jos, nigeria, 31st january 2016 · 2019-05-04 · jos, nigeria, 31st january 2016 farmer business...

[Farmer Business School] 1

Jos, Nigeria, 31st January 2016

Farmer Business School Production system Potato, Maize & Soybean Training notebook and workbook


Farmer Business School

Production system Potato, Maize & Soybean Training notebook and workbook Nigeria

1st Edition 2016


Foreword German International Cooperation (GIZ) and local partners from Ghana, Nigeria, Côte d’Ivoire and Cameroon have developed the Farmer Business School approach for cocoa production systems in 2010. With support of the Ministry for Economic Cooperation and Development (BMZ) of Germany, World Cocoa Foundation, Bill & Melinda Gates Foundation, European Union and NIRSAL, 600 trainers of 40 local partners have trained over 300,000 farmers (27% women) in the four countries.

In Nigeria, over 68,000 cocoa, cotton, rice and tomato producers have graduated from FBS implemented through cooperation between GIZ and the Agricultural Development Programmes of Abia, Cross River, Edo, Ekiti, Kano, Katsina, Niger, Ondo and Osun States. The training is aligned with the Agricultural Transformation Agenda of the Federal Government of Nigeria. It shall contribute to achieve the following objectives:

Productivity and quality increases of smallholder agriculture;

Diversification of smallholdings;

Improved incomes and living conditions of smallholders and their families and

Professionalizing producers and theirs organizations.

The present training notebook is an adaptation of this curriculum to potato production systems in Nigeria. The adaptation work has been done in partnership with the programmes Sustainable Smallholder Agri-Business (SSAB) and Sustainable Economic Development in Nigeria (SEDIN). The adaptation to potato production systems was funded by the European Union through its Instrument contributing to Stability and Peace.

Only FBS-Trainers that underwent a special qualification program including class-room and learning trainings with farmers deliver the

training in line with the principles of adult and discovery learning and the quality standards of FBS.

At the end of the training

Ask for your FBS participation certificate with serial number and

signature of your trainer


Contents Page

1. Farmer Business School: the training ....................................................................... 6

What is FBS about? ........................................................................................................................ 6

Module 1 Farming is a business ................................................................................................ 7

Module 2 Know the units to know your assets ......................................................................... 10

Module 3 Manage your farm for more and better food ................................................................ 13

Module 4 Money-Out, Money-In: Know whether you are doing successful business ................... 19

Module 5 Decisions for more income .......................................................................................... 25

Module 6 Diversify your farm enterprise for more income throughout the year ............................ 33

Module 7 Manage your money throughout the year .................................................................... 36

Module 8 How to get good financial services .............................................................................. 40

Module 9 Earning more Money by Investing in Good Quality Seed ............................................. 45

Module 10 Benefits from membership in farmer organizations .................................................. 48

Module 11 Improving Potato quality and managing pests & diseases ....................................... 52

Module 12 Becoming an entrepreneur in Practice ..................................................................... 58

2. Templates for application ......................................................................................... 59

Plan and evaluate production ........................................................................................................ 59

Evaluate the production year ........................................................................................................ 71

Managing money throughout the year ........................................................................................... 73

Manage loan and reimbursement .................................................................................................. 76


ABC of the Agricultural Business Community

A Agriculture Asset

B Business Bank

C Credit Calculate

D Diversification Debt

E Enterprise Equipment

F Farm Food

G Gain Gross margin

H Harvest Hectare

I Income Investment

J Job

K Kilogram Kilocalorie

L Loss Labor

M Management Market

N Nutrition Negotiation

O Organization Owner

P Plan Profit Productivity

Q Quality Quantity

R Record keeping Rice

S Savings School fees

T Ton Trial

U Unit Union of producers

V Value Variable cost

W Work Warrantage

X EXport crop EXpenditure

Y Yield

Z Zero Zone

Sustainable Smallholder Agri-Business - Farmer Business School Notebook and Workbook 6

1. Farmer Business School: the training What is FBS about?

What are the advantages? The skills learned at the Farmer Business School will allow you to become a better entrepreneur who:

- Takes advantage of improved technologies and market opportunities to increase income

- Plans and adapts his production to assure food security for the family

- Targets decisions and investments in planting of potatoes.

- Leads professional negotiations with buyers, input suppliers, credit institutions and land owners.

- Manages financial means and credit.


Module 1 Farming is a business What examples of businesses do you know? Examples of businesses

Start and end of activities Capital Needs Money Entries

Construction business

One can start when one has a contract with a client

One must respect the conditions of the client

One construction site follows the next

One needs capital for the machines, the materials and the employees

Gives income when the construction is completed

Trading One can start and stop commerce at any time.

One needs capital to buy merchandise and to pay employees

Gives income all year long

Processing of agricultural products cocoa butter, processed cassava

One can start the processing at any time if one has the equipment and primary materials

One stops the processing when the primary material is no longer available.

One needs capital to buy raw material and equipment

Gives income all year long as long as you have raw material

Agriculture My farm is my business

My nursery is my business

One needs to start the agricultural work at the beginning of the season

One cannot stop the field work before the harvest (or the use of the seedlings)

One needs capital for tools, equipment, inputs and paid workers

Gives income once a year

Money is spent every day (« and is not even calculated »)

What do you need and use to produce these (collect examples)? Inputs Tools and

equipment Labour Money Land

Seeds Insecticide Fungicide

Machete, hoe Sprayer

Drying bay

Family work force

Paid workers

Own money Credit

Own Land Rented Land

Share-cropping

Main Lesson: The agricultural entrepreneur (man or woman) plans and organizes him/herself to have inputs, tools, labor and money necessary for the production ready at the right time.


What does one need to know about the market to do good business? The market for agricultural produce The market for inputs and equipment The location of the market

Who needs the product and wants to buy it?

The quality of product that is demanded by the market

The price of the product compared to other markets

The locations of sale

Who sells the inputs and equipment?

The quality of the inputs and equipment

The price of sale of the inputs and equipment

How does the price of agriculture products change? The prices of agriculture products change according to the season of the year

At times of abundance, the prices are lowest.

Prices are highest at times of scarcity for example during the dry season.

The prices of agricultural products change between years.

The price of a product that is needed by more and more people will rise from one year to the next.

The price a product that is produced in greater abundance will fall from one year to the next.

Main Lesson To do successful business, the agricultural entrepreneur (man or woman) informs him/herself on the prices of inputs and products at different markets at different moments. This allows the farmer to plan production and to make decisions on the purchase of inputs and the sale of produce.


Module 1 - Agricultural Calendar to plan the production of maize

The times of work… of the main season are shown by a square of the off-season are shown by a circle

The tasks of the entrepreneur JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Prepare the field

Plough the field

Purchase seeds

Sow

Fertilize

Weed

Apply insecticide

Harvest and Store

Main Lesson For a good yield, the agricultural entrepreneur (man or woman) plans to do the necessary work in the field and apply the inputs at the right time.


Module 2 Know the units to know your assets

Measure and calculate the surface of a field The size or surface area of a field is measured in meters squared or hectares. 1 hectare (ha) is 10,000 meters squared (m2).


Method Length Width Surface Size

Difference/ Measuring tape

Rank

Group 1 Estimation by steps

Measuring tape

in meters

Group 2 Estimation by steps

Cord with knots

Main Lessons 1. Measures of the size of field by using walking-steps are not always

accurate. 2. The agricultural entrepreneur (man or woman) who

underestimates field size risks using too little fertilizer and too little seeds. This can lead to reduced yields.

overestimates field size risks using too much fertilizer and to plant too close together. This can lead to reduced yields and unnecessary spending.

3. Accurate knowledge of the size of the farm is important to plan production, to correctly apply inputs, and to correctly space plants and seeds.

4. The agricultural entrepreneur (man or woman) measures his fields with a measuring tape, a cord with knots or a measure band.

