FAQ's

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" height=90 BGCOLOR="#006699" TEXT="#080000" bgproperties="fixed" background="02c285a1erlcgo.gif"> <div> <FONT SIZE="5" COLOR="#FFCC66" FACE="Arial" ><B>FARMING SUCCESS</B></FONT><B>     |    </B><B> </B><A HREF="index.htm" TARGET="_top" TITLE="FARMING SUCCESS"><U><B>Home</B></U></A></div> <div> <A HREF="about.htm" TARGET="_top" TITLE="About the book"><U>About</U></A><FONT SIZE="1" COLOR="#FFFF99" FACE="Symbol" >   ·   </FONT><A HREF="order_form.htm" TARGET="_top" TITLE="Order form"><U>Order form</U></A><FONT SIZE="1" COLOR="#FFFF99" FACE="Symbol" >   ·   </FONT><A HREF="casestudy.htm" TARGET="_top" TITLE="Case study farmers"><U>Casestudy</U></A><FONT SIZE="1" COLOR="#FFFF99" FACE="Symbol" >   ·   </FONT><A HREF="authors.htm" TARGET="_top" TITLE="Meet the authors"><U>Authors</U></A><FONT SIZE="1" COLOR="#FFFF99" FACE="Symbol" >   ·   </FONT><A HREF="launch.htm" TARGET="_top" TITLE="Launch"><U>Launch</U></A><FONT SIZE="1" COLOR="#FFFF99" FACE="Symbol" >   ·   </FONT><A HREF="referees.htm" TARGET="_top" TITLE="What the referees said"><U>Referees</U></A><FONT SIZE="1" COLOR="#FFFF99" FACE="Symbol" >   ·   </FONT><A HREF="comments.htm" TARGET="_top" TITLE="Comments on the book"><U>Comments</U></A><FONT SIZE="1" COLOR="#FFFF99" FACE="Symbol" >   ·   </FONT><A HREF="media.htm" TARGET="_top" TITLE="Media comments"><U>Media</U></A><FONT SIZE="1" COLOR="#FFFF99" FACE="Symbol" >   ·   </FONT><A HREF="boerdery.htm" TARGET="_top" TITLE="Boerderybestuurskennis"><U>Boerdery</U></A><FONT SIZE="1" COLOR="#FFFF99" FACE="Symbol" >   ·   </FONT>FAQ<FONT SIZE="1" COLOR="#FFFF99" FACE="Symbol" >   ·   </FONT><A HREF="sitemap.htm" TARGET="_top" TITLE="Sitemap"><U>Sitemap</U></A><FONT SIZE="1" COLOR="#FFFF99" FACE="Symbol" >   ·   </FONT><A HREF="links.htm" TARGET="_top" TITLE="Links"><U>Links</U></A><FONT SIZE="1" COLOR="#FFFF99" FACE="Symbol" >   ·   </FONT><A HREF="agricultural_management.htm" TARGET="_top" TITLE="Agricultural Management"><U>Agricultural Management</U></A></div> <div> </div> </td> </tr><tr> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I>FAQ's</I></div> <div> <IMG SRC="3e2580a0.jpg" border=0 width="600" height="10" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <bR> <div> <B><IMG SRC="0f446270.gif" border=0 width="70" height="39" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"> </B></div> <div> <A HREF="mailto:duplesdm.sci@mail.uovs.ac.za " TARGET="_top" TITLE="mailto:duplesdm.sci@mail.uovs.ac.za "><U><B>duplesdm.sci@mail.uovs.ac.za </B></U></A></div> <bR> <div> <TABLE BORDER="0" CELLPADDING="4" CELLSPACING="8" WIDTH="700" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP COLSPAN=2 BGCOLOR=#3399CC HEIGHT= 23 WIDTH="670"><div> <B> <A NAME="faq_s"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="1" ALIGN="bottom" WIDTH="1" HSPACE="0" VSPACE="0" ></A></B><B>FAQ's</B></div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 16 WIDTH="219"><div> <I><B>Questions</B></I></div> </tD> <tD VALIGN=TOP BGCOLOR=#FFCC80 WIDTH="441"><div> <I><B>Answers</B></I></div> </tD> </tR> <tR> <tD VALIGN=TOP COLSPAN=2 HEIGHT= 45 WIDTH="670"><div> Dr Wimpie Nell of the University of the Free State, co-author of <I>Strategic Approach to Farming Success</I>, a step-by-step guide to agricultural management.  He told <A HREF="mailto: amandac@caxton.co.za" TARGET="_top" TITLE="mailto: amandac@caxton.co.za"><U>Amanda Coetzee</U></A> from the <I>Farmer's Weekly </I>(29 April 2005) how local farmers can improve their global competitiveness by applying the universal principles of successful farming.</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 30 WIDTH="219"><div> What are the main characteristics of successful farmers?</div> </tD> <tD VALIGN=TOP WIDTH="441"><div> They must be able to assess the future, be able to create and sustain competitive advantages and identify opportunities before competitors do.</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 60 WIDTH="219"><div> How do South African farmers compare internationally?</div> </tD> <tD VALIGN=TOP WIDTH="441"><div> Local farmers are generally regarded as some of the most productive in the world, especially those who adopt improved technologies that focus on increased productivity of their direct productive assets, such as land and livestock.</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 76 WIDTH="219"><div> Can local farmers improve?</div> </tD> <tD VALIGN=TOP WIDTH="441"><div> There is always room for improvement. While technical, physical and economical management is at an acceptable level, financial and strategic management needs to be looked at. In the book we refer to signs of surplus maize production already present in 2003 and 2004. If farmers had taken proactive steps and paid attention, the current grain crisis could have softened on farm level.