by AgriforaFarming can be a family business
Having a family business can be challenging, however when done correctly and with the right attitude, it has proven to be very rewarding and liberating. A farm can grow from subsistence to commercial through the combination of family values, farming principles, and business principles.
Farming principle: the practice of growing/cultivating plants and livestock.
Business principle: A commercial activity designed to supply goods and/ or services demanded by the market at a profit. For the farm business to be classified as a family business it needs to have two or more family members are involved and the majority of ownership or control.
Why run a farm business as a family?
This approach to farming increases family income by promoting the involvement of all family members in the planning, decision-making, and management aspects of the farm business. All members work towards the same goal of success.
Other motivations can be:
- Higher levels of trust
- Flexibility and versatility
- Vision and long-term goals
- Generational
Areas of concern
Before a family can run a farming business, they first must determine HOW they will run it. This may include the following factors:
- Roles of each individual (gender is not a limiting factor)
- Decision-making process
- Conflict resolution
- Money, how it is used and distributed
Once the above mentioned have been clarified and all members agree, they move on to the next stage of learning risk management.
A simple farm business model.