5. A field in the shape of a rectangle or square is easy to measure. On such a field it is easier to sow or plant in lines respecting the correct spacing distances.


Standard Measures and Units Distance Kilometer (km) : 1 km is 1,000 meters (m) :

Length or width of a field Meter (m): 1 m is 100 centimeters (cm).

Surface Area Meter squared (m2) Hectare (ha) : 1 ha is 10,000 m2 1 Acre : 4,000 m2 1 Hectare : 2.5 acres

Yield per Unit Area Yield per hectare : Yield per 2.5 acres e.g. 4,000kg/ha potatoes : 1600kg/acre

Volume Liters (L)

Weight Grams (g) Kilograms (kg) : 1 kg is 1,000 g Ton (T): 1 Ton is 1,000 kg

Time Minutes (min) Hour (h)= 1 hour has 60 minutes Day (D) = 1 day has 24 hours

Agricultural work Man-day (MD): The work of an adult man in one day. Example: Work on one hectare requires 10 Man-days. (10 MD /

ha). The work can be done by 1 man in 10 days or 10 men in 1 day.

It is important to specify the number of hours in a work day.

Main Lessons Units and measures are important for the agricultural entrepreneur (man or woman). They are necessary … To know precisely your assets, your land and labour. To correctly plan production and the quantities of inputs that need to be

purchased in time To apply correct amounts of chemical inputs To know the quantity harvested To correctly evaluate losses or profits To better sell your products.

Measures and units are essential to do good business in agriculture.


Module 3 Manage your farm for more and better food Making money with agriculture is good, but the farm must provide also enough good food for your family. For this reason we want to tackle this issue.

Energy and physical strength to work and

to grow

Physical strength and mental force

Cassava

Yam

Beans

Poultry

Cocoyam

Potato

Groundnut

Meat

Plantain

Maize

Eggs

Fish

Protective food and clean water

Oils give us energy and make the meals

tasty

Fruits give us energy (sugar)

and health

Vegetables give us health and make

meals tasty

Clean drinking water gives us

health

Source: adapted from FAO 2004. Family Nutrition Guide

Main lesson The agricultural entrepreneur (man or woman) knows that each type of food is necessary for a good and balanced nutrition of his/her family.


Food products and their content in energy, protein and fat Food Energy

kcal per kg Fat

Grams per kg Protein

Grams per kg

Rice 3610 10 65

Maize 3530 38 93

Cassava 1490 2 12

Plantain 1350 3 12

Yam 1180 2 15

Potato 930 0 30

Groundnut 5670 450 258

Beans 3330 8 226

Fish (dried) 2550 470 74

Meat 1610 79 195

Eggs 1580 112 120

Fruits (oranges) 450 2 9

Vegetables (carots)

305 0 7

Leaves (cassava)

230 3 30 Adapted from FAO 2004.Family Nutrition Guide; http://www.nutritiondata.com/facts/fats-and-oils/575/2

Explanation: The kilocalorie (Kcal or 1000 calories) is a measure for the energy of a food. The number of kilocalories of one kg of a given food shows you whether the food is rich or poor in energy.

Main lesson The agricultural entrepreneur (man or woman) knows that the different types of food need to be combined to ensure a good nutrition of his/her family.

http://www.nutritiondata.com/facts/fats-and-oils/575/2


How much energy and protein do we need per day?

Main lessons The agricultural entrepreneur (man or woman) knows that the members of his family have different needs of food. Very good food for pregnant and breastfeeding women ensures good health and growth of new children. From the 7th month onward children need good quality meals (without spices!) and breast feeding for good health and growth. Children of a certain age need almost as much food as adult persons.


Nutritional calendar: How do you cover the food needs of your family? Mark a square if the product is sold

Mark a circle if the product is eaten

Mark a triangle in the months you need to buy the product

Indicate by a line _____ how long the product is available from own production

What are the months of high prices and the months of low prices for a food item?

Sell

Eat

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Potato

Fresh cassava

Cocoyam

Sweet Potato

Yam

Plantain

Maize


Sell

Eat

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Soybean

Groundnut

Goat

Fish

Fruits

Vegetables


How to have more and better food? Improving yields Diversify cropping Associate crops Improved varieties Fertilization Mulching to conserve

water

Reduce losses in storage

Manage money to buy food

Raise animals Prepare well Clean water and hygiene

Other possibilities

Produce crops that ripen early or that resist to drought; Harvest water for small irrigation Some families might have the opportunity to establish fish ponds

Source: adapted from FAO 2004.Family Nutrition Guide

Farmer Business School Irish Potato 19

Module 4 Money-Out, Money-In: Know whether you are doing successful business

But before we start, let’s learn how to use a calculator What is a Calculator?

A calculator is a tool you can use to do addition, subtraction, multiplication and division

To put on the calculator

Press the ON/AC To clear a wrong number

Press C – CE

To start a new calculation

Press the ON/AC to clear

Addition (plus)

Example: 5 + 9 = 14

Type

Example: 10 + 20 = 30

Type

Subtraction (take away) Example: 9 - 4 = 5 Type

Example: 100 - 20 = 80 Type

Example: - 20 - 29= - 49

Type


Multiplication (times)

Example: 25 x 12 = 300

Type

Example: 22 x 27 = 594

Type

Division (divide)

Example: 26 / 2 = 13

Type

Example: 123 / 3 = 41

Type

Here are some examples. Try to get the same result. Addition (plus) Subtraction (take away)

100 + 250 350 124 + 24 + 52 200

1035 + 465 + 120 1620

33 - 13 20 175 - 35 140

1243 - 12 1231

Multiplication (times) Division (divide) 33 3 99 75 5 375

12 12 144

200 / 4 50 350 / 7 50

1100 / 8 137,5


Here we will see how to determine if business was good or bad. We will calculate the “money in” and “money out” from different produce. Exercise Sheet 1:

Potato

Steps: - Multiply the quantity with the price in each line. - Sum the money spent (“Money-Out”) on inputs and labor - Multiply the yield by the price of sale (“Money-In”) - Subtract the sum of “Money-Out” from the “Money-In” - Determine if there was a profit or a loss

1 ha of Potato, own local seed Unit Quantity Price (Naira) Total (Naira)

1. Money-Out

Inputs and services

Seed Kg 3,000 70

Fungicides Sachets 15 1,800

Fertilizer

50kg bag 3 6,000

Manure 100kg bag 4 1,800

Herbidices Litres 6 600

Empty bags 50kg bag 140 50

Total cost of inputs and services

Labour Land clearing MD 10 1,000

Ploughing MD 12 1,000

Harrowing MD 12 1,000

Ridging MD 12 1,000

Planting MD 20 1,000

Fertilizing

MD 4 1,000

Weeding MD 20 1,000

Spraying

MD 4 1,000

Harvesting MD 20 1,000

Sorting & storing MD 10 1,000

Total labor needs and costs MD Naira

Total costs (Costs of inputs and services costs of labor) Naira

2. Money-In

Potato Yield x Price of Sale kg 7,000 70

3. Profit or loss? Money-In Money-Out or


Exercise Sheet 2: Maize

Steps: - Multiply the quantity with the price in each line.

- Sum the money spent (“Money-Out”) on inputs and labor

- Multiply the yield by the price of sale (“Money-In”)

- Subtract the sum of “Money-Out” from the “Money-In”

- Determine if there was a profit or a loss

1 ha of Maize local variety without fertilizer

Unit Quantity Price (Naira)

Total (Naira)

1. Money-Out

Inputs and services

Seed Kg 25 140 3,500

Herbicide

litres 5 1,300 6,500

Insecticide litres 3 600 1,800

Total costs of inputs and services 11,800

Labor

Land preparation

MD 18 1,000 18,000

Sowing

MD 6 1,000 6,000

Weeding

MD 8 1,000 8,000

Harvesting

MD 4 1,000 4,000

Storage

MD 2 1,000 2,000

Total labor needs and costs MD 38 Naira 38,000

Total costs (Costs of inputs and services costs of labor) Naira 49,800

2. Money-In

Yield x Price of Sale Kg 1000 100

3. Profit or loss? Money-In Money-Out or --9,800


Exercise Sheet 3: Soybean

Steps: - Multiply the quantity with the price in each line.

