The document discusses the three main skills needed for farm business success: technical knowledge/work, management ability, and business sophistication. It emphasizes that to be successful, a farmer needs to develop skills in all three areas as each one complements the others. However, it is common for new farmers to be lacking in one or more of these skills, which can lead to costly mistakes and losses if not properly addressed. The document provides examples and advice for gaining skills in any areas of weakness.

1. Farm Business Skills
Technical Management
Knowledge/work
you
Business

2. A Natural Farming System for Sustainable
Agriculture in the Tropics
• Today
• Soil Management –
–
Farm tour
Lecture
– Hands on EME
• Microbial Management • Day 2
– Lecture
• 10 Fundamentals –
–
Video
Hands on Bokashi
• Day 3
– Hands on all morning
– Afternoon review
– Exam
– Farm planning
– Marketing
P100.00
P1,000.00
P500.00
P500.00 P500.00
+ =
Book Manual Farm Development CD DVD DVD & CD Set

3. The
Course

4. Farm
Business
Success
Assessing the
3 main skills

5. Farm Business Success
Assessing the 3 main skills
Technical Knowledge/work
Management Ability Business Sophistication

6. Goal: Develop high quality,
nutrient dense food for our
customers.
Don’t chase profits,
Create value and
Profits will follow
A generous man will
prosper; he who refreshes
others will himself be
refreshed.
Proverbs 11:25

8. Honor the LORD with your wealth,
with the first fruits of all your crops;
Proverbs 3:9

9. Do you see a man
skilled in his work? He
will serve before kings;
he will not serve before
obscure men.

10. The Aloha House
SUSTAINABLE
AGRICULTURE
Poor Families
Livelihood
Mother’s
Program
Orphanage

11. The Aloha House
Tribes
Abandoned
Children
Squatter
Camps Fishing
Villages
Where do the
children come from?

12. The Aloha House Experience:
Make a Sanctuary for the Poor
Feed The Neediest, Most Vulnerable
With Nutrient Dense Food

13. Marketing the Farm
School Groups
Inviting the community

14. Marketing the Farm
School Groups
Learn to
Propagate
Microbes
Inviting the community

15. Book available at
Allied Botanical,
Harbest in Mega Mall
Metro Manila

16. Marketing the Farm
Farm Tours

17. Marketing the Farm
Farm Tours
Trained and
Trained Guides
Knowledgeable Guides

18. Brgy Captians

19. Marketing the Farm
Word of mouth
Secretary Montejo D.O.S.T.

20. Righteousness esteemed
over wealth
Proverbs 11:4
Wealth is worthless in the day of
wrath, but righteousness delivers
from death.
Trust in God’s Judgement

21. Idolatry vs. Faith
Proverbs 11:28
Whoever trusts in his riches will
fall, but the righteous will thrive
like a green leaf.
Trust in God’s provision

22. Farm Business Skills
Technical Management
Accurate
Knowledge/work
Does it require
Mastery of maintenance?
Does it work? Time
the information
Supervision
Constant testing
Opportunity cost
Continual learning
Be a walking example
Able to train others
Resource management
Business
Does it offset costs?
Marketing
Knowing costs
Seizing Opportunity
Handling customer complaints
Accounting skills/ record keeping

23. Farm Business Skills
Technical Management
Knowledge/work
success
Business
Hitting the bulls eye for a
successful farm operation is
very unlikely the first year

24. Farm Business Skills
Technical Management
Knowledge/work
you
Business
ignorance

25. Farm Business Skills
Management
1 skill set
Technical
Knowledge/work
Business

26. Farm Business Skills
Business
1 skill set
Technical
Knowledge/work
Management

27. Farm Business Skills
Business
1 skill set
Management
Technical
Knowledge/work

28. Farm Business Skills
Missing Business sense
Costly mistakes
Technical Management
Knowledge/work
Missing farm skills
Not able to manage Business Steep learning curve
Lots of waste
You must GAIN skill or AFFORD to HIRE where you lack

