maize farming business plan in south africa pdf

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Starting Maize Farming Business in South Africa – Business Plan (PDF, Word & Excel)

Posted by BizBolts | Agriculture , All Articles , Business Plans , Crop Farming

Maize farming, often regarded as the heartbeat of the South Africa’s agriculture industry, presents an alluring prospect for those seeking a robust and rewarding business venture. With a rich heritage deeply rooted in maize consumption and production, South Africa offers a nurturing environment for the maize farming business. Maize holds a prominent place in the nation’s culinary and cultural heritage. As a staple food that graces countless dinner tables, its demand remains steadfast year after year. Maize is the most used feed grain in South Africa and staple food for the majority of South Africans. This steady demand, coupled with the nation’s diverse climatic zones and government support for the agricultural sector, forms the bedrock of the maize farming industry’s potential. Furthermore, the ability to contribute to local food security, explore export opportunities, and adapt to sustainable practices makes maize farming not only a financially lucrative endeavor but also a rewarding one, aligning perfectly with the broader goal of promoting agricultural sustainability and prosperity in South Africa. This article will outline how to start the maize farming business in South Africa, and the maize farming business plan – PDF, Word & Excel.

Before you start the maize farming business, there are some important decisions which you have to make. You have to decide on the size of your maize production business ie how many hectares of maize you will farm.  There are many different maize varieties/cultivars, so you have to select which one you will farm, the season you are going to carry out your maize farming, and your target market. The size of your maize farming business will depend on the size of land you have, the amount of capital you have, and your target market. It’s important that you have a good maize production business plan before you venture into this business.

Market Research

Market research is a crucial initial step when embarking on the journey of starting a maize farming business in South Africa. To ensure the success and sustainability of your venture, it’s essential to gain a deep understanding of the market landscape. Firstly, identifying your target market is vital. Determine whether you plan to cater to local consumers, regional markets, or even international export markets, and define your target audience clearly. Furthermore, market research should encompass pricing strategies, regulatory compliance, and staying attuned to market trends and innovations. By calculating production costs and aligning your pricing strategy with market prices, you can estimate potential profits. Part of your market research should involve a comprehensive understanding of maize pricing dynamics within your target market. This includes identifying the prevailing market prices for maize and its related products, determining the factors influencing price fluctuations, and recognizing the seasonality of maize prices. Equally important is identifying your potential customer base and their buying behaviors. By delving into these aspects, you can strategically position your maize farming business, set competitive prices, and plan your production and marketing strategies to capitalize on favorable price trends and consumer demand fluctuations throughout the year

Land for Maize Farming Business

Land is a primary requirement and must be suitable for maize farming. To be profitable in the maize farming business, you should harvest as much yield as possible, and the type of soil on your maize farming has an impact on the yield. When it comes to maize farming, soil fertility is of utmost importance. The use of decayed leaves, compost or animal manure as organic matter is highly recommended to increase the soil fertility.  The soil should have good drainage, and should not contain toxic materials. The soil should also have good water holding capacities. Maize can grow on a wide array of soil textures depending on the type of maize. pH of the soil for maize farming should be between 6-7.

Machinery & Equipment for Maize Production Business

You will need different kinds of machinery and equipment for your maize farming business. Land preparation is essential before you plant maize, and that requires different types of machinery and equipment. Subsistence maize farmers can prepare the land with hand held equipment and animal drawn equipment since their lands are small. However for commercial maize farming businesses, there is need for machinery and equipment such as tractors, fertiliser spreaders, combine harvesters, irrigation equipment. It will cheap to hire the equipment as an and when you need it, instead of buying.

Maize farming can be done with or without irrigation. If you are using irrigation, you will need power for the irrigation system. You can incorporate the use of electricity powered pumps, solar or fuel powered pumps. Higher level of mechanisation in your maize farming operations will lead to higher efficiency hence higher profitability. Your maize farming business plan should cater for the costs of purchasing or hiring machinery and equipment.

Maize Farming Inputs

You will require maize seeds to start maize farming in South Africa. Ensure that you buy quality maize seeds from certified and reputable suppliers. Poor quality maize seed will lead to low yields and poor quality of the harvested maize. The popular suppliers of maize seeds in South Africa include Pioneer Seeds, Monsanto, Pannar Seeds and Sensako. You can plant white or yellow maize as they are both in demand in South Africa.

