Farmers should stop chasing quick profits and start building generational wealth.
By Maile Matsimela, digital editor at African Farming
That was the message from Success Mdluli, agronomist and project manager at the Schoeman Group, during a panel discussion at the recent Sasol Farmers’ Day in Secunda.
Drawing from his experience working with more than 100 emerging farmers as part of the Zamukele Project, Mdluli said one of the biggest differences between successful farmers and struggling farmers is financial discipline.
“The commercial farmers never planted for profits,” he said. “They planted for generational wealth.”
Also: ‘How to build a sustainable farming enterprise’ – Success Mdluli, Schoeman Group
Mdluli warned that many farmers make the mistake of spending the proceeds from a good season instead of reinvesting in their businesses. “The ones who got stuck made their first million and spent it. The next season, they were back asking for help.”
He urged farmers to separate personal and business finances. “You are employed by your business. Your business must pay you a salary.” Mdluli also encouraged farmers to remain loyal and transparent with financiers and development organisations.
According to Mdluli, strong relationships, honest communication and diversified income streams are critical ingredients for long-term farming success.
Also read: Expert advice from Success Mdluli, project manager of the Zamukele programme
