Agricultural Science (AS)·Agricultural economics & extension · NSSCAS 6.2
Farm management & the cash flow statement
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Meme Ndapewa farms cattle and maize near Otjiwarongo and repays an Agribank loan every month. Some seasons she ends with money in the bank; some seasons she runs short in the middle of the year, even though her cattle sell well later. What is the difference between a farm that survives and one that struggles? In this lesson we learn what farm management is, what a manager must do, the challenges she faces, and how to draw up a cash flow statement in Namibian dollars so she is never caught short of cash.
What you'll learn in this lesson
By the end you should be able to (NSSCAS Agricultural Science (AS) 6.2):
- Define farm management as the planning, organising, directing and controlling of the farm's resources to meet its goals and make a profit
- Describe the main responsibilities of a farm manager (planning, record keeping, financial control, staffing and supervision, marketing and decision making) and explain their importance
- Outline how a farm manager recruits and supervises staff
- Evaluate current and future challenges a farm manager may face (drought, prices, labour, disease, capital and markets) and suggest a solution for each
- Explain what a cash flow statement is and how it differs from a balance sheet
- Draw up a cash flow statement, calculating the opening balance, cash inflows, cash outflows and closing balance month by month in N$
- Discuss how decision making, including the repair or replacement of farm machinery, influences the profitability and sustainability of a crop or animal enterprise
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