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From Subsistence to Commercial Farming. Smallholder farmers at crossroads


Muniru, a rice farmer from Leresi in Butaleja district has been growing rice for over fifteen years. He however doesn’t know why he’s still a poor man. His story was no different from that of other farmers I met during a Rice Value Addition training organised by The Pearl Foundation for Children and Widows supported by the Skills Development Facility (SDF), a project under the Private Sector Foundation of Uganda (PSFU).

As urban elites, we tend to have a lot of theories on how to transform our largely peasant dominated small holder farming population into a more prosperous one. Unfortunately, until we get to understand the psychology of these farmers, we shall keep shooting off target with our noble but poorly thought out solutions.

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Sorghum crop

Over the past twenty years, the ever growing urbanisation and industrialisation has led to a vast increase in the demand for all types of crops including those that were never considered cash crops three decades ago. Produce like cassava, simsim, soya beans, millet, groundnuts and rice are now leading cash crops for most farmers.

Among the over one hundred farmers I had a chance to train in this PSFU initiative, all of them confessed to selling off at least 85% of their produce. This got me to realise that these farmers are actively delving into commercial farming.

 

If they are earning money, why then do they still lament about poverty?

My overall conclusion was that, these small holder farmers are approaching commercial farming with a subsistence mindset.

Their subsistence mindset is betrayed by the fact that;

  • They freely grow any crop for as long as there is someone to buy it.

  • Growing crops usually takes on the traditional approach that has been tried and tested over the centuries.

  • They spend as little money as possible on growing the crop while expecting to get as much as possible from the produce sale.

  • They sell most of their produce and use the money earned to meet various needs in and outside the home. Little or nothing is put aside for the production process.

  • Little effort is made to store food since it might get spoilt or better still the possibility to earn money from a quick sale outweighs the storage option.

  • There is minimal use of technology.

  • The land farmed is little. Hardly over three acres.

  • There are a lot of post harvest losses due to poor produce handling.

  • They operate as individual farmers right from production to produce marketing.

  • They have little or no understanding of the eventual consumer of their produce.

While I do applaud their move towards commercial farming, I have a lot of discomfort about the way they have chosen to approach it. Many of the mistakes currently being made are borne out of ignorance about commercial farming as well as third party forces like manipulation by the middlemen, poor mobilisation by the local leaders among others.

Any commercial engagement is usually premised on some of the following tenets;

  • A good understanding of the consumer’s expectations

  • A quality offering (service or product)

  • Use of appropriate inputs

  • Supply guarantees

  • Market access

  • Value addition

It’s the lack of knowledge about the foundational requirements of commercial farming that seems to be one of the biggest letdown for these smallholder farmers.

active_participation

Eager Learners

These farmers are not fools nor are they resistant to change, they simply do not know better. They exhibit a high affinity for acquiring new knowledge, and this should be closely followed up with implementation support.

 

 

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The elderly study too

Old and young, these farmers will surprise you by their openness to new ways of doing things. I found farmers who were simply comfortable with the way they grew and sold their rice under the belief that there was no better way.

Following a well structured training that traversed the entire process from seed selection through the transplanting process, to weeding, harvesting and eventually produce sale, they were able to identify numerous ways of improving their product offering.

 

elderly

Packaged rice by the farmers

Farmers that had always been content with selling stone filled broken rice to traders at the mills are now empowered both skills wise and psychologically to add value to their produce upto the level of branding and packaging ready for the eventual consumer. 

Using this experience, I now realise that efforts aimed at improving farmer livelihoods especially under the various wealth creation programs that we are bombarded with need a shake up.

An approach that does not focus on merely availing free inputs to farmers but goes ahead to integrate tailored trainings and mindset change is likely to deliver much better results.

Right now, my challenge has graduated from making these farmers appreciate value addition of their rice produce to seeking out urban markets for their high quality graded rice.

Thanks to the World Bank funded PSFU project, I have had a chance to contribute to the betterment of farmer livelihoods through this Pearl Foundation for Children and Widows initiative.

James Wire is a Small Business and Technology Consultant

Blog: wirejames.com

Twitter: @wirejames

Email: lunghabo (at) gmail (dot) com

Managing Stress as an Entrepreneur


Everyday I meet people that have a lot of admiration for entrepreneurs and eagerly look forward to emulating them. They imagine that running your own business setup is not only the best thing but also most relaxing. Lie!!! This is the biggest lie ever.

The average Joe would rather have a job where orders come from above and all he has to do is execute according to the availed guidelines than be the one to generate those orders while ensuring that the actual destiny of the business remains positive.