</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 91 WIDTH="219"><div> With all the non-production issues facing farmers, such as land reform, how should farmers prioritise?</div> </tD> <tD VALIGN=TOP WIDTH="441"><div> The highest priority should always be to make a profit and to ensure sustainability. The focus must always be to make more money on one's own equity (Re) than on what is paid for in foreign capital or earned on total capital applied (Ro).  This principle (Re>Ro) is applicable to all farms.  It doesn't matter if it is a commercial or emerging business. It is highly unlikely that land reform or AgriBEE will be successful if this principle is not applied.</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 60 WIDTH="219"><div> How do farmers change from price takers to price makers?</div> </tD> <tD VALIGN=TOP WIDTH="441"><div> By getting more involved in the supply chain. What farmers need to remember is that his places more pressure on management capacity. Strategic thinking, planning and management are some of the most important tools a farm manager can use to increase management capacity.</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 60 WIDTH="219"><div> What are the main issues tackled in the book?</div> </tD> <tD VALIGN=TOP WIDTH="441"><div> It forces farmers to think beyond tradition and to activate creative and entrepreneurial skills.  The book takes the farm manager on a step-by-step journey to farming success. As one farmer said after a three-day course based on the book: "I now see my farming business in a broader perspective."</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 30 WIDTH="219"><div> How universal are the principles you describe in the book?</div> </tD> <tD VALIGN=TOP WIDTH="441"><div> The principles described in the book can be applied to any farming business in the world.</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 60 WIDTH="219"><div> Are local farmers successfully adopting technology?</div> </tD> <tD VALIGN=TOP WIDTH="441"><div> If one looks at the adoption rate of precision farming practices and genetically modified crops, I would say the more progressive farmers are, in some cases, doing better than their international counterparts. I don't think technology can ever be adapted quickly enough, but our farmers are doing well.</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 15 ><NOBR><div> What is the future of family farms?</div> </NOBR></tD> <tD VALIGN=TOP WIDTH="441"><div> Family farms will always play an important role.</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 121 WIDTH="219"><div> Are South African farmers' ideas of land too traditional?</div> </tD> <tD VALIGN=TOP WIDTH="441"><div> Farmers do not always have to own land to be involved in farming. It is, however, difficult in South Africa to only rent land for farming because rented land rates have increased substantially over the past few years. The rates are continuing to move pwards to well above the general norm of between 4% to 7% of the productive value of land.</div> <div> If farmers are paying more than 7% of productive value, the chances are very good that the financial leverage factor will become negative (Re<Ro) with an accompanying deterioration in the financial position of the farming business.</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 60 WIDTH="219"><div> Is South African agriculture organised enough?</div> </tD> <tD VALIGN=TOP WIDTH="441"><div> It's difficult to say. There are countries where farmers are better organised than in South Africa and countries where organisation is worse. It is estimated that 80% of the farmers and agribusinesses belong to organised agriculture. Unity is an absolute necessity for sustainable success.</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 121 WIDTH="219"><div> What competitive edge do local farmers have?</div> </tD> <tD VALIGN=TOP WIDTH="441"><div> South African farmers are perhaps the best in the world when it comes to conserving moisture in crop production, which in turn lowers production risk. What's more, farmers are able to farm successfully in a country with no agricultural subsidies.</div> <div> South Africa also has a developing economy and farmers are also able to compete internationally with farming businesses that get subsidies and operate in developed economies. I would say this aspect is perhaps one of the most important competitive edges South African farmers have.</div> </tD> </tR> <tR> <tD VALIGN=TOP BGCOLOR=#FFCC80 HEIGHT= 76 WIDTH="219"><div> European farmers' main function is often regarded not as being farmers, but as custodians of the land. Should local farmers also start looking into other farming systems?</div> </tD> <tD VALIGN=TOP WIDTH="441"><div> There are already a number of South African farmers looking into conservation options. These generate extremely positive results, especially in lowering production risk.</div> </tD> </tR> </TABLE></div> <bR> <bR> </td> </tr></table></body>