29. Farm Business Strategies for
Success
40 hrs. is a slow week
Slow times are for gaining new
knowledge and skills
Invest in information
•Books
•Trainings
•Consultants
Diversify your product line
Try Value added natural
processing
You need multiple markets to
sell into, not just one buyer

30. Opportunity cost
World record rice harvest
Good Aloha Lettuce crop 200 cavans = 10 tons palay
1m 1m
10m
Income 10m
140 lettuce seedlings = 15 kilo organic lettuce 10 kilo palay = 6 kilo organic rice
15k x P300/k = 4,500.00P/10 sq m 6k x P100/k = 600.00P/10 sq m
140 lettuce seedlings = 10 kilo organic lettuce 4 kilo palay = 2 kilo organic rice
10k x P200/k = 2,000.00P/10 sq m 2k x P45/k = 90.00P/10 sq m
30 days
P2,000,000.00/hectare
90 days 90 days
P6,000,000.00/hectare P90,000.00/hectare

31. Contract growers hoping the chicken industry offers a steady nest egg may instead
be trapped by debt
CAMERON, Texas, Barry Shlachter, Star-Telegram via Crop-Choice.com, posted March 6, 2005: In 1999, a former high school
physics teacher named Susan Martin became one of the country's 30,000 contract growers responsible for the vast majority of
the chicken we eat.
She dreamed of succeeding in agribusiness, working with Sanderson Farms, a large Mississippi poultry processor with more
than $1 billion in annual sales.
But two years later, Martin was losing money and carrying $460,000 in farm debt. Worse, Martin discovered that under the
terms of her contract, she couldn't sue Sanderson, which she accused of misleading her. Nor could she afford the $23,000
cost of binding arbitration as required by the contract to resolve disputes. The American Arbitration Association's Dallas office
rejected Martin's request to have the fees waived.
"It was hell," said Martin, 52, whose husband is a manager in an office furniture factory. She lost her farm near Cameron,
south of Temple, and about $100,000 in equity. "The worst thing was being treated like a dog."
Mike Cockrell, Sanderson's chief financial officer, denied that the company has misled its 150 contract growers in Texas to
whom, he said, it offers some of the most progressive contracts in the industry.
But poultry companies like Sanderson, Tyson and Pilgrim's Pride have increasingly come under criticism for their half-century-
old system of contract growing, through which about 90 percent of U.S. chickens are now produced.
Under contract growing, which has helped keep the supermarket price of chicken low, the poultry companies own the flocks
and supply the feed. Growers, who get a guaranteed price per pound, provide the labor, chicken houses, water, electricity and
gas.
But many small farmers, who commonly borrow $700,000 or more to build chicken houses and subsequently must invest more
to keep up with new technology and competing growers, find themselves deep in hock and unable to make a profit.
Critics like Wes Sims, president of the Waco-based Texas Farmers Union, say that predictions of growers' earnings are
overstated, that they risk being cut off from fresh flocks for refusing costly upgrades demanded by companies, and that their
heavy farm debt ensures that they renew unfair contracts, creating a system akin to modern-day

32. Direct sales poultry vs. Confined Contract Growing
Aloha Pastured Poultry
Magnolia Contract Grower
P5,600/100 pastured chicken P800/100 confined chicken
70 days 35 days growing
Profit 21 days cleaning,
disinfecting, aerating
70 days 56 days
P5,600.00/batch P800.00/batch
365 days 365 days
P30,000.00/year P6,000.00/year

33. 80/20 Rule
A call for balance
Proverbs 30:7-9
Two things I ask of you, O Lord, do not refuse me before I die:
Keep falsehood and lies far from me;
and give me neither poverty nor riches, but give me only my daily bread.
Otherwise, I may have too much and disown you and say, “Who is the Lord?”
Or I may become poor and steal, and so dishonor the name of my God.
Too much or too little?

34. Farm Business Skills
Technical Management
Knowledge/work
you
Business