Before you start the business, issues of moulding your idea, researching, identifying resources to run the business, product testing, etc will keep your mind racing and can stress you to the limit. When the business kicks off, managing staff, dealing with authorities, marketing, sales, rent, salaries all become another stress factor. Even in maturity, matters concerning departing staff, theft, Tax reconciliations, bidding, accessing credit for big assignments etc have the ability to push your stress levels to a new high. So, there is never a moment when an entrepreneur can say that they are stress free.

This is why the best solution lies in managing it. One should develop the intelligence to detect when it’s kicking in then jump into stress management mode. You can also develop certain behavioural activities around you that automatically help ease on stress.

Compartmentalise your life. Most business owners have a challenge of leading an entirely business life everywhere they go. Upon departure from office, one finds themselves at home punching away on the computer instead of attending to the needs of your partner or children. This tends to lead to late night work which then denies you enough rest in time for the following day. Make it a point to rest from your work, however urgent pending issues may be, they can wait for 8am the following day. This rest should not only be physical but also mental. Lock out all thoughts about work

Deal with challenges smartly. Challenges are part and parcel of the daily routine of an entrepreneur. Some are small and easy to sort out while others are too big to easily shove aside. Deal with them as they come, solve those that you can while not despairing on those that keep lingering. The only roadblock is your mind, if it builds up a particular challenge into something invincible, the stress sets in.

People. Identify the right people to work with or for you. Let us face it, you cant do everything in a business, however simple the individual tasks may seem. Book keeping is all about records, this data entry exercise can mess you up big time in case it’s poorly handled and an audit is being done.

Often times it is the small things that build up our stress e.g. failing to deliver a customer’s order on time as promised just because you got caught up elsewhere. By having an errand boy to take charge of such, you get an opportunity to reduce your problems.

Be Optimistic. The situation may be dire and seemingly hopeless. As opposed to worrying and teetering around in fear, you have a choice to remain optimistic with the hope that things will be fine. Each circumstance has both positives and negatives. Focus on the positives because stress usually arises when our focus is on negatives.

Celebrate your achievements. While running a business, there are achievements made on nearly a daily basis. Society though has conditioned us to take notice mainly of failures, however small. Always make a list of achievements and whenever you are swamped by challenges, instead of being swallowed up by the stress they yield, read out loud your achievement list and congratulate yourself.

Time off. Work can be too much making it very easy for one to work all through the day without noticing. Continuously doing this can lead to stress. During the work day, make time for some relaxation that involves you switching off work fully. I have a passion for watching cartoons. Between 1pm and 2pm, I usually watch downloaded videos of Tom & Jerry cartoons. Their kiddish humour gets me laughing all the way and it has been medically proved that laughing is one way of keeping away stress.

Health. You ought to mind your health. For most of us it’s business as usual until that inevitable moment when we have to see a doctor. The food you eat can help combat stress. Fruits and vegetables rich in anti-oxidants are advisable to eat like carrots, oranges and other citrus fruits. High fibre carbohydrate foods are also advised. Try to avoid caffeine, sugars and high fat foods.

Shove away the fuss. Every challenge comes with a lot of fuss around it. Failure to file tax returns on time could be accompanied with threats of closure by the authorities, freezing of the bank accounts, failure to implement projects, inability to get an updated tax clearance certificate e.t.c. Forget the rest and focus on filing the tax returns otherwise the multiple issues arising might stress you yet they all depend upon one activity.

One day at a time. Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.” (Matthew 6:34) There is a tendency for business owners to lump up worries of an entire month or year ahead and get pre-occupied with them in the present. The Bible assures us that we have enough worries for today, why not save yourself stress of worrying over something which you most likely will only be able to change in future? By handling your challenges and tasks one day at a time, the stress is likely to be far less.

Tame Fear. Elon Musk, the man of the moment in global innovation once said, “Fear is finite, hope is infinite. We are afraid of failing, but it doesn’t stop us from trying.” Fear not only prevents us from achieving but it also catalyses stress whenever we imagine how badly things might turn out to be. It is important to have a strategy of taming fear in you. I personally tend to switch to singing uplifting religious songs as a way of chasing fear from my mind in order to attract faith.

Delete negative thoughts. Thoughts are powerful, so powerful that they yield emotions which could then lead to physical action on your part. Time spent dwelling on negativity can never produce anything positive. Again, you have a choice, to occupy your mind with positivity which brings peace and joy or negativity that gives birth to stress eventually.

Exploit your hobby. We all have something we like doing, more-so something positive to us. It could be sports, music, drawing, reading etc. As a business person, it is crucial that you call up your hobby regularly to calm you down. I have seen people whose stress has been managed by a round of golf.

Have a stress free future.

James Wire is a Small Business and Technology Consultant

Blog: wirejames.com

Twitter: @wirejames

Email: lunghabo (at) gmail (dot) com

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