- Sum the money spent (“Money-Out”) on inputs and labor

- Multiply the yield by the price of sale (“Money-In”)

- Subtract the sum of “Money-Out” from the “Money-In”

- Determine if there was a profit or a loss

1 ha of Soybean local variety, no fertilizer


Total (Naira)

1. Money-Out

Inputs and services

Seed Kg 90 100 3,500

Seed dressing chemical Sachets 6 100 6,500

Bags 75kg bag 10 100 1,800

Total costs of inputs and services 11,800

Labor

Land clearing

MD 8 1,000 18,000

Plouging /ridging

MD 5 1,000

Planting MD 10 1,000 6,000

Supplying/replanting MD 2 1,000

Weeding

MD 15 1,000 8,000

Harvesting MD 8 1,000 4,000

Threshing MD 7 1,000 2,000

Bagging/storing MD 10 1,000

Total labor needs and costs MD 38 Naira 38,000

Total costs (Costs of inputs and services costs of labor) Naira 49,800

2. Money-In

Yield x Price of Sale Kg 700 100 40,000

3. Profit or loss? Money-In Money-Out or --9,800


Comparing Results Please tell what is good and what is bad business and indicate reasons.

1 ha Potato 1 ha Maize 1 ha Soybean Yield Kg/ha 7,000 1,000 700 1. Money-Out NAIRA/ha 396,800 49,800 75,600 2. Money-In NAIRA/ha 490,000 100,000 70,000 3. Profit or Loss? NAIRA/ha 93,200 50,200 -5,600

or

Good Business

Fairly good Business Bad Business

Main Lessons 1. To know if you are doing successful business with a crop, you need to

know the “Money-In” and “Money-Out” with precision. 2. The agricultural entrepreneur (man or woman) tracks the inputs and labor

used in a field, and calculates the “Money-In” and “Money-Out” 3. From the “Money-In” the entrepreneur subtracts the “Money-Out”. The

result tells him if he made profit or loss. 4. The agricultural entrepreneur (man or woman) makes a profit, if the

“Money-In” is greater than the “Money-Out”. In that case he/she does good business.

5. The agricultural entrepreneur (man or woman) makes a loss, if the “Money-Out” is greater than the “Money-In.” In that case he/she does bad business.

6. You recognize a loss with the minus dash in front of the number: - 7. The good agricultural entrepreneur (man or woman) will abandon this

crop or use a better technique to make a profit. 8. To make sure that he/she will make a profit, the agricultural entrepreneur

calculates “Money-In” and “Money-Out” before production.


Module 5 Decisions for more income How to do better business? In this section we will see the possible improvements and how to make good decisions. We will use our results and do the same calculations for improved techniques. The calculations are explained on page 31.

Module 5 - Exercise 1 Potato local variety (1 ha) Potato improved (1 ha)


Total (Naira) Quantity Price

(Naira) Total

(Naira)

1. Money-Out

Inputs

Seed Kg 3,000 70 210,000 3,000 200

Fungicides Sachets 15 1,800 27,000 15 1,800

Fertilizer 50kg bag 3 6,000 18,000 12 6,000

Manure 100kg bag 4 1,800 7,200 10 1,800

Herbicides Litres 6 600 3,600 6 600

Empty bags 50kg bag 140 50 7,000 240 50

Tractor Services Per activity 0 9,500 0 3 9,500

Cost of Inputs 272,800

Labour

Land clearing MD 10 1,000 10,000 10 1,000

Ploughing MD 12 1,000 12,000 0 1,000

Harrowing MD 12 1,000 12,000 0 1,000

Ridging MD 12 1,000 12,000 0 1,000

Planting MD 20 1,000 20,000 20 1,000

Fertilizing MD 4 1,000 4,000 15 1,000

Weeding MD 20 1,000 20,000 20 1,000

Spraying MD 4 1,000 4,000 4 1,000

Harvesting MD 20 1,000 20,000 35 1,000

Sorting/storing MD 10 1,000 10,000 15 1,000

Labour needs + costs MD 124 - 124,000 119 -

Money-Out (NAIRA)

396,800

2. Money-In

Yield x Price of Sale Kg 7,000 70 490,000 12,000 200

Total Money-In Naira 490,000


3. Profit or Loss or

Money-In Money-Out

93,200

Unit Cost (NAIRA/kg) Money-Out / Yield

-0,31


Module 5 Exercise 2 Maize local variety without Fertilizer (1 ha)

Maize improved variety with Fertilizer (1 ha)

Unit Quantity Price (NAIRA)

Total (NAIRA)

Quantity Price (NAIRA)

Total (NAIRA)

1. Money-Out

Inputs

Seed Kg 25 140 3,500 25 180 4,500

Herbicide Litres 5 1,300 6,500 5 1300 6,500

Insecticides Litres 3 600 1,800 3 600 1,800

Fertilizer 50 kg Bags 0 2,500 0 6 2500 15000


Labour

Land preparation MD 18 1,000 18,000 18 1,000 18,000

Sowing MD 6 1,000 6,000 6 1,000 6,000

Fertilization MD 0 1,000 0 4 1,000 4,000

Weeding MD 8 1,000 8,000 8 1,000 8,000

Harvest MD 4 1,000 4,000 10 1,000 10,000

Storage MD 2 1,000 2,000 10 1,000 10,000

Labour needs and costs MD 38 38,000 56 56,000

Money-Out (NAIRA) 49,800

2. Money-In

Yield x Price of Sale Kg 1000 100 100,000 3,500 100

3. Profit or Loss or Money-In Money-Out

50,200



Module 5 Exercise 3

Soybean local variety without Fertilizer (1 ha)

Soybean improved variety with Fertilizer (1 ha)


Total (NAIRA)

Quantity Price (NAIRA)

Total (NAIRA)

1. Money-Out

Inputs

Seed Kg 90 100 9,000 90 200

Seed dressing chemical Sachets 6 100 600 6 100 1,800

Fertilizer 50 kg Bags 0 2,500 0 6 6,000 15,000

Bags 75kg Bags 10 100 1,000 27 100 2,500


Labour

Land clearing MD 8 1,000 8,000 8 1,000 10,000

Ploughing/ridging MD 5 1,000 5,000 5 1,000 5,000

Planting MD 10 1,000 10,000 10 1,000 10,000

Supplying/replanting MD 2 1,000 2,000 2 1,000

Weeding MD 15 1,000 15,000 15 1,000 15,000


Harvesting MD 8 1,000 8,000 18 1,000 25,000

Threshing MD 7 1,000 7,000 15 1,000 24,000

Bagging/storing MD 10 1,000 10,000 20 1,000

Labour needs and costs MD 65 - 65,000 97 -

Money-Out (NAIRA) 75,600

2. Money-In

Yield x Price of Sale Kg 700 100 70,000 2,000 100

3. Profit or Loss or Money-In Money-Out -5,600



Explanation of Fixed Costs Certain costs are called « fixed costs ». These are costs for equipment and tools that the farmer owns and are used on multiple crops or over multiple years, such as sprayers or irrigation pumps. The Fixed Costs do not vary with the size of the field.

Main Lessons 1. The Difference between Money-In and Money-Out indicates whether we

are making a loss or profit from the use of the land. 2. The Unit Cost of a crop indicates if it can compete on the international

market with the same crop produced elsewhere. In the case of food crops, the Unit Cost indicates if it is better to buy the crop on the market.

3. The good agricultural entrepreneur (man or woman) calculates well ahead of the season to decide what he/she will produce and which techniques to use.

