Although the challenges facing the agricultural industry are vast and involve dozens of specialist categories, brokers and financial advisors can make a huge contribution by empowering newcomers to the industry by passing on valuable information. These include efficient risk management, budgeting, maximizing yield and essential, yet affordable, financial protection, says Andre van der Walt, Head of the Specialist Agricultural Division at Hollard Broker Markets.
“We have the knowledge and experience to help develop upcoming farmers who do not have generations of commercial farming behind them,” says Andre van der Walt, Head of the Specialist Agricultural Division of Hollard Broker Markets, who has 30 years of personal hands on experience in the agricultural arena.
The sky is the limit
“Our country needs all the food we can produce and if we overproduce, we can export with great financial benefit. So the sky is the limit. It is our duty to our country to work together to develop newcomers who have become farmers during the last decade, because all farmers produce food that gives life to our South Africans,” says van der Walt.
He believes all agri specialist intermediaries have invaluable knowledge to pass on. “And I appeal to them to connect with, and mentor new farmers in their area as a service to South Africa. Even if those that we mentor do not represent immediate revenue to us, we can make a big difference by passing on the knowledge we have and they need to succeed.
“Their value to our country, our economy and the future agricultural industry at large is immense and we can help them to become solid and successful producers of food for all over South Africa. You know the risks of the agri categories you specialize in because it’s your business to know. So make a generous gift of that knowledge.”
Knowledge newcomers need to succeed
Van der Walt has compiled a list of the kinds of useful types of information he hopes readers of FAnews will share:
• Discuss tried and proved risk management techniques that work in the specific farming category of the newcomer. Tell true stories from your experience about farmers who mastered risk management and benefited from it and those who did not get it right and the financial consequences. True stories, as opposed to lecturing, are very convincing teaching tools.
• Get permission from a few of your successful farming clients to take the newcomer for a visit and tour. The experienced farmer can point out successful risk management techniques and good general farming practises. Convince your successful clients that they can contribute to success and unity of the agri-industry in this way and that there can never be too much food.
• Involve financial advisors, familiar with farming administration, to work with you to assist with budgeting and making provisions for running costs as well as emergency expenses. Newcomers to the agricultural industry can benefit greatly from practical examples and explanations about how to apply this in day to day farming activities. Successful farmers you take newcomers to visit could also share their practical experience in this area.
• Assist with marketing and setting up distribution channels.
• Your goal is not to sell insurance but to uplift and empower with a long term view.
Relationships make needs clear
“In my personal experience, once a relationship is established with an up and coming farmer, and the desire to help is communicated in an open and friendly way, the needs become clear.”
Van der Walt warns, “Please don’t be intimidated by the mountain we yet have to climb to get the agricultural industry running smoothly. We’re working on that at high levels. Meanwhile, if individual brokers and financial advisors all localize their efforts, taking one step at a time to assist just one or two newcomers to be the best they can be, we will have improved the present and the future for all.”
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