New farmers must understand their financial positions

JP van den Berg, the 2018 Toyota SA/ Agri SA Young Farmer of the Year, farms seed potatoes, stud and commercial cattle, seed grass, and game in Tosca, North West. He spoke to Siyanda Sishuba.

How did you experience 2018? Our production was above the 10-year average, but compared with 2017, our potato crop yield was down. Potato trading went well, and I am very fortunate to supply reliable clients. One of the many requirements for sustainable agriculture is to have a good market to which to supply your product.

While the wheat yield was good, high input costs and an unfavourable exchange rate caused this very important industry to be under pressure because of decreasing profit margins. Due to climate change, we are starting to experience frequent and extreme droughts, and this has created inconsistencies in production, not only in the area where I farm, which is known as one of the drier areas in our country, but also in higher-rainfall areas.

What advice do you have for aspiring farmers?

Use your skills to implement management practices that can make you profitable even when others are not. Rather make something you have experience in profitable than starting something completely new. Consult advisers and mentors and use their knowledge to help you understand the environment, challenges and opportunities of the industry before you start investing time and money. Start on a small scale, and expand your business according to demand. Understand your financial position and do proper planning. This limits your risk of a financial deficit at the end of the year.

• Email JP van den Berg at jpbuttermere@gmail.com.