HAWASSA UNIVERSITY

COLLAGE OF AGRICULTURE

COURSE:- FARM MANAGEMENT

Group Name ID

Amare Aschalew 0360/14

Amdework Mezgebu

Debora Dinsa

Ermias Abiwot

Submited date : 19/04/17

Submited to : Tsion Yohannes

1.Why farmer keep record and account?

Farmers keep records and accounts for several important reasons:

1. Financial Management: Keeping accurate financial records helps farmers track income and expenses,
assess profitability, and manage cash flow. This is essential for making informed business decisions.

2. Budgeting and Planning: Detailed records allow farmers to create budgets and forecasts, helping them
plan for future expenses, investments, and potential changes in market conditions.

3. Tax Preparation: Accurate records simplify the process of preparing taxes, ensuring that farmers
comply with regulations and can take advantage of applicable deductions or credits.

4. Performance Evaluation: By maintaining records of production, yields, and costs, farmers can evaluate
their operational efficiency and identify areas for improvement.

5. Decision Making: Detailed records inform decision-making regarding crop selection, livestock
management, and investment in equipment or technology based on what has worked or not in the past.

6. Regulatory Compliance: Many agricultural programs and subsidies require detailed documentation.
Records help farmers stay compliant with government regulations and quality standards.

7. Risk Management: Keeping records assists farmers in assessing risks and developing strategies to
mitigate them, such as diversifying crops or implementing insurance policies.

8. Historical Reference: Records provide a historical reference that can help in identifying trends over
time, understanding how different practices affect productivity, and learning from past experiences.

9. Access to Financing: Lenders often require financial statements and records to assess a farmer's
creditworthiness when applying for loans.

In summary, maintaining comprehensive records and accounts is crucial for the sustainable and
profitable management of a farm

2.What are characteristics of good farm plan

Marketing planning is a crucial aspect of any business, including agriculture. For farmers and
agribusinesses, effective marketing planning helps ensure that products reach the right customers, at
the right time, and at the right price. Below are key elements and considerations for developing a robust
marketing plan:

1. Market Research and Analysis

- Identify Target Market: Understand who your customers are. This could include local consumers,
wholesalers, retailers, or processors.

- Analyze Market Trends: Stay informed about current trends in consumer behavior, preferences, and
emerging markets.

- Competitor Analysis: Assess your competitors, their offerings, strengths, weaknesses, and market
positioning.

2. Setting Clear Marketing Goals

- SMART Objectives: Establish clear, measurable objectives that align with overall business goals. For
example, increasing sales by a certain percentage or entering a new market segment.

- Brand Awareness: Consider goals related to increasing awareness of your brand within your target
market.

3. Developing a Unique Selling Proposition (USP)

- Differentiation: Identify what makes your product unique. This could include quality, sustainability,
organic certification, or local sourcing.

- Positioning: Decide how you want to position your brand and products in the minds of your target
customers.

4. Marketing Strategies

- Product Strategy: Decide on product features, quality, and any potential value-added aspects (e.g.,
packaging, branding).

- Pricing Strategy: Develop a pricing model that reflects your market positioning, costs, and competitors’
pricing. Consider psychological pricing, discounts, or premium pricing strategies.
- Promotion Strategy: Plan ways to promote your product, which may include:

- Advertising: Use social media, newspapers, or local radio.

- Public Relations: Engage with the media and community to enhance brand image.

- Sales Promotions: Offer discounts, samples, or incentives to encourage trial and purchase.

- Digital Marketing: Leverage websites, email marketing, and social media platforms.

5. Distribution Strategy

- Channels: Determine the best channels for reaching your customers—this could include farmers'
markets, co-ops, local grocery stores, direct-to-consumer models, or online sales.

- Logistics: Plan how products will be stored, packaged, and transported to consumers.

6. Building Relationships

- Networking: Establish relationships with stakeholders, including suppliers, retailers, and customers.
Networking can enhance your market presence and lead to new opportunities.

- Customer Engagement: Develop a plan for engaging with customers regularly to build loyalty. This may
include newsletters, feedback surveys, or social media interaction.

7. Monitoring and Evaluation

- Performance Metrics: Establish metrics to track the effectiveness of marketing efforts (e.g., sales data,
customer acquisition costs, return on investment).

- Regular Review: Periodically review the marketing plan to assess what is working and what isn’t. Be
prepared to adjust strategies based on this assessment.

8. Budgeting for Marketing

- Allocate Resources: Determine a budget that takes into account all aspects of your marketing plan,
including advertising, promotions, digital marketing, and events.

- Cost-Effectiveness: Regularly evaluate the cost-effectiveness of various marketing strategies to

optimize spending.

