African bees, further adding to the importance of highlighting the value of bees to the food industry and the need to ensure their continued safety.

Honeybees can be used as vehicles of empowerment and rural development in South Africa and there is great entrepreneurial development and economic empowerment potential for small-scale beekeepers. Pollination is either paid for by the farmer, or rendered free of charge by beekeepers introducing their bees to collect a honey crop. While many large beekeepers produce bulk honey, smaller beekeepers can diversify and produce honey as well as offer pollination services.

Collaboration and partnerships between agricultural companies, the government and local communities, is needed to promote and develop small-scale beekeepers and to further research the benefits of honeybee pollination and its role in Agrobiodiversity.

References:

1. GEMMIL-HERREN, B. (editor), (2016). Pollination Services to Agriculture: Sustaining and Enhancing a Key Ecosystem Service. Food and Agriculture Organization of the United Nations (FAO).
2. ALLSOPP, M., (2012). A healthy honeybee population is critical to the South African seed industry, ARC- Plant Protection Research Institute.
3. ALLSOPP, M., (2005). Commercial Pollination of Deciduous Fruit, Syngenta, DFPT Research, ARC.
4. GEMMIL, B., KINUTHIA, W. & EARDLEY, C., (2001), Overview of Pollination in Agrobiodiversity Planning: Principles and Best Practices, https://www.cbd.int/doc/nbsap/agriculture/pollination.pdf

Risk Management - Small-Scale Farmers

Dr John Lapham

24 April 2017

Many small-scale farmers inherently adopt a "low-input, low-return, risk avoidance strategy" to farming, particularly when growing crops. Crops are at the mercy of environmental extremes such as droughts, floods and outbreak of pests and disease. Small-scale farmers fear the potential losses from these threats when investing in crop seed, chemicals and equipment, and consequently, their approach is to limit crop inputs with the only expectation or hope, to harvest enough to subsist so that it will only be in extreme conditions that they unable feed themselves.

However, this strategy is a trap for them - they may be able to sustain this approach - but only at a subsistence level. When the plan fails, they must rely on outside support (state assistance).

Circumstances are changing, and there is a new impetus from the private sector who are more aware of the agricultural needs and its potential - prominent African business leaders are imposing a clearer vision. New models aim to ensure a more equitable distribution of returns, more price stability in the market, better coordination between farmers and eventually more affordable and easier access to finance. An integral part of financing crop production should be providing crop insurance, currently being addressed in many instances.

South Africa has over 450 000 emerging and small-scale farmers and close to 40 000 large commercial farmers.

While the latter has traditionally enjoyed access to advanced financial solutions and insurance, emerging farmers find themselves financially exposed when faced with adversities and often tend to borrow more, or leave agriculture permanently. Still dependent on rain cycles, South Africa's small-scale farmers are the most financially vulnerable to the vagaries of weather. The prolonged drought conditions the country is witnessing, the worst in over a century, have only seen small farmers, reap more debt.

This situation is mainly because many small farmers do not have access to, or adequate knowledge of, risk management actions that can carry them through unforeseen events like the current drought.

The Land Bank Insurance Company, LBIC, a division of the Land Bank, is developing crop insurance products for small-scale farmers. Part of the programme is to train brokers to operate in the rural areas and engage the farmers.

"We strongly believe there is room to develop black brokers who can reach out to the small farmers in the deep rural areas of the country, where established brokers might see little or no market," said Mr Nondumo, the Sales and Distribution Executive Manager. He added that the LBIC recognised this need among customers, which is in line with the company's mandate to support the development of the agriculture sector.

He noted that losses in this sector were primarily a result of adverse weather conditions and that the degree of severity of such events had only increased following erratic weather patterns. These patterns not only exposed farmers to crippling financial losses but also degraded the quality of their soil.

"Smaller, uninsured black farmers are left with no choice but to approach the banks for further credit - but credit is not necessarily a tool to deal with weather events, - insurance is. It is a critical part of ensuring the long-term stability of the farmer," said Nondumo.

Inability to service debts can easily exclude farmers from the formal banking system, pushing them into the dangerous area of informal credit.

"So, insurance as a risk mitigation tool is as vital for the farmers as it is for the banks," said Nondumo.

Risk management in farming

Portia Phahlane

10 April 2017

Producing food is a business like any other, and like other businesses subjected to risk, and for owners and food producers to be successful, they need to manage a variety of risks continuously present where they operate.

Agriculture, of course, has added burdens - farming business failure affect owners and workers directly, while it indirectly threatens food security, job security in the rural areas where worker options are limited, and it impacts negatively on small producers in their battle against poverty.

