Mkulima today diversification in farm management and clear management structures is the best way to maximize profits. Farming is no longer about hit the farm and weeding but building a profitable enterprise.

Smart farmers use effective measures to ensure their farm businesses manage losses efficiently in bad seasons. In business, how you manage risks determines your profits or losses. Remember you are not farming for fun but to earn money and take care of your family. Therefore all you need is to farm as a business. Examples of risks in farming are drought, diseases & theft.

Farm management and productivity

Kirui is a farmer. He made huge losses last season but wants to manage better now and increase the productivity of his farm.

He asked Sam, a farm business expert, for advice. Sam taught Kirui 5 easy tips for managing farm losses.

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He advised Kirui to diversify his farming ventures. This actually means to engage in many types of crop or animal farming. Engaging in more than one type of farming helps a farmer to recover losses from one farming activity with profits from another type.

In case of any problem, the other venture will keep your head above the water and stop you from drowning in the sea of losses.

Sam also advised Kirui to make a calendar for his farm to help him avoid missing any spray or vaccine on his crops and animals. Having a calendar for your farm should be one of the mandatory duties you do. This will help with how you keep tabs and records on your farm.

He was advised to identify a ready market for his produce in advance to avoid losses after harvesting. Several farmers only start looking for market after harvesting their produce.

This is not the best way to go about it. At all times make an effort to have your produce sold before the harvesting period.

Doing this will ensure your customers have consistent supply of produce and profits for your farm.

The rule of thumb

The good rule of thumb is to try and find a client  before you start farming and if not possible during the farming period but not after harvesting.

Sam advised Kirui to consider taking up farm insurance so that he is paid the value of his investment in case of an unexpected loss. Just like the same way you ensure your car think of insuring that cow that gives you the white gold in liters day in day out.

Find one insurance underwriter that lines up with your farm’s needs and work with them.

Farm insurance covers either animals and crops or both. Ask your bank to advice you on the best farm insurance for your farm.

Lastly, Sam advised Kirui to have good, well aerated storage for his produce free from pests & theft to manage storage losses.

Kirui is very excited to learn how to manage his farm business risks this year and boost his farms productivity. Besides crop farming, he wants to rear a dairy cow.

Managing farm risks is key to reducing losses in your farming. Follow Sam’s 5 easy ways to manage losses in your farm business, too.

Your broiler hens are almost mature for sale. Which is the best way to manage market risks? While engaging a broker is still an option make it the last on your list. Meanwhile, find potential buyers to purchase your produce.

Which is the best way to manage losses due to bad weather conditions in crop farming? When in this situation your farm calendar will ensure you face the situation with pride but don’t forget your farm insurance.

Although farm insurance is a way to cover losses from bad weather, the best way is to plan and follow a farm calendar to avoid farming offseason while following the proper farm management guide.

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