The other important input in maize farming are fertilisers. Fertilisers increase the fertility of the soil thus supporting the growth of the maize.  Maize requires a variety of essential nutrients for it to grow to its full potential. These nutrients include nitrogen, phosphorous and potassium. These nutrients should be provided via fertilisers and manure to promote growth of the maize crops.  Weed control is also essential during maize farming, and this is done by applying herbicides.  Fungicides and insecticides are essential  for protection of your plants against insects and fungi. The costs of acquiring all these inputs should be included in your maize farming budgets.

Pests, Weeds & Disease Control

Managing pests, weeds, and diseases is an integral aspect of successful maize farming. Pests such as aphids, cutworms, and maize borers can devastate a maize crop if not properly controlled. Employing integrated pest management (IPM) practices is a recommended approach. IPM involves a combination of preventive measures, such as selecting maize varieties with natural pest resistance, and targeted interventions like the judicious use of pesticides when necessary. Regular field monitoring is essential to detect pest infestations early, enabling timely and effective responses to protect your maize crop. In addition to pest management, weed control is equally critical. Weeds compete with maize plants for essential resources like nutrients, water, and sunlight, which can lead to reduced yields. Effective weed management includes practices like proper land preparation, the use of pre-plant herbicides, and post-emergence weeding techniques. Employing herbicides as part of your weed management strategy, both before planting and post-emergence, can help keep weed populations in check. Additionally, the use of fungicides is pivotal in preventing and controlling diseases like maize rust and leaf blight. Furthermore, diseases like maize rust and leaf blight can pose significant threats. Disease-resistant maize varieties and sanitation practices, such as removing and destroying infected plants, are crucial components of disease control. By giving due emphasis to the responsible application of pesticides, fungicides, and herbicides, you can fortify your maize farming efforts and ensure the health and productivity of your crop.

Labour for Maize Farming Business

When doing maize farming business, you will need to hire part time farm workers as and when necessary. Part-time labourers will be required because there’s a lot of seasonal work to be done. Some of the activities will include land preparation, seed planting, applying fertilisers and manure, ploughing, harvesting, amongst several others. The part time farm workers should be paid according to the number of days worked so as to cut costs.  You also require supervisors, farm manager, finance & accounting staff, and logistics staff depending on the scale of your maize farming business. The wages and salaries of your workers should be included in your maize farming business plan.

Maize Farming Business Model

In the maize farming business model, the process begins with securing suitable land for cultivation. Once you have your land, you plant maize seeds, initiating the growth cycle. Throughout the growth period, you must provide essential inputs, including regular watering, fertilizers to enrich soil nutrients, and pesticides to protect against pests and diseases. Additionally, labor costs are incurred for tasks such as planting, maintenance, and eventual harvesting. It’s essential to note that the specific timeline for harvesting typically falls between 4 to 6 months after planting. The potential for profit in maize farming lies in the substantial yield, which can range from 5 to 15 tonnes per hectare. This yield varies depending on factors like the chosen production system, the quality of inputs used, and the maize variety cultivated. The revenue from selling the maize surpasses the initial inputs, production costs, and operational expenses, resulting in good profits. The business model underscores the importance of efficient planning, diligent execution, and market-savvy strategies to maximize your returns in the maize farming business.

The market for maize in South Africa is very huge and is ever increasing. The local demand for maize is about 10 million tonnes per year. South Africa also exports excess maize to other African countries. Maize has a variety of uses in South Africa. It’s consumed green maize. It is also milled to produce maize meal which is used in meals in South Africa. It can also be used to make maize oil which is used in cooking. Cereal can also be made using maize. Maize also has a variety of industrial uses, including in  paper coating and sizing, soap, adhesives, rust proofing for metal surfaces, inks, paint, textiles, , salve and insecticides. Maize is also used to make livestock and poultry feeds, especially yellow maize . You can supply your maize to individuals, maize millers, animal feed producers, traders, food processors, organisations and industrial companies. Your maize business plan ought to include a proper market analysis and marketing plan to use in your maize farming business.

Keys to Profitability in Maize Farming Business

Achieving profitability in your maize farming business in South Africa hinges on a multifaceted approach that encompasses several key factors. First and foremost, it’s crucial to invest in high-quality inputs and adopt sound agronomic practices. This includes using top-notch seeds, fertilizers, and pest control methods, while also implementing efficient planting, irrigation, and soil management techniques. Such measures are essential in optimizing crop health and yield, setting the stage for financial success.

