Cynthia Mokgobu started planting a small vegetable garden in her backyard in Senwabarwana, Limpopo, formerly known as Bochum, seven years ago. Today, she grows potatoes, spinach, butternuts and cabbages on just more than 15 hectares of communal land in Gemarke, near Senwabarwana, for local and international markets. Inspired by her father’s passion for farming, Cynthia has become one of Limpopo’s most outstanding young farmers, earning her numerous awards.
Q&A
How do you track your income and expenses?
I use my bank statement.
What kind of budgeting method do you use?
Before and during every production cycle, I always calculate production and operational costs so I know how much of the income to save for the next production cycle.
How do you manage cash flow during the off-season?
Potatoes are my main crop, but I also grow spinach, mustard and chillies, among others, which generate cash flow when my potatoes don’t.
How do you manage debt and loans?
I try to avoid borrowing money at commercial rates. I usually borrow money from my family and pay it back after harvests. This helps me keep my costs low.
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How do you determine your prices?
I use the market price as a benchmark. Depending on what the prices are, I would add a markup to cover other costs I incurred to market the products.
Do you use any financial software or tools specifically designed for farming?
No, I don’t.
How do you assess the financial viability of a new crop or farming technique before implementing it?
If I want to introduce a new product, first I need to do some research on that crop. Then, depending on the suitability of my farm, my own capacity and possible returns, I will decide whether it is viable or not.
How do you manage financial risks?
I save as much as I can and only spend money when it’s necessary. I also rely on various experts – whether for chemicals, seeds or finances – to advise me on the use of their products.
How do you plan for new investments?
I always plan ahead for any long-term investments. I’m currently expanding my potato production, so I’m identifying land now where I’ll be planting next year and I’m doing the budget for that development.
Can you share how you’ve diversified your income sources?
Besides my main potato crop, I grow other short-term crops. I stagger the plantings to ensure harvests throughout the year for better cash flow.
Do you make use of government subsidies or grants?
Some of the biggest expenses in farming are equipment and infrastructure such as fencing, and drilling and equipping boreholes. For a potato farmer, seed is also very expensive. If it weren’t for grants from various organisations, including government, I would not have made it this far, especially with my potatoes.
How did you fund the start of your farming operation?
Mostly through different programmes that paid in cash.
Cynthia has four permanent employees, and she employs casual workers during the busy times of planting and harvesting, when tight deadlines have to be met.
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Who has been the biggest help in accessing these funds?
My extension officer, my local Department of Agriculture office, private consultants, and organisations like LIMA, De Beers and Potatoes SA.
What challenges have you had to overcome to secure financing?
I struggled to get the necessary documentation, and at first I didn’t reach the turnover threshold with my production to qualify for funding. I upskilled myself by doing short courses and attended production training, which helped me improve my turnover. Through these training courses, I also picked up a lot of the paperwork that’s required, as well as the necessary compliance certification, especially for food safety and SA-GAP.
How do you manage insurance and tax?
I’m not currently insured, and I do my own taxes through the online SARS facility.
How do you annually evaluate your financial performance?
I go through my income statements and carefully evaluate my production, looking for areas where I can be more efficient.
Cynthia has a diploma in ornamental horticulture, but chose to grow vegetables.
Are you considering succession planning or financial preparation for future generations?
I haven’t started considering that yet.
Do you have a financial mentor?
No, but Potatoes SA is assigning one for me.
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What is the biggest financial lesson you’ve learnt?
I shouldn’t hire more people than I need.
What has been your biggest financial mistake, and how did you recover from it?
I once spent a lot of money on seed for a crop I decide not to plant. I tried selling the seed but I made a loss.
