FARM MANAGEMENT

Farm Management

 Dramatic changes are taking place in farming worldwide as a result of globalisation, liberalisation, and rapid urbanisation. Farmers are intensifying existing patterns of production and diversifying their farm enterprises in an attempt to improve their livelihoods. Technical know-how is not enough. In order to be competitive and take advantage of the new opportunities that are arising farmers increasingly have to adapt their farm business to market changes and improve efficiency, profitability and income.

  The desire to increase income by taking advantage of market opportunities requires farmers to become better decision makers and better at competing in this new environment. The emphasis on the market and the need of farmers to be competitive , calls for better farm management skills .

Marketing and farm management have rapidly gained predominance globally over the last two decades. Farm business management skills and knowledge is recognised as important for farmers to effectively respond to present day farming challenges. Farm management advice helps farmers to make the right choice between crop enterprises according to individual levels of financial, labour and land endowments and at their level of risk adversity. As farmers become more market-oriented, extension needs are changing and extension workers and farmers face new challenges in providing appropriate advice.

  As a response to these changes, the service has been involved in providing strategic guidance to policy makers and programme managers in farm management extension, developing training approaches and materials for improving farm management skills of extension workers and farmers and provide guidance to policy makers and extension workers on farm data collection, analysis and dissemination. Close internal partnership is also maintained with other services in the Rural Infrastructure and Agro Industries Division, as well as with other divisions and services in FAO.

Farm Business School : New vision for improved livelihoods

With the enhancement of liberalisation increasingly small scale farmers have to adapt their farm business to rapid market changes. Small scale farms have to become better managers, be more competitive and improve their efficiency and profitability. Given this context one methodology envisioned by the service is to build farmer capacity in entrepreneurial and management skills, via a "learning by doing" approach.

The Farmer Business School concept enables, at village level, farmers to learn and improve their knowledge, change their attitudes and enhance their skills toward improved farm commercialisation. Extension officers and lead farmers are facilitators and organise seasonal training courses, where farmers work in small groups at their own agreed time and duration. The service is currently involved in developing a Farm Business School curriculum composed of a set of guidance and training materials.

Harmonisation between farm management and agribusiness

Changes in technology, urbanization, distribution and consumer demand for higher quality and safer agro food products have impinged on traditional production and distribution organisations new challenges. The agro food value chain now requires more planning and coordination, and in particular improved linkages between farmers, agribusinesses and retailers. The service has long recognised this necessity and fosters the harmonisation of agribusiness and farm management. Agribusiness managers, not only must posses the basic skills of finance, marketing and operations, but need to improve their skills in cooperation and relationships with farmers. Farmers also need to improve their management skills in an effort to create stronger and more durable linkages with agribusiness enterprises. The objective is to enhance and transform supply chains into harmonised integrated value chains. (Internet)

Penulis : Drs.Simon Arnold Julian Jacob