Selecting the right maize varieties is another pivotal aspect. By choosing varieties that align with your region’s specific conditions and meet market demands, you can enhance your chances of success. Diversification and risk management also play a vital role, as planting multiple crops alongside maize can help mitigate potential losses due to weather or market fluctuations. Additionally, maintaining a market-oriented approach is essential. Staying abreast of market trends and consumer preferences, diversifying revenue streams, and controlling costs are integral elements that enable you to tailor your production to market demands.

Effective post-harvest handling practices, budgeting, financial management, and networking with industry stakeholders are all crucial components of a successful maize farming business model. Furthermore, a commitment to continuous learning and adaptation to new farming techniques and technologies will keep your venture competitive and resilient. By incorporating these strategies and approaches, you can unlock the full potential of your maize farming venture in South Africa, positioning it for profitability and long-term sustainability.

Advantages of Maize Farming Business in South Africa

Starting a maize farming business in South Africa comes with a plethora of advantages that make it an appealing venture for both seasoned farmers and newcomers to the agricultural sector. One of the foremost benefits is the steady demand and market stability of maize in the country. As a staple food, maize enjoys unwavering popularity, ensuring a reliable customer base for farmers. South Africa’s well-established maize industry further reinforces market stability, reducing the risk of unpredictable price fluctuations.

The geographical diversity of South Africa’s climatic zones is another advantage that maize farmers can leverage. This diversity enables maize cultivation throughout the year in different regions, allowing farmers to adapt their planting and harvesting times to local conditions. Moreover, the country’s varied climatic zones help mitigate the impact of adverse weather events, enhancing the resilience of maize farming.

Maize farming in South Africa offers opportunities for expansion beyond domestic borders. The country has the potential to export maize and its products to neighboring nations and international markets, providing farmers with additional revenue streams. Furthermore, the government’s support for the agricultural sector through subsidies, grants, and technical assistance plays a crucial role in reducing the financial burden on maize farmers and encourages the adoption of sustainable farming practices. Overall, a maize farming business in South Africa not only promises a stable income but also contributes to local food security, making it a well-rounded and advantageous venture within the agricultural landscape.

PRE-WRITTEN MAIZE FARMING BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

For an in-depth analysis of the maize farming business in South Africa, purchase our maize farming business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the maize production business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a maize production business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the maize production business plan will lay out all the costs involved in setting up and running the maize farming business. The business plan is designed specifically for the South African market.

USES OF THE MAIZE PRODUCTION BUSINESS PLAN (PDF, WORD AND EXCEL)

The maize production business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your maize farming business
• As a maize farming project proposal
• Assessing profitability of the maize farming business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE MAIZE FARMING BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

• Market Analysis
• Industry Analysis
• 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
• Marketing Strategy
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Maize farming guide (Technical Details of how to plant, grow and harvest the maize)
• Operational Strategy
• Why some South Africans in the maize production business fail, so that you can avoid their mistakes
• Ways to raise capital to start your maize farming business in South Africa
• Directory [Contact Details for South African suppliers of inputs (seeds, fertilisers, equipment etc) and contacts of maize farming training companies in South Africa]

The Maize Farming Business Plan package consist of 4 files

• Maize Farming Business Plan – PDF file (Comprehensive – 95 pages)
• Maize Farming Business Plan – Editable Word File (Comprehensive – 95 pages)
• Maize Farming Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 44 pages)
• Maize Farming Business Plan Automated Financial Statements – (Editable Excel file)

Testimonial 5

The BizBolts poultry business plan led us down the path from start to finish. Contact details of suppliers of key requirements were included in the business plan. It helped us crystallize our strategy, and the business plan was well received by the bank.

Testimonial 4

The business plan was very helpful, you did a great job of taking ideas and putting them into words as well as pointing out other aspects of the business plan I wouldn’t have thought of. I got funding using your business plan and it’s now 4 months since I started my poultry business, and everything is going well.

Testimonial 3

The business plan has a highly professional look and feel. The research really helps me look deep into the market that I am targeting, it’s well suited for the South African market. The business plan clearly outlined everything I need to start the business and the costs. It’s now easier to budget and plan. Thank you very much.

Testimonial 1

Many thanks to the BizBolts team for putting together a fantastic business plan, I could not have done this business plan on my own. I managed to get funding from investors to start my butchery business using your business plan.