4. During the production season the good agricultural entrepreneur (man or women) registers money spent for farm operations and inputs.

5. After the harvest, the good agricultural entrepreneur evaluates his/her profit and identifies what changes are needed to improve the planning and profit for the next production season.


Module 5 – Solution Exercise 1 Potato local variety (1 ha) Potato improved (1 ha)



(Naira) Total

(Naira)

Inputs

Seed kg 3,000 70 210,000 3,000 250 750,000

Fungicides Sachets 15 1,800 27,000 15 1,800 27,000

Fertilizer 50kg bag 3 6,000 18,000 12 6,000 72,000

Manure 100kg bag 4 1,800 7,200 10 1,800 18,000

Herbicides Litres 6 600 3,600 6 600 3,600

Empty bags 50kg bag 140 50 7,000 240 50 12,000

Tractor Services Per activity 0 28,500 0 3 9,500 28,500

Cost of Inputs 272,800 911,100

Labour

Land clearing MD 10 1,000 10,000 10 1,000 10,000

Ploughing MD 12 1,000 12,000 0 1,000 0

Harrowing MD 12 1,000 12,000 0 1,000 0

Ridging MD 12 1,000 12,000 0 1,000 0

Planting MD 20 1,000 20,000 20 1,000 20,000

Fertilizing MD 4 1,000 4,000 15 1,000 15,000

Weeding MD 20 1,000 20,000 20 1,000 20,000

Spraying MD 4 1,000 4,000 4 1,000 4,000

Harvesting MD 20 1,000 20,000 35 1,000 35,000

Sorting/storing MD 10 1,000 10,000 15 1,000 15,000

Labour needs + costs MD 122

122,000 119 - 119,000

Money-Out (NAIRA)

394,800 1,030,100

2. Money-In

Yield x Price of Sale Kg 7,000 70 490,000 12,000 200 2,400,000

Total Money-In Naira 490,000 2,400,000

3. Profit or Loss or Money-In Money-Out 95,200 1,369,900

Unit Cost (NAIRA/kg) Money-Out / Yield 56 86


Module 5 Solution Exercise 2

Maize local variety without Fertilizer (1 ha)

Maize improved variety with Fertilizer (1 ha)



(Naira) Total

(Naira)

1. Money-Out

Inputs

Seed Kg 25 140 3,500 25 180 4,500

Herbicide Litres 5 1,300 6,500 5 1,300 6,500

Insecticides Litres 3 600 1,800 3 600 1,800



Labour

Land preparation MD 18 1,000 18,000 18 1,000 18,000

Sowing MD 6 1,000 6,000 6 1,000 6,000


Weeding MD 8 1,000 8,000 8 1,000 8,000

Harvest MD 4 1,000 4,000 10 1,000 10,000

Storage MD 2 1,000 2,000 10 1,000 10,000

Labour needs and costs MD 38 38,000 56 56,000

Money-Out (NAIRA) 49,800 82,800

2. Money-In

Yield x Price of Sale Kg 1,000 100 100,000 3,500 100 350,000

3. Profit or Loss or Money-In Money-Out

50,200 267,200

Unit Cost (NAIRA/kg) Money-Out / Yield 49,8 24


Module 5 - Solution Exercise 3 Soybean current practice (1 ha)

Soybean improved practice (1 ha)



(Naira) Total

(Naira)

1. Money-Out

Inputs

Seed Kg 90 100 9,000 90 200 18,000

Seed dressing chemical Sachets 6 100 600 6 100 600


Bags 75kg Bags 10 100 1,000 27 100 2,700


Labour

Land clearing MD 8 1,000 8,000 8 1,000 8,000

Ploughing/ridging MD 5 1,000 5,000 5 1,000 5,000

Planting MD 10 1,000 10,000 10 1,000 10,000

Supplying/ replanting MD 2 1,000 2,000 2 1,000 2,000

Weeding MD 15 1,000 15,000 15 1,000 15,000


Harvesting MD 8 1,000 8,000 18 1,000 18,000

Threshing MD 7 1,000 7,000 15 1,000 15,000

Bagging/storing MD 10 1,000 10,000 20 1,000 20,000

Labour needs and costs MD 65 - 65,000 97 - 97,000

Money-Out (NAIRA) 75,600 154,300

2. Money-In

Yield x Price of Sale Kg 700 100 70,000 2,000 100 200,000

3. Profit or Loss or Money-In Money-Out -5,600 45,700

Unit Cost (NAIRA/kg) Money-Out / Yield 108 77


Module 6 Diversify your farm enterprise for more income throughout the year What crops will you choose? Rank crops based on Profit Make a choice based on this ranking

Unit local variety improved variety Local variety

without Fertilizer Improved

variety with Fertilizer

Local variety without fertilizer

(1 ha)

Improved variety with fertilizer (1 ha)

Surface Area Ha 1 1 1 1 1 1

1. Money-Out Naira / ha 394,800 1,030,100 49,800 82,800 75,600 154,300

2. Money-In Naira / ha 490,000 2,400,000 100,000 350,000 70,000 200,000

3. Profit or Loss? Without risk

or Naira / ha 95,200 1,369,900 50,200 267,200 -5,600 45,700

Rank

3. Profit or Loss? With risk or

Naira / ha 194,800 169,900 50,200 266,200 -5,600 45,700

Rank


What is a risk in agriculture? The agricultural entrepreneur (man or woman) does not like risks because they are difficult to predict. However, one can determine during the planning what the impact of risks could be on revenues. We use an example to learn this.

Market Risks Production Risks The market price of Potato may fall from 70 Naira per kg to 50 Naira per kg (for local variety) and from 200 Naira per kg to 150 Naira per kg (for improved variety)

Outbreak of pests and diseases such as potato blight may reduce the potato yields: - The yield of the local variety falls from

7,000 to 4,000 kg/ha - The yield of the improved variety falls from

12,000 kg/ha to 8,000 kg/ha

Let us determine the impact of these risks on the success of our business with a small calculation. The Money-Out does not change -- the money has already been spent.

Unit Local variety Improved variety

Surface Area Ha 1 1

1. Money-Out Naira 394,800 1,030,100

2. Money-In

Yield (lower) Kg/ha 4,000 8,000

Price (lower) Naira/kg 50 150

Yield x Price of Sale Naira/ha 200,000 1,200,000

3. Profit or Loss? (Money In MINUS Money Out)

or

Naira/ha

Are the two risks acceptable? What can you do to avoid the risk? Register the result in the preceding table to compare the results with the situation without risk.


Main Lessons 1. Comparing profits of different crops and production techniques helps to

make decisions on using the land to maximize revenue. This comparison is important to all agricultural entrepreneurs (man or woman)

2. Production decisions are based on these comparisons. 3. The good agricultural entrepreneur knows that a fluctuation in prices

constitutes a risk on revenue. Risks are a concern for traditional as well as improved varieties and techniques.

4. To evaluate the impacts of this Market Risk, the entrepreneur calculates the Money-in with a much lower price (“pessimistic”) than the current price (or last season’s price). If the “pessimistic” profit can still satisfy the revenue objectives, then the risk is acceptable.


Module 7 Manage your money throughout the year Bad management of money

How does one know if the money is managed badly?

What are the causes?

What must one do to manage money well during the year?

Household expenditure: We have looked at « Money In » and « Money Out » for different crops on the farm. Now we look at household expenditures. Below are the expenditures of a Household of 6 persons (2 children not yet in school, 2 children in primary school). We discuss if we can predict all these expenditures.

Money Needs Money-Out (NAIRA)

Period Can be foreseen

Matches 100 Each month Yes

Salt 200 Each month Yes

Soap 700 Each month Yes

Kerosene 1,000 Each month Yes

Purchase food 23,000 Each month Yes

Sub-total 25,000 Each month Yes

School fees (140 Naira per child)

340 January, April, September

Yes

Clothing 15,000 Once a year Yes

Happy events

Easter

10,000

Once a year

Yes

Yams Festival (august) 10,000 Once a year Yes

Christmas 10,000 Once a year Yes

Provision for unexpected events

5,000 Each month No

Second Step:

Let us put these numbers into a financial calendar. In the next page you will see the numbers calculated in Module 5.

