NO ESCAPE: You need maths to run a profitable farm

NO ESCAPE: You need maths to run a profitable farm

Like in any other business, a farmer needs to understand what the maths will be telling him if he or she is going running the farm for a pr... 3:43:00 AM

Like in any other business, a farmer needs to understand what the maths will be telling him if he or she is going running the farm for a profit.

The good thing is that it does not have to be the complex maths that science uses to explain the phenomena in the universe. An understanding of simple mathematics that you use every time you go shopping to the grocery store is sufficient.

What I am saying is you need to get a good, clear and unemotional picture of the state of your farming business. If the maths is telling you, you are incurring losses, do not ignore that (like what most small holder farmers do) and instead console yourself by saying it’s what you love to do. 

If you are going to farm for profit, understand what the maths is saying about your finances, about the weather, about productivity from your workforce, about the season and the market etc. The difference between profit and loss at a company or farm is the ability of the person in charge understanding the math and making the correct decisions.

Here’s where you need maths in your farming business:

• Measuring land.
• Measuring inputs such as seed, fertiliser and chemicals, and counting tools and livestock.
• Working with equipment like knapsacks for fertiliser spreading, and measuring chemicals and fuels. For example: how much oil to mix with petrol for a two-stroke motor.
• Multiplication and addition for wages.
• Working with percentages with profit-making and interest payments.
• Calculating yields for budgeting and cash-flow purposes.
• Understanding volume and weight. How much is a litre or millilitre of liquid for mixing chemicals, injecting or feeding 
  inoculations? How much is a kilogram for packaging products for sale? It’s no good filling a plastic bowl with produce to 
  sell without knowing how much is in there and what the selling price should be to make a profit.
• Keeping track of your bank and other accounts – debtors (people who owe us money) and creditors (people we owe money to – in other words, accounts we have to pay).

Maths will find you around every corner and you need it to have a thriving business.