Risks are characterised by their rate of occurrence (possibility), and their intensity (scale). Natural risks affect agriculture - drastic changes in the weather, natural disasters, market price fluctuations and pest and disease outbreaks can cause havoc, while sudden increases in interest rates can be devastating for debt-ridden food producers. Changes in local, provincial and national government policies, especially law and regulation changes at crucial times during production. Other risks include those related to the health and well-being of the farmer and his family and the supply of labour for the farm.

In formulating and implementing effective risk management strategies, farmers need to understand the nature of the risk and have the necessary risk management skills, or at least access to those who do and are prepared to share it.

Successful risk management and decisions depend wholly on accurate information from reliable sources. Included in these are farm records, off-farm statistics, information from input suppliers, extension workers, other farmers, environmental data and commodity market price data.

Simple steps in managing risk include:

• The identification of possible sources of risk;
• Awareness of the possible results from specific risks;
• Knowledge about alternative strategies available;
• Assessment of the consequences and results of each possible outcome for each strategy;
• Evaluate trade-offs between the cost of the risk and the potential gains;

In the end, decisions have outcomes or consequences that can be either be good or bad, depending on preparation and options taken. Farmers make decisions all the time - what to plant, what inputs to buy, and where to buy. On the other hand, yields and future market prices - the crux of the whole farming business remain unknown to the very end. Dealing with known risks more efficiently lays the foundation for better farming opportunities.

Conserving water on the farm

Colleen Janse van Rensburg

22 March 2017

Water availability, a most important issue in South Africa for most of its recent history, is back in the limelight, mostly due to experiencing one of our worst droughts in decades during the past year. Recent rains in the summer rainfall regions have brought welcome relief, and dam levels have improved drastically. However, in the winter rainfall areas, strict water restrictions are in force - with total dam capacities estimated to be around 30% of capacity.

Comparing our average annual rainfall of 450 mm to the global average of 860 mm, it is no surprise that South Africa is described as a semi-arid country, with droughts the norm, rather than the exception. Although droughts that occur due to the El Nino effects are more severe and noticeable, periodic dry seasons are experienced every year from April to September in summer rainfall regions and October to March in winter rainfall regions. The far west of South Africa is an arid region that is dependent on isolated thunderstorms for rain.

Agriculture is the biggest consumer of water in our country, almost 60%, and while many own farms their water supplies, they are certainly not exempt from conserving water. Despite this, with a growing population, the demand for water is increasing, and since most of the growth occurs in urban areas, the availability of water will be prioritised in the cities, leaving less for agriculture.

Although much of the 60% of water used for agriculture is for irrigation purposes, livestock farmers understand how much water animals consume daily. As farmers, cannot afford to save water by limiting the amount provided to animals to drink, they can conserve water through:

• Fixing leaks - leaking pipes or dripping taps contribute to significant daily farm-water losses;
• Installing floats with a shut-off - prevents overflowing of water troughs;
• Restricting animal access into water troughs or farm dams - animals contaminate water making it undrinkable, and wasted;
• Culling unproductive animals - unproductive animals use up valuable feeds and water;
• Farming with indigenous/adapted breeds - larger exotic breeds require more inputs, e.g. cooler systems. They also require additional feeds often sourced from irrigated pastures or croplands; and
• Managing the veld - overgrazing leads to desertification and higher amounts of soil-runoffs.

In the past, producers focused on high productivity which saw the intensification of many livestock systems using larger more improved imported animal breeds. There was little regard for the environment but over the years the focus has shifted to farming more sustainably. Based on current water usage it is estimated that by 2025 water demand will exceed availability of usable fresh water resources. Farmers will thus need to find ways to conserve water and change farming systems to be more sustainable.

Resources:

• Overview of the SA Water Sector - DWA , Chapter 1 CLick here for PDF.
• Western cape dam levels https://www.westerncape.gov.za...
• https://theconversation.com...

Future Challenges to African Food Production

Dr John Lapham

27 February 2017

It is estimated that the global population will increase from its current level of 7.3 billion to people to 9.7 billion by 2050, an increase of 2.4 billion or 33%. Most of this increase, 1.3 billion people, will occur in Africa.

Another way of looking at this is that the world's population, excluding Africa, will increase by only 18% by 2050, while in Africa's population will double.

At least 65% of Africa's population is involved in agriculture in some way, and it will be critical to improve productivity not only to feed the population but also to drive economic development - i.e. addressing the hurdles faced by small-scale farmers who are the producers of over 80% of the food on the continent.

