Practice of Farm Management and Marketing

Choose and plan a small farm project

A good first project is small, quick and safe: salad leaves in pots, a vegetable stall, egg sales, or a seed-saving box. Pick one using three tests: Do we have the skill? Can we get the land, water and tools? Will someone buy it?

Then write a one-page plan: goal, who does what, dates, budget and the place of sale (use the Plan-Do-Check cycle).

Budget: fixed and variable cost

Fixed cost stays the same whatever you sell: stall rent, tools, a licence. Variable cost grows with each kilo: seeds, water, packing.

Total cost = fixed cost + variable cost per kilo × kilos.

Example: fixed 600; variable 12 per kilo. For 100 kg total cost = 600 + 12 × 100 = 1800.

Break-even point

The break-even quantity is where income equals total cost.

Break-even kg = fixed cost ÷ (price − variable cost per kg). Here 600 ÷ (20 − 12) = 75 kg. Below 75 kg we lose; above we profit. A higher price or lower unit cost makes break-even come sooner.

Always ask: can we really sell that many kilos? If not, the project needs a change.

Records and the project report

Keep a daily record: date, work done, money spent, kilos sold, money received, and comments. Take photos.

At the end write a short report: 1) goal, 2) plan and budget, 3) what happened (table of income and costs), 4) profit or loss, 5) what we learned and what we will change. Add a simple bar chart. Share it with your teacher or group.

Key formulas and definitions

• Total cost = fixed cost + (variable cost per kg × kg)
• Break-even kg = fixed cost ÷ (price − variable cost per kg)
• Profit = price × kg − total cost

Worked examples

Common mistakes

• Forgetting fixed costs and thinking profit begins at the first kilo.
• Using price instead of (price − unit cost) in the break-even formula.
• Not checking whether the break-even quantity can really be sold.
• Writing a report without numbers or lessons.