How much money is left at the end of each month?

How much money is left at the end of the year?


Module 7 - Financial Calendar based on a farm using current practices (NAIRA) - Exercise

Money-Out Jan Feb Mar April May June Jul Aug Sept Oct Nov Dec Potato (1 ha)

Inputs 272,800 Labour 22,000 42,000 18,000 10,000 15,000 15,000 Maize (1 ha) Inputs 11,800 Labour 18,000 6,000 4,000 4,000 6,000 Soybean (1 ha) Inputs 10,600 Labour 15,000 17,500 7,500 15,000 10,000

Household 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 School Fees 340 340 340 Happy Events 10,000 10,000 10,000 Clothing 15,000 Provision for unexpected events 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

Total per month

Money-In Jan Feb March April May June July Aug. Sept Oct Nov Dec.

Potato

Maize

Soybean

Total per month

Balance

Cumulative


Module 7 - Financial Calendar based on a farm using improved practices (NAIRA) - Exercise Money-Out Jan Feb March April May June July Aug. Sept Oct Nov Dec. Potato (1 ha)

Inputs 911,100 Labour 10,000 18,000 17,000 24,000 35,000 15,000

Maize (1 ha) Inputs 26,800 Labour 6,000 18,000 6,000 6,000 10,000 10,000

Soybean (1 ha) Inputs 28,650 Labour 7,500 5,000 9,500 6,500 10,000 10,000

Household 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 School Fees 340 340 340 Happy Events 10,000 10,000 10,000 Clothing 15,000 Provision for unexpected events 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

Total per month

Money-In Jan Feb March April May June July Aug. Sept Oct Nov Dec. Potato

Maize

Soybean

Total per month

Balance

Cumulative


Discussion on results Note: In this example all product from the farm is sold! We have not yet deducted what the family eats!

Third Step: Fill out the second financial calendar. The expenditures for Inputs and Labour are those from the Exercise Sheets in Module 5 – using improved practices.

Fourth Step: Discuss the differences and which situation is preferable. What changes are necessary?

Main Lessons 1. In the agricultural enterprise, expenditures (Money Out) for the farm

and the household are made each month, but the revenue (Money In) comes only during the months of harvest or sale of produce. Therefore there are months of the year where the expenditures are greater than the revenues. These months are called “deficit months.”

2. For this reason, the good agricultural entrepreneur (man or woman) makes a financial calendar. He or she plans with the spouse(s) the expenditures for production and household needs.

3. To be able to cover the expenditures in deficit months, the good agricultural entrepreneur saves money from the sales of produce (“surplus months”).

4. Improved techniques may contribute to improve the revenues of the agricultural entrepreneur.

5. The needs for Inputs can be identified with calculations of Gross Margin and the Financial Calendar. This information can be used to make savings in a targeted way or to solicit credit for production.

.


Module 8 How to get good financial services The financial calendars lead to a number of questions...

Savings What is saving? Saving is putting money aside for use in the future. No matter how big or small the money you earn, it is important to put part of your income aside for the future and not to spend all at once. This will help you to be prepared for emergency situations or to make an investment.

Why do we save? Saving money is an integral part of any livelihood. Savings can be used to deal with fluctuations in income, to cope with emergencies, or to pay for large expected and unexpected expenses bill.

The reasons for savings may include investments in business and education but also for family events like weddings, funerals and sickness as well as purchasing private items like TV, refrigerator and motorcycle.

You might also need savings to get a loan.

What are the basic principles for saving money?

Save a portion of your income as soon as it is earned Save regularly, even small amounts Save through planning your expenditures and cut on unnecessary spending Save for investments and education Save for emergencies Save for paying off your debts

The amount you can save depends on the amount of money you have available

Where to save? Do not save at home. Try to save with a formal financial institution. The table tells you why

Advantages Disadvantages

At home

Easy and immediately to

access No charges and fees to be

paid (e.g. for withdrawal)

It may not be safe (can be stolen, can be destroyed)

The money does not earn interest

Having money deposited at home increases the risk of making impulsive expenditures because it is immediately available


With a group (e.g. Association, Cooperative, Savings Group)

Group encourages regular savings

May get access to credit provided by the group

Not always available when needed as saved money might be given to a group member as a loan

At the bank (Commercial Bank / Microfinance Bank

The money is safe (covered by the National Deposit Insurance Scheme)

You will get interest on the money (i.e. you get some little amount for having deposited your money at the bank)

Having savings at the bank might be used as a form of security to help to qualify for a loan from the bank

Having savings deposited at the bank reduces the risk of spending money impulsively because it is not immediately available

A Microfinance Bank may offer adashe service

Not easily and immediately accessible (you may have to travel a long distance, you may have to queue up in the banking hall, you may have to fill-in a withdrawal form)

Time deposits: The money might not be immediately available as you agreed to deposit it for a certain period of time

Savings options at banks Current account is an account for small business people like you. Money put in this account

can be taken out any time during opening hours without telling the bank to be prepared for you coming to take out money. The bank pays no interest on this account, rather charges you fees and commission for the services it has given to you. There is usually a minimum balance (amount) which has always to remain in the account.

Savings accounts are the most common as the timing and amount of deposits and withdrawals are flexible. The bank pays interest on the amount you have deposited there. As owner of a savings account you receive a passbook from the bank into which money put in and money taken out is recorded in writing. There is a minimum balance which is usually higher than for the current account.

Target savings accounts are an alternative form of interest bearing savings that require you to deposit a fixed amount on a regular basis over a pre-determined period of time. Although target savings can be structured in many ways, access to the amount saved often is restricted until the contract is fulfilled. If money is taken out before the time agreed with the bank, a relatively high fee has to be paid. You have to open the account with a higher minimum balance than for current and savings account.

Time deposits require a fixed sum to be deposited for a pre-determined length of time and interest rate. They are not accessible during this period of time, but generally yield a higher interest rate than regular or target savings.

Adashe / daily savings may be offered by Microfinance Banks and allow you to save small amounts on a daily basis at your doorstep. Amounts and dates are recorded in a passbook. You might earn an interest on your savings, and can access the amount at the end of a certain period (typically a month).


Loans What is a loan? A loan is money that is borrowed and must be paid back on time. A loan always comes with cost expressed in interest, additional charges and fees such as processing fee. Interest is always a percentage you pay on the amount borrowed; other charges and fees can also be a fixed amount (lump sum).

When does it make sense to borrow? When you want to invest in your farming business (e.g. investments for inputs, equipment and

land). These investments give you a return that can cover the loan amount including all additional costs (interest, charges and fees).

Personal loans like for medical bills or school fees are not advisable, however, be honest to the loan officer as to the use of the loan and think well ahead how you will be able to repay.

You should NEVER take out a loan for an unnecessary expenditure that overburdens your financial capacity/ability to pay back the loan.

Where can I borrow money? You can borrow money

From a bank (commercial banks, microfinance banks, Bank of Agriculture), either as an individual or an association/group;

From an association/group you are a member of (farmer association, cooperative, rotating credit and savings associations, solidarity group).

How do I qualify to take a loan from a bank? To access a loan, you need to fulfil certain requirements (e.g. maintain a bank account for

several months, be able to provide guarantees, etc.). These requirements can differ from one financial institution to another. Inform yourself in time and plan ahead!

A good bank will analyze your cash flow (i.e. your business and household cash flow) to assess your personal repayment capacity. Make sure that you provide correct information.

What do I need to know when taking a loan from a bank? A loan is costly and has to be paid back with interest and other charges. Be sure that you can

pay back the loan! As a rule of thumb the monthly repayment amount should not exceed one third of your total household income.

