week 3

Question 1

succes factors of small scale farming

Answer 1

-diversified crops, incomes
-A biologically intensive approach. (high productivity on small land)
-Minimizing start-up costs.
(Low-tech, second-hand equipment. Rented land.
Avoid mechanization and machinery-related costs.
Maximizing production costs.)
-Do not depend on outside labour. Watch the costs of your inputs.
-Direct selling.
CSA, farmer’s markets, solidarity markets, and farmgate sales.
-Adding value to the crops.
Freshness, profitability, brand-image.
-season extension techniques

Question 2

why do we do a business plan (rational behind it)

Answer 2

-Time and money are scarce resources.
-Research is needed to generate accurate information of the economic viability of a farm.
-Many small businesses fail
Small-scale farming is much more difficult to succeed financially than most other small businesses.
-Agriculture is capital intensive: higher risks of loss without thorough planning.
-strategic decisions increases the chances of success and minimizes risks of financial losses.
-Business planning might change your mind about entering farming: delaying the start or altering the business concept.