Small-scale farmers inherently adopt "low-input, low-return" farming because it is a less risky strategy; only in extreme conditions are they unable feed themselves. However, most often they only manage to subsist; in other words, they are trapped in a system that can be sustained but only at a subsistence level.

The means for improving production are evident. For decades, various technological improvement programmes have been promoted - improved varieties, fertilisers, irrigation systems, low-cost, sustainable organic solutions, and more - all with very limited success. However, all these require additional financing which small-scale farmers cannot afford and do their best to avoid with their "low-input, low-return, risk-avoidance strategy". The alternative is subsidies and assistance which helps, but at the same time generate a network of administrative and rent-seeking problems; it has been estimated that only 11% of subsidised fertiliser reaches the target farmers in Nigeria.

However, circumstances are changing in Africa, and there is a new impetus from the private sector who are more aware of the agricultural needs and potential; a clearer vision is being imposed by prominent African business leaders on development strategies. More emphasis is being placed on implementing business models which empower small-scale farmers throughout the value chain but particularly in the marketplace. These models are aimed at ensuring a more equitable distribution of returns, more price stability in the market, better coordination between farmers and eventually more affordable and easier access to finance.

For small-scale farmers, this reduces the risk that they so intensely avoid with their "low-input, low-return" strategy.

• For example, price stability in the marketplace is being improved by warehousing grains. A minimum price is guaranteed (underwritten by the government), and the facility is managed by the private sector; the result is small-scale farmers can sell when they need the money and obtain the guaranteed price. Their returns are predictable, planning is improved, banks have more confidence in their financial projections, and are willing to lend at affordable rates.
• Price stability is also achieved with clusters of fresh produce growers having access to processors, who require consistent and regular supply and are willing to pay constant prices. The producers win by avoiding intermediaries as transactions are a direct exchange between the producer and the market.
• EcoFarmer (Zimbabwe), has partnered with maize seed suppliers to offer crop insurance at a rate of a few dollars per hectare when seed is bought. With insurance, farmers are more inclined to purchase the seed because any crop failure, through drought or flood, is compensated.

These are some of the measures aimed at enabling small-scale farmers an escape from the "low-return, low-income" subsistence system in which they are trapped. They all form part of the overall agri-business development models being promoted by private sector leaders in cooperation with the public sector in many countries within Africa.

However, as is the case in any situation, some farmers will embrace the opportunity and succeed, and some, unfortunately, will not.

Future challenges faced by the livestock industry

Colleen Janse van Rensburg

13 February 2017

Agricultural land in South Africa is primarily livestock-based as about 70 % of it can be utilised only by livestock or game species, making livestock-farming the largest agricultural sector in the country. Livestock makes a significant contribution to GDP and trade in South Africa, adding substantially to food security, the clothing industry.

While the livestock sector is growing, livestock farmers are up to the challenge to produce livestock sustainably towards 2050 when the world's population is expected to increase to over 9 billion, and the associated increase in demand for livestock products.

However, it is not just a matter of increasing livestock numbers, but due to several factors including environmental concerns, farmers will need to adapt from maximum production approaches to focussing on quality and producing efficiency.

The South African livestock industry is constantly under pressure due to environmental effects like seasonal rain and periodic water shortages. Changes in seasonal disease outbreaks and rainfall and vegetation patterns all have an impact and force farmers to adapt and change their farming practices to current conditions. Stock theft and predation are other major concerns facing the livestock farmer.

Adding to these pressures are the frequently raised public concerns over animal welfare and the effects livestock have on human health and the environment, as well as external factors including labour unrest in several sectors, political influences, trade and investment effects and changes in laws and legislation.

A large percentage of livestock belong to small-scale farmers that rely on their animals mainly as a source to feed their families, for traction and transport, fulfilling a cultural role, and finally to sell and generate income.

Many of these farmers do not have access to accurate and reliable information and without access to formal communication networks; they are not aware of any new technologies or other information to help them improve productivity.

The government and livestock industries have an important role to play in reaching these small-scale farmers and provide them with reliable, current production and market information. Improving infrastructure and training on the farm will capacitate farmers to make more informed choices and adjust their practices to improve grazing and herd health management and increase reproduction and growth rates. Access to markets and information on market trends and demands will help farmers enter the market and add a valuable contribution which can also contribute to developing them further.

Assisting small-scale farmers to produce efficiently and in a sustainable manner will improve food security and further strengthen the livestock sector over the years to come.