Get to know the full amount you have to repay including interest and additional charges and fees.

Get to know the required collateral, security deposit or compulsory savings amount.

Get to know the repayment schedule (instalment amount, frequency, duration, grace period).

Be aware that there are penalties if you do not pay back your loan in time. These penalty charges will further increase the cost of your loan.

Make sure you understand the costs and terms before you sign the loan offer/contract. Ask questions to thoroughly understand the terms and conditions!

Make sure that you get a copy of the loan offer/contract and the repayment schedule when signing.


A good entrepreneurial farmer should always find out the current lending conditions of different banks and understand IF the conditions favour him/ her. The two examples below are for learning purposes and to point out the differences in loan products from one bank to another.

Example 1: Farmer Samuel

Samuel is a potato farmer from Plateau State. He needs 500,000 Naira to buy inputs for his potato farm (0.5 hectares or 5,000 square meters).

Samuel decides to go to an MFB offering loans to smallholder farmers. As part of the requirements he has to open an account and starts to save for 2 months to have the required 10% of the requested amount in savings, i.e. 50,000 Naira, as security deposit. This money stays in the bank until the loan is paid back in full.

The bank agrees to give Samuel the loan at 5% flat interest per month. Various fees are deducted from the loan amount before disbursement: 1,000 Naira for the application form, 5% administration fee, and 1% insurance premium. Eventually, he gets 469,000 Naira (500,000 – 31,000). The bank agrees that he pays back the loan amount of 500,000 Naira after exact 5 months as single end-term payment. During this period interest is paid and amounts to 25,000 Naira per month.

The repayment schedule looks as follows: 1st - 4th month: 25,000 Naira per month 5th month: 525,000 Naira

The 500,000 Naira Samuel borrows is the loan amount (also called principal). It will cost him 156,000 Naira to borrow this money: 125,000 Naira for interest and 31,000 Naira for fees.

Example 2: Farmer Stella Stella is also a potato farmer. Her farm is close to Samuel’s farm. She also seeks a loan to buy inputs for her potato farm (0.5 hectares).

Stella decides to go to the Bank of Agriculture (BOA) since she heard that they offer loans to smallholder farmers at 1% flat interest per month. She applies for a loan of 500,000 Naira. As part of the requirements Stella has to open an account and start saving for 90 days. She has to save 20% of the amount she wants to borrow in order to qualify for the loan. This means that at the end of the 90 days she has to have 100,000 Naira as security deposit in her account. This money stays in the bank until the loan is fully paid back.

After the 90 days have passed, the bank approves the loan and gives Stella the money. The insurance premium (NAIC) of 2.5% of the loan amount is deducted before disbursement, i.e. she gets 500,000 – 12,500 = 487,500 Naira.

The bank agrees that she has to pay back the loan within 8 months with an interest amount of 5,000 Naira per month and a principal repayment of 100,000 Naira per month. The bank also agrees that she does not pay any amount in the first 3 months – this is called grace period. During the grace period interest is calculated but will only be paid as accumulated amount (4 x 5,000 = 20,000 Naira) with the first payment in the 4th month.

The repayment schedule looks as follows:

1st-3rd month: no payment 4th month: 120,000 Naira 5th-8th month: 105,000 Naira per month

The 500,000 Naira Stella borrows is the loan amount (principal). It will cost her 52,500 Naira to borrow: 40,000 Naira for interest and 12,500 Naira for insurance fee.


Main Lessons 1. As a good agricultural entrepreneur (female or male), you should

plan your expenditures and money entries all along the year to avoid shortages of money and unforeseen loans that are expensive.

2. To meet the needs of money in deficit months you should make savings with the surplus money from product sales. It takes discipline to do so.

3. Saving money with a bank which is close by has many advantages (safety, interest, access to loans, less risk of impulsive spending).

4. You should inquire and be able to understand and compare features of different savings products (minimum deposit and balance amount, interest rate, charges, flexibility/ease of access).

5. You should inquire and be able to understand and compare common loan products (duration of banking relationship, collateral, mandatory savings, interest, fees/charges, repayment schedule).

6. You should properly understand the costs and risks of taking a loan before making a final decision.

7. You should know the loan amount you can afford and the repayment schedule which fits your cash flow. The Profit or Loss Calculation in Module 5 and the Financial Calendar in Module 7 are the appropriate tools for this planning. You should only take a loan if you are sure that you can pay back!

8. You should know what documents to receive from the bank, and what they mean.

9. You should stick to the investment purpose of the loan as stated in her/his loan contract.


Module 9 Earning more Money by Investing in Good Quality Seed We have seen that you can make money with farming through good planning, improved techniques, quality inputs and calculations that help us make good decisions. Let us now see the issue of using good quality seed. First, we will quickly determine the seed age and yield of your potato. What generation of seed are you using?

What is the trend in production at different generations of the potato seed?

Pot

ato

tube

r yie

ld (t

/ha)

Generation Age of potato seed Yield data from: Schulte-et al. (2013)

What is good quality of potato seed? The biological quality of good potato seed refers to two interrelated factors:

the age of seed tubers (generation) the level of disease infection

It is well known that seed tubers planted continuously for several years will show degeneration. The degeneration is caused by viruses and virus-like organisms. They can be accumulated in tubers, and lead to degeneration of the potato. Infections will retard plant growth and reduce tuber yield. Apart from viruses, fungal and bacterial pathogens in the tubers are also limiting factors for seed quality. The commercial quality relates to uniformity, size of tubers and external appearance. For normal production, a reasonable size of seed tuber should be about 40 to 50 grams. Big tubers will increase cost and tubers that are too small can rot before emergence. What are the possibilities to get quality seed?

Self production: Raise your own new generation seeds

Purchase: Buy new generation seed from reputable seed producers

Variety 1

Variety 2


How to succeed with self-production of new generation potato seed 1. Choice of good plot with well drained loamy soil texture, good pH and fertility, and disease-

free. 2. Prepare the field by ploughing, harrowing and ridging. 3. Source good quality seed from your farm, other farmers or reputable seed producers 4. Plant the seed by strictly observing the recommended good agricultural practices. 5. Look out for pests and diseases, and combat them with the recommended control

measures. 6. Harvest the seed when they are properly matured under clear sunny weather

condition and avoid harvesting when soil is wet 7. Sort diseases-free egg-sized tubers with at least 4-6 'eyes' and keep for seed. 8. To control mealy bug and potato mould, dip seed into diluted quantity of Actellic E.C or

Ridomil. 9. Store in diffused light store to keep them fresh

Purchase of new generation seed from reputable producers 1. Source for money to purchase quality seed on time; 2. Source for providers of quality potato seed; 3. Purchase your quality potato seed; 4. Transport seed; 5. Store your seed in diffused light store; 6. Treat your seed with recommended chemicals before planting

Succeed with planting of seeds 1. Observe the optimum planting periods 2. Ensure that sprouts are of uniform size (maximum of about 2 cm or 1 inch), to produce uniform

growth, and make it easier to manage pests and diseases. 3. Look out for strong sprouts with bluish colored bases 4. Place seeds with their sprouts facing upwards at the planting points 5. Respect planting distance

o 25 cm plant to plant and 75 cm row to row spacing

or

You need 2,133 kg or 21 100kg-bags of small-sized seeds for 1 ha

o 30 cm plant to plant x 70 cm row to raw spacing.

You need 3,200 kg or 32 100kg-bags of medium-sized seeds for 1 ha.


Main lessons

1. The good entrepreneur (man or woman) knows that the older the potato seed the more yields will drop.

2. The Agricultural entrepreneur (man or woman) prepares for using new seeds 3. The good agricultural entrepreneur (man or woman) uses only registered potato seeds of improved varieties.


Module 10 Benefits from membership in farmer organizations - What is the use of being in a farmer organization? - What are the problems and risks of an organization that you know? - How do you avoid these problems? - What is your conclusion?