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It is with excitement and pleasure to inform you that I have been successful in securing a loan from my bank. This would not have been possible if not for the BizBolts Business Plan. Thank you for your help, my dreams are now coming true.

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Thank you BizBolts for the business plan. I received the business plan immediately after payment, it was money well spent ! I was able to easily edit the business plan. After using the BizBolts business plan, I can wholeheartedly recommend their products and skills.

Testimonial 2

I am extremely pleased with the business plan and financial statements. The business plan is very detailed & it meets my requirements. I feel better equipped with tools that can help me secure funding.  I would have no hesitation of recommending your business plans to other people.

GET THE MAIZE FARMING BUSINESS PLAN (PDF, WORD AND EXCEL) - R500 Only.

We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 500 Rand.

We have several payment methods which you can use.

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Click  Buy Now  below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

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The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

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About The Author

BizBolts (Pty) Ltd is a business research company based in Johannesburg, South Africa. We sell prewritten business plans for various industries including livestock production, crop farming and retail businesses. BizBolts also publishes articles on business ideas, business news, business tips, personal finance, and entrepreneur profiles.

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Starting Maize Farming Business Plan (PDF)

Maize, also known as corn, is one of the most notable grain or cereal crops in the world.  After all, maize is a core part in the production of important products. Examples of such products are food products, ethanol, and livestock feeds, amongst others. The widespread cultivation of maize is due to those dynamics. Maize is relatively hassle-free to grow, handle, and store. Maize is also known as corn. In some countries, particularly Africa, maize is a staple food. Maize is grown widely in Africa, Americas, and Asia. So there is quite a huge demand for the food crop and its many products which is why it makes business sense to start a maize farming business. In this article we shall be looking at some essential knowledge areas that you must acquaint yourself with before you start the maize farming business, and the maize farming business plan – PDF, Word and Excel.

Maize farming is a lucrative business, providing income for millions of people, but there are some essential decisions that you need to make before you venture into the corn farming business. You have to make a decision on how many hectares you want to farm, which type of maize you will farm, which season you are going to plant your maize, and your target market. These choices will be affected by the amount of capital you have, and the size of your target  market.  If you do not have a lot of capital, you can always start small and grow your maize farming business overtime. You also need to carry out market research (Who are you going to sell the maize/corn to? At what price?) and write a corn farming business plan before you venture into the business. As indicated earlier, maize is also known as corn in other parts of the world.

Business Model

At a basic level, maize is cultivated for subsequent sale as grains or green mealies. These green mealies can be cooked or roasted. Then from post-harvest, the list of monetization approaches widens. The grain can be sold to millers who in turn process it into a wide assortment of food products including maize meal. You could even do the milling yourself and sell the end product. You can solely focus on cultivating maize seed. In countries where maize is the staple food, there is huge market of direct customers. As in, there are countless people looking to purchase maize for various uses.

Maize is an important industrial raw material so you can make money from that. For instance, maize is used in the production of alcohol and biofuels. You can sell to livestock feed producers; maize is a major ingredient of livestock feeds. Maize has global economic value so you can export it. There are significantly more returns from exporting your maize, especially to neighbouring countries. Numerous niching options when it comes to maize farming. That is why there are many business model options to pick from.

Land for Maize Farming Business

Type of soil is an important factor for a good maize harvest. Maize can be grown in a variety of soil types.  However it needs soil which is fertile and well drained. Another important factor is the pH of the soil, as it affects the availability of nutrients. Maize/Corn grow well in soil with pH of between 6-7. If the pH is lower than this, the maize produced will be of poor quality, and it may experience abnormal growth. Thus the pH of soil for maize should be close to neutral or slightly acidic. If the pH is too acidic, lime should be added to increase the pH of the soil to between pH 6-7. Other properties of good soil for maize include: sufficient and balanced quantities of plant nutrients, good internal soil drainage, good moisture, and good effective depth of the soil.  It is important that before you start farming maize/corn on your farm, you check whether the soil is suitable for maize farming. Your  corn farming business plan should take into account the cost of purchasing or renting the land.

Machinery and Equipment for Maize Farming

Land preparation must be properly done to ensure the soil is ready for the maize. The type of machinery and equipment needed for your maize farming business depends on the scale of production. For small scale this can be done using hand-held equipment whereas for medium to large scale heavy machinery such as tractors are needed.  Machinery and equipment which maybe needed include tractors, combine harvesters, fertilizer spreader equipment, irrigation equipment, spray equipment etc. Most farmers usually hire big machinery like tractors when they want to use them, rather than purchasing them outright as they are expensive.

