Farming is a long game: Five lessons in building a business that lasts

Agriculture is not a business for those looking for quick returns. It demands patience, careful planning and the ability to adapt to changing circumstances. Drawing on his experience as a commercial farmer and businessman, Tshedisegang “Tshedi” Molatedi shares five lessons he believes every farmer should embrace to build a sustainable agricultural business.

By Talitha Janse van Vuuren, multimedia editor at African Farming

Agriculture will always involve uncertainty, but farmers who plan ahead, continue learning and build resilient businesses are better equipped to navigate whatever challenges the next season brings.

1. Think beyond the next season

Successful farmers don’t make decisions based only on the current production season. They plan years ahead, whether that means expanding the business, replacing ageing orchards or vineyards, or investing in new opportunities.

“You need to have an expansion plan,” Tshedi Molatedi says. “You need to know where the business is going.”

Long-term planning allows farmers to prepare financially for major investments instead of reacting when infrastructure or crops reach the end of their productive life.

Also read: Business insights from livestock and crop farmer Nkosana Mtambo

2. Protect your cash flow

Cash keeps a farming business alive. “The business needs cash,” Molatedi says. He encourages farmers to reinvest as much money as possible into their businesses rather than withdrawing profits too early.

Maintaining a healthy cash reserve gives a business the flexibility to withstand droughts, hailstorms, rising input costs and other unexpected challenges. “You don’t know what the weather will be like next year, two years from now or three years from now. Keep as much money in the business as you can.”

3. Never stop learning

Today’s farmers have access to more information than any previous generation. “Don’t underestimate your laptop,” Molatedi says. “Don’t underestimate your cellphone.”

From production advice and market information to financial management and new technology, the internet offers countless opportunities for farmers to improve their businesses.

4. Build the right team

No farmer can be an expert in every discipline needed to run a farming business, Molatedi says. “You won’t be the best in accounting. You won’t be the best in maintaining your implements.”

He encourages farmers to surround themselves with specialists. Working with accountants, lawyers, agronomists, mechanics and marketing specialists allows farmers to focus on what they do best while making better-informed business decisions.

5. Know your business inside and out

Even though specialists play an important role, farmers should understand every aspect of their businesses. Whether speaking to financiers, investors or customers, they should be able to explain their production systems, finances and long-term plans with confidence.

For Molatedi, understanding the business goes hand in hand with preparing for the future. Farming is a long-term commitment. “You have to understand what you’re getting yourself into.”