How can one know if a farmer organization works well?

Existence of the group

- Members pay of annual contributions without pressure - Members accept the costs (deductions on sales) without complaining

Operation of the group

- Existence of Rules - Existence of rules on the control of accounts - Regular Report Production - The evolution of group activities (tonnage production, sales volumes of expenditure

group purchasing of inputs) is positive

In the next section we will look at the advantages of being a member of a farmer organization.


Module 10 Exercise Sheet Group sales Let’s calculate the additional profits obtained through group sales – in the case of improved farm production

Improved variety Improved variety with Fertilizer Improved variety with Fertilizer Unit Individual Sale Group Sale Individual Sale Group Sale Individual Sale Group Sale Surface Area Ha 1 1 1 1 1 1

1. Money-Out NAIRA 1,030,100 1,030,100 82,800 82,800 154,300 154,300

Production Kg 12,000 12,000 3,500 3,500 2,000 2,000

Price NAIRA/kg 200 220 100 110 100 110

2. Money-In NAIRA 2,400,000 350,000 200,000

3. Profit of group sales NAIRA 0 0 0

Total Benefit of group sales NAIRA


Module 10: Exercise Sheet Calculation of the profit of group purchase of Inputs – in the case of Improved farming techniques Inputs can be provided less 10% less expensive through grouped purchase

Improved variety Improved variety with Fertilizer Improved variety with Fertilizer

Unit Individual input purchase

Group input purchase

Individual input purchase

Group input purchase

Individual input purchase

Group input purchase (less

10% Surface Area Ha 1 1 1 1 1 1

Cost of Inputs & Services NAIRA 911,100 819,990 26,800 24,120 57,300 51,570

Profit of group purchase NAIRA 0 0 0

Total Benefit of group purchase of inputs NAIRA


What lessons can you learn from these examples?

Main Lessons 1. Agricultural entrepreneurs (men or women) form groups or associations

to do things they are not able to do alone. 2. Groups or associations of agricultural entrepreneurs (men or women)

have a common business objective. To achieve their common goal, the members learn together, from each other and support each other.

3. For service providers, it is easier and cheaper to work with farmer groups or associations than with individuals. A group of agricultural entrepreneurs (men or women) can more easily seek financial services or information on production techniques from extension.

4. For input suppliers, it is easier and cheaper to work with farmer groups or associations than with individuals. A group of agricultural entrepreneurs (men or women) can organize grouped purchases of agricultural inputs and can better prices from the input supplier.

5. For buyers of agricultural products, it is easier and cheaper to work with farmer groups or associations than with individuals. A group of agricultural entrepreneurs (men or women) can organize grouped sales of agricultural products like potato. The group can get better prices from the buyer – if the quality of the product is correct.

6. Associations or groups of agricultural entrepreneurs that function well have clear rules that are respected. When the rules are broken by members, sanctions are applied.

7. Good leaders of farmer associations play their role to improve the business of all members.

8. Agricultural entrepreneurs (men or women) that are members of well-functioning associations or groups do better business.

9. Agricultural Entrepreneurs that are doing better business with the support of their association pay their membership fees without reluctance.


Module 11 Improving Potato quality and managing pests & diseases

What is potato of good quality?

Pests and diseases make your yields and Money-In drop Learn how to monitor and combat pests and diseases Defects on potato quality?

Causes? How to avoid these defects?

Feeding marks on tubers Rodents Use traps

Tuber greening Changes in temperature, light and other weather factors

Avoid exposure of tubers to light

Long tubers and bottle necks

Grow under ambient environment

Cracked tubers Grow under ambient environment

Small-sized tubers Lack of sorting Grade properly

Sprouted tubers Inappropriate wood drying

Store only moisture free tubers

Black pit Bruising at harvest Avoid mechanical damage

Hollow tuber Termites Good sanitation in field and store

Tuber with growth cracks Stoney or gravelly soils

Use loamy soils

Bruised tubers Poor harvesting and handling

Avoid mechanical injury

Pesticide residues Wrong use of pesticides

Follow instructions for good use

Debris in bags of potato Lack of proper cleaning

Proper cleaning

Overall, routine monitoring and record keeping of results is recommended across board.


Most common potato pests and diseases

Late blight

Favorable environment / source / spread

Severe infections occur at times of high rainfall, high humidity and low temperatures, other sources are air, soil, water, seed and remnants of infected plants. It spreads very rapidly via air, soil, water and seed. The white powder on the surface of affected leaves can be carried by the wind and spread the disease to other plants.

Symptoms

It regularly causes crop failure, infecting plants from the tuber initiation stage up until harvest, damages leaves, stems and tubers, affected leaves appear blistered as if scalded by hot water and eventually rot and dry out, dry out leaves turn brown or black in colour, when infections are still active, spots appear on the undersides of leaves blanketed in what looks like flour. Affected stems begin to blacken from their tips, and eventually dry out. Severe infections cause all foliage to rot, dry out and fall to the ground and plants die. Affected tubers display dry brown-coloured spots on their skins and flesh. This disease acts very quickly. If it is not controlled, infected plants will die within two or three days.

Control

Farmers rely solely on intensive use of fungicides for controlling the disease, but this is mostly ineffective.

Key practices in late blight management are:

the use of resistant varieties (if available),

routine observations and developing management techniques based on these observations.

Observation of the disease must be intensive, beginning when plants emerge from the ground. It is best to make observations in the morning once every two days,


Late blight

looking especially at active spots.


Early blight


Early blight caused by the fungus Alternariasolaniis found in all potato producing areas. It is not as important as late blight, because it rarely causes severe damage or crop failure. Sources of infection are contaminated seed and plant remnants, disease is also spread via wind, water and soil.

Symptoms Affects old leaves and causes dry brown spots usually bound by the leaves’ ribs. It first becomes apparent during the tuber bulking stage and develops leading up to harvest.

Control Remove sources of infection

Use healthy seed, destroy contaminated plants

Use crop rotation

Apply good irrigation systems to prevent the disease spreading through water

Balanced use of fertilizer to produce healthy plants more resistant to infection from this disease

Cut back stems at 80 days after planting to prevent the disease spreading to tubers.


Bacterial wilt


On potato crops, bacterial wilt originates from soil (bacterial wilt can survive in soil without a host for several seasons), water, seed tubers, rogue potato plants or other crop or weed plants that can host bacterial wilt and potato plant remnants.

The disease can spread from field to field or from plant to plant in one field via: Infected seed, air, water, soil, farming tools, livestock and people.

The disease will spread rapidly in the warmer temperatures in storage areas, and infected seed are also a source of the disease in the field.

Symptoms Wilt starts from the tips of the leaves or where the stems branch out, and then spread to all parts of the plant. Leaves become yellow at their bases, then the whole plant wilts and dies. When stems are cut a brown coloured ring will be visible.

Infected tubers will not show any outward signs of disease. When a tuber is cut in half black or brown rings will be visible. If left for a while squeezed rings will exude a thick white fluid. A further symptom is fluid coming out of tuber eyes. This can be signified by soil sticking to tuber eyes when crops are harvested. Serious infection causes tubers to rot.

Control Do not store tubers infected with bacterial wilt or use them for seed.

Remove sources of disease from the field by: planting potatoes in soils free from bacterial wilt.

Use healthy seed not infected with bacterial wilt,

Rotate potato crops with other non-solanaceous crops. In fields with serious infections, it is best to plant non-host plants for more than 2 years, as agents of bacterial wilt can survive in the ground without host for that amount of time,

Remove infected plant debris before planting

Clear weeds away before planting, while plants are growing and at harvesting time,

Use composted organic fertilizer not infected with bacterial wilt,

On heavily infested soils, apply brassica residue based biofumigants, inhibit the development and spread of bacterial wilt in the field by putting dolomitic lime on the soil around infected plants as this increases soil pH, creating a less favorable environment for the pathogen,

Carefully manage irrigation in the field by digging channels that allow water to flow freely from the field and use water not infested with bacterial wilt to irrigate the crop,

Clean the field by destroying (burning or burying) plants and tubers infected with bacterial wilt, throughout the whole season,

Clean farming tools after use


Fusarium wilt


Cause by the fungus Fusariumspp, sources of disease are contaminated soil and other infected tubers, itspreads via soil, wind or water.