Adequate water supply is also important meaning that irrigation maybe necessary. However maize farming can also be done without irrigation in areas which have a good supply of rainfall.  There may also be need of grid hydroelectricity energy for the irrigation systems, standby diesel generators for use during power outages, or solar powered irrigation systems. Farmers especially in the rural areas who do not have the modern farming equipment use animal drawn equipment in maize farming. The higher the level of mechanization at your corn farm, the higher the efficiency of your operations, and the profitability of your maize farming business. The maize farming business plan should include the costs of acquiring and hiring the various machinery and equipment.

Maize Farming Inputs

You require various farming inputs when doing maize farming. You start maize farming by planting maize seeds. Ensure that you use high quality maize seed from certified maize seed companies. It’s unwise to buy cheap, poor quality maize seeds as that will lead to poor harvest yield and low quality maize produce.

Fertilizers are also essential during maize farming as they support the growth of the maize by providing nutrients. The amount and type of fertilizers needed for maize farming depend on the fertility of the soil and the target yield. The most important nutrients for maize farming are Nitrogen and Phosphorous. Potassium and Zinc are also required.  Organic matter is also needed in maize farming. This can be in the form of compost, decayed leaves, animal manure etc. The functions of organic matter in maize farming include: increasing soil fertility, positively influencing the moisture level & temperature of the soil, increasing the soil friability and increasing the amount of decomposers organisms in the soil. Organic matter also increases the capacity of the soil to retain water and nutrients. It’s a soil conditioner.

Other essential maize farming inputs include herbicides, for effective weed control at your farm. Pesticides and fungicides are required for protecting your maize/corn plants against insects and fungi. Diligent measures must be put in place to fight against pests, diseases and weeds.  The costs of acquiring all these inputs should be included in your corn/maize farming business plan.

Pest And Disease Management

Field pests.

The most common field pests in maize farming are aphids, army worms, cutworms, leaf hoppers, and termites. Getting rid of these pests relies heavily on early detection and interventions. The first defence is proper land preparation and regular weed control. This alone can avoid incidences of pest insect pest infestations. Then as a rule of thumb you must always inspect your maize crop daily. Once you notice any insect pests you use chemical methods such as insecticides.

Animal Pests

These animal pests feed on the maize crop thus destroying the crop. Examples are pigs, rodents, baboons, monkeys, and birds, amongst others. Warding off most these animal pests requires robust physical security e.g. perimeter fences. You can also consider having people who scare off the animal pests. Scarecrows have also proven to be very effective in keeping animal pests away.

Storage Pests

In maize farming you need to know there are 2 main groups of storage pests. These are primary pests, secondary pests. The former attach healthy grain whereas the latter attacks damaged or vulnerable grain. Examples are weevils and larger grain borer. An important consideration in the fight again storage pests in maize farming is the temperature. Maintaining dryness also discourages the breeding of pests. No wonder before storing maize you must ensure it is adequately dried up. The presence of moisture and dirt promote pest development – that is why hygiene is important.

The most common diseases in maize farming are fungal and viral diseases. Notable fungal diseases are gray leaf spot, leaf blight, root rot common rust, head smut, and downy mildew. Fungal diseases are often aggressive. Once they set in, any delay in taking action leads to colossal losses. That is why it is important to avoid them in the first place.

One way to avoid them is deliberately cultivating hybrid maize varieties. Another way is to ensure there is no waterlogging and dirt lying around. If the fungal diseases do emerge, immediately use fungicides to get rid of them. The same applies for viral diseases; they are best prevented. Effective pest control helps prevent viral diseases since pests are usually the culprits in transmission.

Farm Workers

This depends on your scale of maize production and also your level of mechanisation. Significant mechanisation tends to reduce the number of workers you will need. However, it is not usually that hard to find cost-effective human resources on a contractual basis. So you will need to hire part time farm workers as and when necessary. The duties of the maize farm workers include cultivating the land, ploughing, planting, irrigation, applying manure & fertilizer on the land, weed & pest control, harvesting. The maize farming business plan should cater for the costs of paying all your employees.

