Transforming agribusinesses into generational enterprises

21 July 2021 | Agriculture

Windhoek • Hanks Saisai
Building a sustainable and reputable farming business is a journey that requires commitment, dedication, and hard work from a farmer and all teams on the farm.
On average, it takes between 10 and 20 years for one to build a highly profitable farming enterprise. However, one of the critical concerns that most successful farmers face is a succession plan that will see the well-established agribusiness venture passed on to the next generation. Overall, most commercial farmers have succession plans for their farming businesses, and this is no exception in Namibia.
The average age of a farmer in Namibia is 62 and with agriculture being one of the main contributors to the country’s GDP, it is important for those running these crucial farming ventures, to ensure that such farming enterprises continue in the unfortunate case of death, or when they decide to retire. Therefore, to transform an agribusiness into a generational enterprise, an instrumental tool that farmers can institute is a succession plan.
By definition, a succession plan is the process of identifying and developing new leaders who can replace old leaders when they leave, retire, or pass on. This is equally applicable in the case of a farming business, for a farmer to identify from onset, potential persons that can one day carry on the management and leadership of the farm to ensure continuity of business on the farm.
Over the years, commercial farmers have utilized this tool very effectively, and this has helped them sustain their businesses for many generations. Farmers with well established businesses such as Stud livestock producers, crop farmers, and even some communal farmers that are renowned in the industry can transform their agribusinesses into generational business ventures by immediately involving their children from a tender age. This allows the next generation to understand how the farm operates, makes its income and its crucial assets of production. By the time the farmer retires or in the unfortunate case of death, the immediate children can take over the farming business and continue its operation until they also pass it on to their children and then later to their grandchildren as well.
In conclusion, succession planning has proven to be a key strategy that has seen many families with farming businesses enjoy sustainable incomes that have enabled them to sustain livelihoods for many generations. Therefore, it is recommended that farmers should identify those passionate to pursue farming as a business among their children and teach them all pertinent aspects of managing a farm as a business. Moreover, an easy way to encourage young people to be involved in farming is by availing information such as financial statements (auction receipts, sales statements, etc.) that will show them that indeed farming is a business that can sustain generations.
*Hanks Saisai is a Technical Advisor in Agribank’s Agri Advisory Services Division.


CAPTION: It is important for those running farming ventures to ensure that these enterprises continue. Photo businesswire.com

Similar News

 

Omaheke remains cattle capital

1 day - 01 August 2021 | Agriculture

Omaheke governor Pijoo Nganate said the region continues to be the champion in beef production, with emphasis on breeds that capitalise on maximum output of...

The basics of livestock breeding

2 weeks ago - 16 July 2021 | Agriculture

Windhoek • Erastus NgarukaNamibia is predominantly a meat (cattle, sheep, goat) producing country, and many farmers are working hard to improve the genetics and performance...

Basic considerations on livestock handling

4 weeks ago - 05 July 2021 | Agriculture

Windhoek • Erastus NgarukaHandling livestock is always a risky exercise that can culminate into significant livestock injuries and deaths on farms because of improper livestock...

Crop diseases and their control measures

1 month - 29 June 2021 | Agriculture

Windhoek • Hanks SaisaiCrop production has been carried out since time immemorial and mainly involves the tilling or cultivating of the soil to sow seeds...

Boost for city’s urban garden

1 month - 27 June 2021 | Agriculture

The City of Windhoek (CoW) secured N$1.92 million from the United Nations Development Programme (UNDP) to develop and boost agricultural food production of Farm Okukuna,...

Learn the ins and outs of agriculture online

1 month - 27 June 2021 | Agriculture

Agribank launched a two-season podcasting service that covers eight episodes each. The podcasts are hosted by Ndeshihafela Shinedima (aka Reina Nelao), Agribank’s brand ambassador for...

Understanding grasses

1 month - 25 June 2021 | Agriculture

Windhoek • Erastus NgarukaIn Namibia, livestock production is heavily dependent on the rangeland, which grows a variety of forage resources including trees, shrubs, grasses, and...

Phase feeding in chicken production

1 month - 24 June 2021 | Agriculture

Windhoek • Hanks SaisaiChicken production is a lucrative enterprise that offers a competitive income for farmers that specialize in meat or egg production. However, to...

Charcoal activities unleash large-scale bush fires

1 month - 17 June 2021 | Agriculture

Windhoek • [email protected] bush fires allegedly sparked by charcoal burning operations have razed around 35 000 hectares of grassland to the ground across seven farms...

Second Online Agriculture Series on the cards

1 month - 16 June 2021 | Agriculture

Bank Windhoek hosts its second Online Agriculture Series on Wednesday and Thursday (23 & 24 June) themed “Innovation and Trends that will shape the future...

Latest News

ICU bed occupancy reduced by...

8 hours ago | Health

Health minister Kalumbi Shangula said the hospital bed occupancy rate, especially in intensive care units, has significantly improved in most of the regions, following a...

Why appointing a proxy and...

10 hours ago | Opinion

Windhoek • Taswald JulyMost of us have probably faced death and thought about our own mortality more often, and however daunting the prospect may be,...

Ways to renovate without losing...

10 hours ago | Life Style

For many, the history of a home is what makes it appealing.However, as charming as antique archways and brass finishes might be, rusty pipes and...

Lead by example

10 hours ago | Opinion

Windhoek • Ester KaliDuring these trying times, it is important to approach every situation with as much grace, kindness, faith and empathy as possible. Today,...

Book your cancer screening now

10 hours ago | Health

The Cancer Association of Namibia hosts the next Women's Health Community Clinic in Windhoek on Thursday (5 August 2021), when screenings are carried out for...

The perfect San storm

11 hours ago | Social Issues

The year 2021 has not brought any respite to Namibia from the tragedy and hardship that befell the nation through the Covid-19 pandemic. In fact,...

Segura spog met nuwe winkel

12 hours ago | Business

Windhoek • [email protected] Emporium het begin as ’n aanlynwinkel, maar spog nou met ’n splinternuwe instap winkel inKlein Windhoek.Volgens eienaar Marilie van Schalkwyk, wil sy...

Omaheke remains cattle capital

1 day - 01 August 2021 | Agriculture

Omaheke governor Pijoo Nganate said the region continues to be the champion in beef production, with emphasis on breeds that capitalise on maximum output of...

Supreme Court to review 50-year...

3 days ago - 30 July 2021 | Justice

Windhoek • [email protected] man serving a 50-year prison sentence for the panga murders of a Russian couple 13-years ago has been granted leave to appeal...

Load More