We see farmers as some old looking men and women in villages with bent backs who live in thatch roofed houses and are very poor. Are farmers really poor?A Farmer’s net worth is dependent on the amount of yields he has from his farms. The yields is dependent on the size of the far...
We see farmers as some old looking men and women in villages with bent backs who live in thatch roofed houses and are very poor. Are farmers really poor?
A Farmer’s net worth is dependent on the amount of yields he has from his farms. The yields is dependent on the size of the farm. Basically, the bigger your farm, the richer you are.
The following factors affect the income of a farmer
1. Market Prices
Every Agribusiness profit is more dependent on how much your produce is sold for. This selling price is most times not dependent on how much was spent on the farming.
Market Price
The price of commodities is dependent on the following
The period it’s being sold
The price of farm produce is dependent on the season. In dry season, Plant commodity prices increases due to low supply. While in raining season, Plant commodity prices fall due to high supply. This is where the wisdom of storage comes in. Try to store your produce and sell in seasons with high prices.
Poultry produce sells for good price during Festive periods, so as a poultry farmer, time when you keep your birds, so your harvest time fall during festive periods.
The buyer
Most times, direct consumers purchase at a higher rate, but they don’t buy in large quantity. While those who purchase in large quantity tend to reduce price. This is the case in both plant and animal produce.
The Location
Tomatoes for instance sells for a higher price in Lagos than in Jos where it is farmed. Get your produce to the places with high price and sell.
Cost of Farming
The amount spent on farming sometimes affect the price of commodity; Farm produce price rise when fertilizer is expensive.
2. Size of Farm (Quantity of Produce)
Farmers have as much as they harvest. They harvest in proportion to what they sow. If you invest a lot in agriculture, you will get much more in return. Although farming gives multiple of what is sown, one can only reap a heavy harvest if he sows heavily.
Big Farm
Agribusiness is not magic.
3. Quality of produce
How good are your produce? A local pig costs much less than a foreign pig. Same with goats and dogs and even plant produce. A basket of plum tomatoes costs more than 5 baskets of tiny ill looking tomatoes.
Fresh Produce
A well fed chicken costs more, big fresh eggs also cost more. My advice is; always get good varieties of seeding, stems or day olds as the case may be.
Conclusion
To my knowledge, the biggest factor that determines the wealth of a farmer is the size of his farm and the size of his storage facility.
In Nigeria today, there are plenty wealthy farmers, who actually control the price of commodities in the market; the likes of Obasanjo and Dangote.
Agribusiness is profitable, you can start with a small farm and still make profit.