Capital for Maize Farming Business

This depends on the scale of maize production and level of mechanisation amongst other factors. You can get a loan from the bank, or funding from investors, to use as capital to start your maize farming business. If you plan to raise capital from investors and a loan from the bank, you need a good maize farming business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your business overtime. Maize farming is profitable, so if you reinvest the profits you get, you can quickly grow. Even if you are not planning to get a loan, you should still get a maize farming business plan to guide you in starting and operating the business. It is essential for you to have a maize/corn farming business plan before you venture into the maize farming business, so that you know all the costs involved and you make an informed decision.

Harvesting And Storage Of Maize

Harvesting maize.

You can carry out maize harvesting using manual techniques or mechanical techniques. Manual techniques often entail the use of hands. Mechanical techniques often entail the use of combine harvesters. When the maize is around 20 percent moisture level it is ready to be harvested. That moisture level must drop to around 12 percent before the maize can be stored. That is why the maize grain will have to undergo some drying process prior to storage. Drying can be done naturally using the sun or artificially e.g. using heated air.

Storage Of Maize

You can store your maize in a bulky state or you can pack the grain into sacks or bags. It is important to ensure optimum grain moisture levels are reached first. You must also properly sort the grain to eliminate damaged or diseased grain. For long term storage, the grain will need to be chemically treated to protect from pests and diseases.

The market is huge and actually needs more players to start maize farming businesses. The demand for maize is very high, individuals consume maize and products processed from maize. Maize meal and Maize flour is used in meals all over the world. Maize is not just for human consumption but also for animal consumption. Maize is used in stock feed production for livestock production. The starch from the maize is used for a long list of things such as cosmetic products, adhesives, paints, inks, and medical drugs amongst many others. In some countries there are grain marketing entities. These entities buy maize directly from farmers. These provide the easiest way to get your maize purchased with little to no marketing effort. You can also take advantage of farmers’ markets to market your maize. The internet and social media platforms are also effective in generating leads. You can also approach potential bulk clients such as millers, manufacturers, and distributors. Some continents such as Africa actually import large quantities of maize annually.  However there are vast patches of arable land on the continent.  There are so many talking points on this but the relevant one for this subject is about potential. This means the market is not being adequately served by the local maize farmers. Market-wise it is a foregone conclusion that the market is vast and limitless. The maize business plan ought to include a proper marketing plan to use in your maize farming business.

Keys To Profitability

Choosing the right soil or improving it is pertinent (especially fertility). Comprehensive land preparation is also important in optimizing the soil. Choose the right maize variety, especially hybrid ones that have high yields and disease resistance. See to it that you actively monitor and deal with pests and diseases. Your storage regime of the maize grain must be done properly. Most losses in maize farming are post-harvest so be vigilant. Your choice of planting time must be carefully considered. It must be cognizant of weather implications and market demand dynamics. Adequate water availability is imperative but whilst ensuring there is sufficient drainage.

Pre-Written Maize Farming Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the maize farming business, we encourage you to purchase our well-researched and comprehensive maize farming business plan. We introduced the business plans after discovering that many were venturing into the maize production business without enough knowledge and understanding of how to run the maize/corn farming business, how to farm the maize, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global maize/corn farming business plan will make it easier for you to launch and run your maize farming business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the maize business.

Uses of the Maize Farming Business Plan (PDF, Word And Excel)

The maize business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your maize farming business
• As a maize farming business proposal
• Assessing profitability of the maize farming business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Maize Business Plan (PDF, Word And Excel)

The maize farming business plan include, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Risk Analysis
• Industry Analysis
• Market Analysis
• SWOT & PEST Analysis
• Operational Requirements (Including technical aspects of how to farm the maize, inputs requirements etc)
• Operational Strategy
• Why some people in the maize farming business fail, so that you can avoid their mistakes
• Ways to raise capital to start your maize farming business

The Pre-written maize farming business plan package consist of 4 files

• Maize Farming Business Plan – PDF file (Comprehensive Version – 90 Pages)
• Maize Farming Business Plan – Editable Word File (Comprehensive Version – 90 Pages)
• Maize Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 41 pages)
• Maize Farming Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of hectares, selling price of  the maize etc, and all the other financial statements will automatically adjust to reflect the change.

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Maize Farm Business Plan (PDF, Excel, Word)

Description.

• Executive summary
• Company overview
• Products and services
• Operation plan
• Market and industry overview
• Sales & marketing plan
• Financial plan
• Risk management plan
• Potential funding sources

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Maize Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Agriculture Industry » Crop Cultivation » Maize Farming

Are you about starting a maize farm? If YES, here’s a complete sample maize farming business plan template & feasibility report you can use for FREE.

