Smallholder farmers can make it big

Smallholder farmers are usually defined as farmers who own or have access to a small plot of land on which they produce food for their own use and the market.

- Lindie von Maltitz and Dr Yonas Bahta

Commercial farmers are typically those who own or have access to large pieces of land on which they produce crops and livestock for the market – in other words, for commercial purposes. The difference between smallholder and commercial farmers tend to be linked to available land size and annual turnover.

Skills and characteristics

The skills required by commercial farmers are similar to those required by smallholder farmers and include:

• Knowledge and expertise: Commercial farmers must be knowledgeable about and stay informed of all the processes involved in producing their produce. For example, if they produce maize, they must be knowledgeable about soil health and preparation, cultivar choice, seed quality, fertiliser application, planting techniques, harvesting, storage, and marketing.

• Planning and execution: Multiple activities must be planned and executed at the right time. Timing is crucial in farming. For example, planting too late can result in crop failure. If treatment for ticks on cattle is not done at the right time, the disease can cause losses.

• People management: Commercial farmers must manage their employees and promote a good working relationship. They must also know the applicable labour laws and keep a record of necessary labour documentation.

• Risk management: To be sustainable, producers must be able to manage risks and decide their own risk profile. For example, a risk-averse producer should avoid high-risk enterprises. They must incorporate risk in their planning process through typical ‘what if’ scenarios.