The future role of youth in food security

Portia Phahlane

06 February 2017

FACT: The farming population in South Africa is ageing, and rapidly so. This unsettling development on the demographic of our farming population puts a considerable amount of pressure on the agricultural sector and on the country's status as a net food producer. According to AgriSA, the average age of South African commercial farmers is 62. That in itself is not a problem but the industry is struggling to attract enough young talent from the next generation to fill this potential void in the battle for food security in our country.

According to AgriSA, South Africa had 128 000 commercial farmers during the 1980s - a number that has steadily shrunk to an estimated 30 000 in 2014 (latest available statistics). This declining figure poses a potentially worrisome situation - how to feed and continue to feed a population of over 50 million, and growing.

To solve the problem of future food insecurity, small producers and emerging farmers must be brought into the fold to contribute to the annual total food production in South Africa and even sub-Saharan Africa. It is amongst small producers and emerging farmers that the figures are looking even worse. Although statistics on the average age amongst "non-commercial" producers is not available, it is no secret that the rural population, despite high growth rates, is shrinking due to urbanisation and other factors. It is amongst these rural young people that we need to stimulate an interest in agriculture. Unfortunately, there are negative perceptions about farming amongst them, and especially the rural youth, as they have personal experience of rural poverty and the struggle to survive on farms. Their view of agriculture as being the poor man's burden (poverty and low social status), needs to be addressed and corrected.

The national and provincial governments, in conjunction with the commercial farming industry, have been trying for years to resolve the issue, but for many reasons, have not been able to agree on even the basics of a workable solution. The fact remains that we desperately need to find ways to engage and attract young people to the fact that they can be successful in the sector.

Farming is no longer the domain of the so-called uneducated peasant farmer. The social status of a successful food producer ranks equal to that of any other professional, and rural youth should be made to be aware, believe and practice this - and to reach the goal of being commercial food producers.

In all these efforts, technology plays a pivotal role, and the application and exploration of it will lead to harnessing maximum benefits at lower overall costs while working towards a better future for all.

Young people apply technology daily, and using available technologies will certainly not be a challenge to tech-savvy young farmers. Tech-tools like AgriSuite Online made available to them can help them make agriculture a profitable venture - something that the sector needs to drive its mission - "to ensure food security for all" - forward.

Ageing farmers and the youth's negative perception of farming pose a real threat to food security in the country, as well as the future role of agriculture in our economic growth and economic survival. The situation needs the attention of all role-players.

Investing in Crop Production

Thembeka Zengele

16 January 2017

According to the World Bank investing in agriculture is one of the most important and effective strategies for economic growth and reducing hunger in rural areas where the majority of the world's poor live. After all, whether an economy is in recession or booming, people still have to eat. It is for this reason that many investors regard agricultural enterprises as being "recession-proof".

One potential investment opportunity is in crop production - planting, growing and harvesting crops. Investors may also engage in supporting activities such as distribution, processing and packaging. However, like any other investment opportunity, there are four main phases that investors may go through before making the final decision to act on investing in crop production. These include: Getting their Attention; Retaining their Interest; Capturing their Desire; and Ensuring that Action is taken. Detailed information for each phase is available on AgriSuite Online. These phases are further discussed below as follows:

Getting their Attention: Prospective investors must be presented with general and brief information in a simple but attractive format to capture their initial attention. This information includes short and precise descriptions of the crop of interest, climatic needs and constraints for the venture, a production calendar, possible markets, and advantages of the venture. Retaining their Interest: Once the initial attention of the investors has been secured, they must be presented with more detailed information in the form of a preliminary feasibility analysis study. This ensures that their decisions are well-based and feasible:

• Identify and select the potential production location;
• Obtain all relevant data namely: seasonal rainfall; water resources for irrigation; temperatures; market information; labour and management available; power sources etc.;
• Select suitable crops for the prevailing regional conditions;
• Investigate technical production details and their costs to establish if the venture is fundamentally feasible.

Capturing their Desire:

Compile a general or generic budget analysis to provide useful insight into the viability of the venture for investors at this level of interest. Other information that is required in this phase includes:

• Planning of operations i.e. production calendars to provide information on when and what activities are needed to be done - and enables financial projections of costs going into the future
• Capital requirements, costs and availability (resources needed)
• Potential yields
• Market prices and contracts

Ensuring Action is taken:

Information generated from the previous phases is then used to present the financial projection of costs going into the future and to establish an implementation plan that ensures action is taken should a decision be made to invest. This is often in the form of a business plan which can be used to borrow money.