9. Leveraging Technology

- Analytics Tools: Make use of tools that can provide data analytics on customer behavior and sales
trends.

- Social Media Strategy: Utilize platforms relevant to your target audience for engagement and brand
promotion.

10. Adapting to Change

- Be Flexible: Markets change due to economic shifts, consumer preferences, or external ...See More

3.Discuss about planning for marketing

A good farm plan is essential for effective agricultural management and can significantly
enhance productivity, sustainability, and profitability. Here are several key characteristics of a
good farm plan:

1. Clear Goals and Objectives:

- Defined short-term and long-term goals that align with the vision of the farm.

- Specific, measurable, attainable, relevant, and time-bound (SMART) objectives.

2. Comprehensive Assessment of Resources:

- Inventory of land, water, labor, equipment, and financial resources.

- Analysis of soil quality, topography, climate, and available inputs.

3. Sustainability:
- Integration of environmentally sustainable practices, including crop rotation, organic farming,
and conservation techniques.

- Consideration of biodiversity and ecosystem health.

4. Financial Viability:

- Detailed budgeting, including revenue projections and cost analyses.

- Strategies for funding, investments, and financial risk management.

5. Crop and Livestock Selection:

- Choice of crops and livestock that are suited to local conditions, market demand, and the
farmer’s expertise.

- Diversity in production to reduce risk and improve resilience.

6. Operational Efficiency:

- Definition of daily operations, including planting, harvesting, and maintenance schedules.

- Clear delegation of responsibilities among staff or family members.

7. Risk Management:

- Strategies for managing risks, such as crop failure, market fluctuations, and natural disasters.

- Insurance plans and contingency strategies.

8. Market Analysis:

- Assessment of market trends, pricing strategies, and potential customers.

- Identification of value-added opportunities and diversification options.

9. Regulatory Compliance:

- Awareness of and compliance with local, state, and federal regulations, including land use
laws, environmental requirements, and food safety standards.

10. Technology Utilization:

- Integration of appropriate technologies for precision agriculture, data management, and
operational efficiency.

- Adoption of tools that enhance productivity and facilitate monitoring.

11. Continuous Improvement and Flexibility:

- Mechanisms for monitoring progress and evaluating outcomes regularly.

- Willingness to adapt the plan based on new information, changing circumstances, and
feedback.

12. Community Engagement:

- Consideration of the farm’s impact on the local community and involvement in community
activities.

- Building relationships with local businesses, suppliers, and consumers.

13. Record Keeping:

- Detailed record-keeping systems for tracking production, expenses, sales, and any relevant
data to inform decision-making.

14. Education and Capacity Building:

- Commitment to ongoing learning, training, and skill development for farm management and
practices.

By incorporating these characteristics, a farm plan can provide a structured approach to

achieving agricultural success while promoting sustainable practices and community well-being.

4.How important planning for market to producer or farmer

Planning for market is crucial for producers and farmers for several reasons:
1. Understanding Demand: Planning helps farmers identify market trends, consumer
preferences, and seasonal demand for their products. This understanding allows them to
produce the right quantities and types of crops or livestock, reducing waste and increasing
profitability.

2. Resource Allocation: Effective market planning enables farmers to allocate resources such as
land, labor, and finances more efficiently. By understanding market needs, farmers can avoid
overproduction or underproduction, leading to better resource management.

3. Strategic Pricing: Knowledge of market conditions allows farmers to set competitive prices.
They can adjust strategies based on supply and demand dynamics, ensuring they maximize their
revenue.

4. Risk Management: Market planning helps farmers anticipate fluctuations in prices and
demand, enabling them to develop strategies to mitigate risks. This may include diversifying
crops or securing contracts with buyers.

5. Improved Marketing Strategies: Understanding the target market facilitates the development
of effective marketing strategies. Farmers can choose the right channels for selling their
products, whether through farmers' markets, online platforms, or direct-to-consumer sales.

6. Long-Term Planning: Successful farmers often engage in long-term market planning, which
involves forecasting future trends, exploring new markets, or investing in new technology. This
approach can lead to sustainable growth and improved competitiveness.

7. Access to Resources: Some grants or funding opportunities may require farmers to

demonstrate a market plan or a business strategy. Having a solid plan can help secure financial
support and investment.

8. Collaboration Opportunities: With a clear market plan, farmers can identify potential
partners, such as wholesalers, retailers, or cooperatives, leading to better distribution channels
and enhanced market reach.

9. Sustainability Practices: Market planning can promote sustainable practices by enabling

farmers to choose crops or methods that align with consumer preferences for sustainability,
organic products, or local goods.
Overall, market planning is integral to enhancing the economic viability and sustainability of
farming operations, helping farmers navigate challenges and seize opportunities in the
agricultural market