Thursday, May 19, 2022

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Business Success In Agriculture

 

How many times have you heard a statements like – “Agriculture is down”, “No one can do anything for agriculture”, “Agricultural failure”? Yet it can be otherwise. There are small or large business in agriculture, which have success. According to reports published by European institutions, agriculture is once again becoming a tempting field for investment.

It is estimated that world population will double in 40 years from now, and in 2050, will reach 9 billion. It takes a lot of food and agricultural potential to face the situation. Currently in the world, 1.5 billion hectares are planted and another 120 million hectares would be needed by 2030 to meet the demands. Find out the secrets of business success in agriculture by reading the lines below. Before you decide and plan your business, you need to understand the infrastructure that underlies this step.

  • Choice of land – is an absolutely essential element in starting your future business.
  • Source of water – which is crucial, regardless of the agricultural sector in which you intend to grow, because, beyond the area and the issues that will launch the business climate, access to water at the right time, an existing infrastructure in terms the transport of water and a set of systems and clear rules in terms of legislation are outstanding requirements. One should add the level of confidence in water quality and methods of storage and preservation of water reserves.
  •  Marketing – agriculture is a global business, but most farms are of small families. Business success in agriculture is influenced by the active involvement of the entrepreneur in finding a support internally and externally, identifying the market opportunities, promotion of products obtained both on the domestic market and the foreign, through active participation in various fairs and exhibitions,  prospecting and accessing virtual markets. If you want your business to succeed, you need to identify new growth and expansion opportunities, to invest in educational programs related to food industry, able to find investors to provide financing in marketing campaigns, to build an active presence and marked in rural online sources, to send newsletters and find customers so your business can continue.
  • Successful business depends on access to agricultural capital, capital that can mean the land, any improvements thereto, equipment, infrastructure, investment in innovation and diversification. This capital is necessary for maintaining relationships with suppliers, customers, investors, issues important to the survival of your farm. Involvement in distribution networks capture attention is also an underlying condition.
    • Other issues that need to be considered relates to fuel costs and the types of grant, as identifying and accessing funds to reduce the cost of electricity used to grow crops.
    • Individual farmers need a business plan, and the farms associations need the growing economic development deriving from strategic business planning. Regardless of business size, rigorous planning is a guarantee of success.

To enjoy the business success in agriculture, never lose sight of:

– Business planning
– Market research regarding “supply and demand”
– Studies about retail market
– Planning strategies for development / expansion
– Objective and rigorous evaluation of the economic
– Integration of financial subsidy programs in your business plan

The more complicated reality is that, at present, there is an overwhelmingly large number of regulations that need to be considered for your business to succeed. Most times, these rules are not necessarily related to agriculture, but business started in this field will have to include them. Farmers should be able to observe, responsibly and effectively, these aspects for the benefit of business success in agriculture:

  • Managing legal forms for labor (full-time, part-time seasonal worker)
    • Identifying special needs related to marketing – safe processing products (meat, milk, eggs, cheese, etc..)
    • The types of pesticides used
    • Impact that the farm has on the environment
    • Restricting traffic from outside to inside, to limit losses, data often stolen.

Frequently, because of the myriad of regulations it’s becoming increasingly difficult for farmers to be able to handle themselves in the legal maze, which is why the advice of specialists is needed. First, before you hire a consultant, it is important to hire a reliable accountant for business success in agriculture and one to be feasible.

Business success in agriculture and the degree to which you succeed in your efforts involve the local community by increasing awareness of the benefits of consumption of quality products that take into account the health of consumers, not just the financial side.

 

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