The Farm Financial Management for Agripreneurs Beyond Compliance report is imperative to ensure sustainable and profitable farm enterprises.
Agribusiness is long known to be a fundamental component of the Namibian economy.
The agribusiness sector involves the production, processing and distribution of agricultural products and services.
This involves the entire supply chain of producing the goods and services to the end consumer’s plate on the table.
Farming is what places food on your table every day; how could it not be important?
For the success of the agribusinesses, financial planning and control, as part of farm financial management, must be undertaken.
Financial planning is the first component that must take precedence before the implementation of a farming strategy.
As with any business, the financial planning function of management is one of the fundamental parts of managing a farm enterprise.
Financial planning and control involve, determining the current financial situation of the business (incomes, expenses, liabilities, loans and receivables), setting up financial goals, finding an alternative course of action, reviewing the alternatives, re-evaluation and revision the plan.
Agripreneurs must identify and set strategic financial goals and plan how these goals can be achieved accordingly.
Setting strategic financial goals is a vital function for agripreneurs, as it establishes a clear direction for the business and can be used as a yardstick against which performance is measured.
Additionally, it provides a framework that defines the plans and direction that guides the business.
The goals set must be specific, measurable, attainable, realistic and time-bound (SMART).
A forward-looking approach with intent has the potential to increase business profitability, rather than the mere historical financial reporting carried out for tax compliance, loan application and financial statements.
To achieve profitability for agripreneurs, the financial records must be summarised to ensure there is ongoing monitoring of business earnings, expenditure and production.
For agripreneurs to measure how efficiently the resources are being used, it is thus imperative that the returns (profit) earned are measured against the capital investment (equity), through financial planning and control.
‘Failing to plan is planning to fail’; thus, plan for the success of your farming business.
As reported in the New Era Newspaper: https://neweralive.na/os/posts/financial-planning-and-control-vital-for-farmers/