The Business of Farming: Reaping The Benefits of A Farm Enterprise

The word ‘farming’ typically brings to mind the planting of crops and the rearing of animals.

However, with current and emerging opportunities for farmers and the advancement of technology, it appears the time has come for a paradigm shift, where the idea of farming becomes ‘operating a farm enterprise’.

Senior Agricultural Economist in the Ministry of Agriculture and Fisheries, Junior Bent, defines an enterprise as a legal entity possessing the right to conduct business on its own, enter into contracts on property, incur liabilities and establish bank accounts.

Farming as a business entails utilising and managing specific resources such as capital, land and technologies.

Mr. Bent, speaking at Thursday’s (July 7) ‘Farming as a Business’ conference put on by the Jamaica Organic Agriculture Movement, says the enterprise approach to farming begins with planning.

“From before we decide that we’re going to plant some callaloo, we’re going to need to establish a plan. How are we going to source the materials? Where are we going to be doing this farming? Who are we going to be selling to?,” he challenged.

He says establishing a plan, supported by adequate record-keeping, enables the farmer to manage and mitigate certain risks such as climatic conditions, pest infestation and diseases that could “wipe away your investment”.

A major benefit to this businessman-like approach to farming, according to Mr. Bent, is increased efficiency that could lead to profitability and wealth.

“While we have the passion for it and we’re excited about the fruits, we are also in the business of making money; we are creating wealth not only for ourselves, not only for our families but for the country,” he says.

He explains that operating the farm enterprise lends itself to being able to access capital from financial institutions and investors. Banks are more likely to lend to farmers who possess business plans and strategies that are clear, coherent and involve fewer risks.

Another significant benefit of the farm enterprise is the creation of employment opportunities. Mr. Bent preempts that, “with the right planning, preparation and improved efficiency, you will need to expand, and that expansion, inevitably, will come with providing employment opportunities to those around us”.

He adds that farmers who operate enterprises are also creating sustainability for their farms and not just preparing for the next crop cycle. Like any business owner, these farmers must look at the trends in the industry and make informed decisions.

Owner of Ket’s Gourmet Farm, Kermit Tucker, strongly supports this view. He adds that, at times “we have blocks in our market [because] everybody wants to plant the same thing at the same time and then you can’t get a price for it because everybody is producing tomatoes.

“Figure out what you’re going to do well with and work at producing that,” he advises.

He is imploring farmers to develop a focus and take their businesses seriously, noting that unlike the traditional forms of employment, operating the farm enterprise is not limited by an age barrier.

Currently 76 years old, the farmer of lettuce and herbs says that at his age, “nobody will employ me, my résumé wouldn’t even be looked at, but I can decide what I want to earn from my farming business”.

He lists working from home with no commute and no traffic, increased family time and flexible work hours as attractive perks that come with the business.

His main encouragement to other farming entrepreneurs is “don’t be selfish in this business”.

“Whatever I learn, I want to teach you… . You need to share what you know and as you open yourself, you will become a reservoir for information that is going to benefit you,” he says.