18/10/2024
𝐃𝐨𝐧'𝐭 𝐂𝐨𝐮𝐧𝐭 𝐘𝐨𝐮𝐫 𝐂𝐡𝐢𝐜𝐤𝐞𝐧𝐬 𝐁𝐞𝐟𝐨𝐫𝐞 𝐓𝐡𝐞𝐲 𝐇𝐚𝐭𝐜𝐡!
A mistake some of us make as farmers is spending expected profits long before our farm projects are ripe for harvest. For instance, you stock a pen with broiler chicks and before the birds reach the standard market weight, you have started spending your expected returns like the money is in your hands. Who does that? Well, some farmers (mostly newbies) have committed this error in the past.
You must understand that livestock farming comes with uncertainties. Hence, spending profits that you have not earned is not the right thing to do. Yes, your animals may be growing and looking healthy today. However, uncertainties such as disease outbreaks, poor performance, unexpected market price changes, natural disasters and farm accidents can occur, potentially wiping them out. You could incur huge losses if such an enterprise is not insured.
As a farmer, you must do your best to avoid making purchases, taking out loans or paying off debts because you believe money is coming. Just imagine for a few seconds what would happen if what you relied on fails to bring the expected or targeted profits.
What should you always do as a farmer?
1. Rather than spending ahead, plan for contingencies. If possible, keep a particular sum of money as a buffer when an unforeseen event occurs.
2. Take proper care of your animals and farm. When they are properly managed and are provided with high-quality feed, they will perform excellently.
3. Insure your farm business against unexpected losses and other uncertainties that could ruin your business or put you into a financial mess.
4. Never make financial commitments based on assumptions. Wait until your farm investment has matured before counting profits.
5. Be optimistic and be financially disciplined
Have you ever encountered a situation where things didn’t go as planned? Share your story in the comments and let’s learn together!