Succession planning in farming encouraged

28 July 2021 | Agriculture

STAFF REPORTER

WINDHOEK

Succession planning has proven to be a key strategy that has seen many families with farming businesses enjoy sustainable incomes that have enabled them to sustain livelihoods for many generations.

Agribank has recommended that farmers should identify those passionate to pursue farming as a business among their children and teach them all pertinent aspects of managing a farm as a business.

On average, it takes about 10 to 20 years for one to build a highly profitable farming enterprise, Hanks Saisai, Agribank’s technical advisor for crops and poultry, said.

However, he added that one of the critical concerns that most successful farmers face is a succession plan that will see the well-established agribusiness venture passed on to the next generation.

“Overall, most commercial farmers have succession plans for their farming businesses, and this is no exception in Namibia.”

Generational enterprise

According to Saisai, the average age of a farmer in Namibia is 62, and with agriculture being one of the main contributors to the country’s gross domestic product (GDP), it is important for those running these crucial farming ventures to ensure that such farming enterprises continue in the unfortunate case of death, or when they decide to retire.

“Therefore, to transform an agribusiness into a generational enterprise, an instrumental tool farmers can institute is a succession plan.”

By definition, a succession plan is the process of identifying and developing new leaders who can replace old leaders when they leave, retire or die, he said.

He added that this is equally applicable in the case of a farming business, for a farmer to identify from onset potential persons who can one day carry on the management and leadership of the farm to ensure continuity of business on the farm.

“Over the years, commercial farmers have utilised this tool very effectively, and this has helped them sustain their businesses for many generations”.

Transformation

According to Saisai, farmers with well established businesses - such as stud livestock producers, crop farmers and even some communal farmers who are renowned in the industry - can transform their agribusinesses into generational business ventures by immediately involving their children from a tender age.

This allows the next generation to understand how the farm operates, makes its income and its crucial assets of production, he said.

“By the time the farmer retires or in the unfortunate case of death, the immediate children can take over the farming business and continue its operation until they also pass it on to their children and then later to their grandchildren as well.”

Moreover, Saisai said an easy way to encourage young people to be involved in farming is by availing information such as financial statements that will show them that farming is indeed a business that can sustain generations.

Similar News

 

Agribusdev to know fate by year-end

20 hours ago | Agriculture

OGONE TLHAGE WINDHOEKGovernment will pronounce itself on the future of embattled public entity Agribusdev before the end of the year, public enterprises...

Enormous challenges threaten beef industry

1 day - 14 October 2021 | Agriculture

ELLANIE SMITWINDHOEKThe challenges in the beef value chain are enormous and have the potential of bringing the entire industry to a standstill, which would be...

FNB and partners help farmers in fire- and drought-stricken...

1 day - 14 October 2021 | Agriculture

STAFF REPORTERWINDHOEKFNB Namibia once again joined many others in assisting the Namibia Farmers Association’s drought relief project.FNB’s donation was used to purchase lucerne, which was...

Imminent ban on milk imports likely

1 day - 14 October 2021 | Agriculture

STAFF REPORTERWINDHOEKAfter almost a decade of knocking on government doors to rescue the dairy sector, the government has expressed willingness to intervene.Agriculture minister Calle Schlettwein,...

NAU supports land reform

1 day - 14 October 2021 | Agriculture

ELLANIE SMITWINDHOEKThe Namibia Agriculture Union (NAU) says it continues to support the government’s land reform goals, with 800 farms currently offered for sale.NAU president Piet...

Groundwater map now available online

1 day - 14 October 2021 | Agriculture

ELLANIE SMITWINDHOEKThe third edition of the Hydrogeological Map of Namibia was launched last week by the agriculture ministry.The map comes with six inset maps and...

Red Line ‘politicised by opportunists’

2 days ago - 13 October 2021 | Agriculture

ELLANIE SMITWINDHOEKPolitical opportunists are politicising the status of the Veterinary Cordon Fence in the media and unnecessarily squandering valuable energy and funds to drive their...

XXXXXX XXXXXX XXXXXX XXX XXX XX XX

1 week ago - 08 October 2021 | Agriculture

Dr. Kobus LaubscherIhilictorem. Ra dolupta nihille stiberumque inctus il in rerovid eligniam, te coneste senditat re niscipis delibus eossit que volo officimint eum is dolorestio....

Dryland crop producers prepare for season

1 week ago - 07 October 2021 | Agriculture

ELLANIE SMITWINDHOEKAll eyes on weather forecastsPreparedness is a key factor that farmers must bear in mind when intending to successfully grow rain-fed crops.As the start...

NAU and LPO regional meetings end Friday

1 week ago - 07 October 2021 | Agriculture

STAFF REPORTERThe office of the Namibia Agricultural Union (NAU) has been a hive of activity in preparation for the nationwide regional meetings of the union...

Latest News

Creativity and mental health: Where...

20 hours ago | Health

Kalistu R Mukoroli, PR and brand strategistWe tend to preach about being creative, but isn’t this contributing to mental health issues? Creative people always push...

Soldiers turn to AR over...

20 hours ago | Health

STAFF REPORTER WINDHOEKSoldiers opposed to mandatory Covid-19 vaccinations have struck a defiant tone by...

Taxing the informal sector could...

20 hours ago | Economics

PHILLEPSU UUSIKUGenerally, the informal sector is considered difficult to tax as it is associated with high administration costs.Research papers have shown that attempts to tax...

Learning through play

20 hours ago | Society

Mariselle StofbergStimuBox is an online store that produces and sells personalised sensory boxes. These boxes contain fun and simple, age-appropriate activities that help with the...

Where heart meets experience

20 hours ago | Health

Mariselle StofbergWith her heart of gold, fierce determination to make a difference in the lives of others and ability to persevere, Dominic le Roux continues...

Living his passion every day

20 hours ago | Business

Michelline Nawatises Arne Schmid was born and raised in Windhoek. He completed high school at Deutsche Höhere Privatschule Windhoek (DHPS) and finished his studies...

EDITORIAL: No to forced vaccinations

20 hours ago | Opinion

We must encourage vaccination with every joule of energy we have, but must never force them upon anyone.We are pro-vaccination hardliners, but not to the...

Bahr celebrates 3 decades at...

20 hours ago | Society

Iréne-Mari van der WaltMarinda Bahr recently celebrated her 30th year with the Swakopmund municipality. Bahr’s colleague, Marolese Niemand, says she reported for duty two months...

Motivation to achieve and...

20 hours ago | Motors

Emilie Mandume Dean Gaeb started his education at Outjo Primary School in 2005 and completed his secondary education in 2017 at Outjo Secondary School.Rugby was...

Load More