Symptoms Affects potatoes in field and in storage. Affected plants display spots and yellowing of leaves. It is more of a problem when it infects tubers in storage. They become dry and hollow, and concentric circles appear on their skins.

Control It can be better managed in storage where infection is more damaging than it is in field.

Control is more effective by sorting and destroying infected tubers.

Why all these problems? Who can change this? The farmer does not apply the appropriate techniques

The farmer!


Module 12 Becoming an entrepreneur in Practice The work templates has been presented to you in this session.

- What have you learned? - What will you change? - After this training what will you do to become an agricultural entrepreneur in

practice? - What do you need to succeed and do good business?

Ask for your FBS participation certificate with serial number and

signature of your trainer

Use the following templates to Plan production Record Money-Out and Money-In Calculate whether you make Profit or Loss Plan expenditure and income from sales and Control the reimbursement of loans


2. Templates for application Plan and evaluate production Cropping calendar for plot 1

Size of the Plot (field)

Main Crop Variety

Associated mixed crop 1

Associated mixed crop 2

Work Planned Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec


Profit or Loss plot 1 Expected before production Evaluation after harvest

Plot area : _______ Unit Quantity Price (NGN)

Total (NGN)

Quantity Price (NGN)

Total (NGN)

1. Money-Out

Inputs

15.000

15.000

15.000

9.000

Total cost of inputs 96.000

Labour (Man-Days)

M/D 46.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 8.000

M/D 5.000

M/D 5.000

Total Labour needs and costs M/D 74.000

Total Money-Out Costs of inputs + Cost of Labour NGN

2. Money-In Production X sales price NGN

3. Profit or Loss? Money-In MINUS Money-Out NGN

4. Unit Cost (NGN/kg) Money-Out / Production NGN/kg


Tracking Money-Out for plot 1 Date Reason Amount « money out »

Total


Tracking Money-In for plot 1 Date Reason Amount « money in »

Total


Plot 2 Cropping calendar for plot 2 Size of the Plot (field)

Main Crop Variety

Associated crop 1

Associated crop 2





Total (NGN)


Total (NGN)

1. Money Out

Inputs

15.000

15.000

15.000

9.000

Total cost of Inputs 96.000

Labour (Man-Days)

M/D 46.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 8.000

M/D 5.000

M/D 5.000







Tracking Money-Out for plot 2 Date Reason Amount « Money Out »

Total


Tracking Money-In for plot 2 Date Reason Amount « Money In »

Total


Plot 3 Cropping calendar for plot 3 Size of the Plot (field)

Main Crop Variety

Associated crop 1

Associated crop 2





Total (NGN)


Total (NGN)

1. Money Out

Inputs

15.000

15.000

15.000

9.000

Total Cost of Inputs 96.000

Labour (Man-Days)

M/D 46.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 8.000

M/D 5.000

M/D 5.000







Tracking Money-Out for plot 3 Date Reason Amount « Money Out »

Total


Tracking Money-In for plot 3 Date Reason Amount « Money In »

Total


Evaluate the production year

Plot number

Main Crop Area Money-Out Production Unit Sales Price per unit Money-In

Profit or Loss

or

1

2 3

Total


Plot 1 Plot 2 Plot 3 Plot 4 Plot 5

Main crop

Am I satisfied with the results of the year?

or or or or or What is the most important change to make for the next year?

What purpose has this change?

How will I make this change? How much will it cost?

How much money can I raise?

Do I need credit?


Managing money throughout the year Planning of household expenditure Financial Needs Expenditures (NGN) When Matches Monthly

Salt Monthly

Soap Monthly

Petrol Monthly

Food Monthly

Water Monthly

Sub-total Monthly

School fees Once per year

Clothing Once per year

Financial Needs Expenditures (NGN) When Happy Events

Christmas December

Easter March/April

Reserves for unforeseen expenditures

Monthly


My Financial Calendar for Planning Money-Out

Crop Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Inputs Labour Inputs Labour Inputs Labour Inputs Labour Inputs Labour Inputs Labour Equipment and tools

Household

School fees

Happy Events

Clothing

Total Money-Out per month


Money-In Crop Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Other revenues

Total Money-In per month

Monthly balance Money In – Money Out

Cumulative Balance


Manage loan and reimbursement Purpose of loan

Interest Rate

Date of loan

Final Reimbursement date

Amount received

Amount to reimburse

Date Amount reimbursed



The partners The Federal Ministry for Economic Cooperation and Development (BMZ) of Germany wants to make a significant contribution to the reduction of poverty and hunger with its special initiative "ONE WORLD No Hunger" (SEWOH). The Global Programme Innovation Centers for the Agriculture and Food Sector is part of this initiative including the country module Nigeria as one of 13 country modules.

The Federal Ministry of Agriculture and Rural Development (FMARD) is the lead implementing agency of the Nigeria Country module Green Innovation Centres for the Agriculture and Food Sector.The Nigeria Country module has the following objective: Innovations in smallholder farm businesses and up- and downstream agribusinesses in selected rural regions have improved income for smallholder farming enterprises, employment and regional food supply. The maize, rice, cassava and Irish potato value chains (VC) have been selected for their market and innovation potential. The target group comprises 600,000 agricultural smallholders (30% women, 20% youth; 400,000 shall be reached with innovative IT-supported media), their associations, trading and processing enterprises. The intervention areas are (A) VC Partnership & Knowledge Platforms for innovation management and skills development involving VC actors & service providers, (B) Training of service providers on cost-effective dissemination of innovations and rolling-out trainings for VC enterprises and (C) Scaling-up of inclusive business models including an innovation fund. Innovative media and IT solutions will be used in all intervention areas. Particularly area (B) shall be implemented in connection with the Growth Enhancement Support Scheme of ATA. The strategy is aligned with ATA and complements Programs of German Development Cooperation in Nigeria (incl. Competitive African Rice Initiative, Sustainable Economic Development in Nigeria, Sustainable Smallholder Agri-Business). GIZ and AFC Consultants Int. implement the Nigeria Country module.

The project ‘E Deepening conomic Development for Peace and Stability in Plateau State’ is closely linked to and implemented together with the GIZ-SEDIN Programme which has been operating in Plateau since April 2011 and a predecessor programme since 2009, both promoting micro, small, and medium enterprises (MSMEs). Both are implemented jointly by GIZ. Due to this linkage, it is possible to have synergy and leverage effects of implemented activities. The project is funded through the ‘Instrument for Stability (IfS)’ fund by the European Union.



Published by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Registered offices

Bonn and Eschborn, Germany

Dag-Hammarskjöld-Weg 1-5, 65760 Eschborn, Germany

Green Innovation Centres for the Agriculture and Food Sector - Nigeria (PN 14.0967.1-004.00)

Authors C. Pannhausen, S. Yusuf Dimlong, A. Matthess, J. Akpoko, Sylvie Hoster

Layout A. Matthess

Illustration P. Ebode, Cameroon

As at February 2016

GIZ is responsible for the content of this publication

Contacts in Nigeria

GIZ – SEDIN

22, Haile Selassie Street, Asokoro, Abuja, Nigeria

Phone: +234 (0)7044369589, +234 8113935343

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH 22 Haile Selassie Street Asokoro Abuja / NIGERIA T +234 7044369589 E [email protected] I www.sedin-nigeria.net

jos, nigeria, 31st january 2016 · 2019-05-04 · jos, nigeria, 31st january 2016 farmer business...

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