Corn is very nutritious and it is known to be eaten in various forms by both humans and livestock.  As a matter of fact, corn is used as the main energy ingredient in livestock feed. Corn is also processed into a multitude of food and industrial products including starch, sweeteners, corn oil, beverages, industrial alcohol and fuel ethanol et al.

Maize (corn) farming is known to be a profitable business and over the years, it has evolved from small scale to a global industry in most countries where it is carried out.

A Sample Maize Farming Business Plan Template

1. industry overview.

Businesses in the maize (corn) farming industry primarily grow corn (except sweet corn) and produce corn seeds. Corn commonly refers to the grains or kernels of the tall annual cereal grass Zea mays, and it is a staple cereal in many parts of the world.

In the united states, it is most commonly used as livestock feed and in the production of ethanol, sweeteners, oil and other related products.

If you are a close watcher of the Maize Farming industry, you will realize that the industry is experiencing decline and falling from historic heights. In the united states, new federal regulations created a significant new market for maize, leading maize production to skyrocket in the early part of the last five years.

This increase in production eventually led to an oversupply of the crop, especially as downstream biofuel production has slowed since 2013 due to market saturation. However, global demand for maize has renewed. The industry is expected to bounce back from the lows of the previous five-year period.

Planted acreage will decrease, leading to a slight decrease in production volumes, which will in turn reduce oversupply and create healthy demand for the crop.

The Maize (Corn) Farming Industry is indeed a very large industry and pretty much thriving in all parts of the world especially in developed countries such as United States of America, Canada, United Kingdom, Germany, Brazil, Australia and Italy et al.

Statistics has it that in the United States of America alone, there are about 141,669 licensed and registered maize farms responsible for employing about 155,526 employees and the industry rakes in a whooping sum of $51 billion annually with an annual growth rate projected at -0.8 percent.

A recent report published by IBISWorld shows that typical of the agricultural sector, the Maize (Corn) Farming industry in the United States is overwhelmingly composed of a large number of relatively small operators, many of which are family owned farms.

In fact, 50.1 percent of farms plant corn acreage totaling less than 100 acres. Conversely, only 14.4 percent of corn is produced on farms covering 500 acres or more.

The report also shows that there is a long-term trend toward fewer farms across the agricultural sector, which also applies to corn farmers. Industry concentration is growing largely due to rising costs and intensifying competition; as conditions toughen; smaller farms are forced to sell their land.

As a result, fewer, yet larger farms emerge across the industry. As a matter of fact, with the recent advancement in technology, farmers can now comfortably grow crops such as maize in a country where such crops can hardly survive.

One thing is certain when it comes to commercial maize farming, if you are able to conduct your market research and feasibility studies before choosing a location to cultivate your maize, you are more likely not going to struggle to sell your maize because there are always food processing companies and consumers out there who are ready to buy from you.

Lastly, with commercial maize farming, it will pay you to not only cultivate maize and sell them for consumption in farm markets to retailers and consumers.

You can as well start a complimentary business like building a maize processing plant to process and package your maize (corn). The bottom line is that if you have enough farm land (space) and you are interested in maximizing commercial maize farming, you are sure going to make huge profits from the business.

2. Executive Summary

Kent Bloomberg® Maize Farms, Inc. is a registered commercial farm that will be based in the outskirts of Trenton, New Jersey – United States. We have done our detailed market research and feasibility studies and we were able to secure a well – situated and suitable farm land to start our commercial maize farming.

Our commercial maize farm is a standard farm hence will be involved in commercial maize cultivation, maize processing and packaging. We will be involved in both organic commercial maize farming and non – organic commercial maize farming.

We have put plans in place that will help us launch a standard and world – class maize processing plant within the first three years of officially running Kent Bloomberg® Maize Farms, Inc. We will process and package maize and ensure that they flood the market both in the United States and in other countries of the world.

We want to compete with the best in the industry, which is why asides from the fact that we have secured the required farm land and most of the farming equipment and machines, we have also hired some key employees who are currently undergoing training so as to fit into the ideal picture of the 21 st  century commercial maize farm workforce that we want to build.

We are in the commercial maize farming business because we want to leverage on the vast opportunities available in the commercial farming industry to contribute our quota in growing the U.S. economy, in national food production, raw materials production for industries, to export agriculture produce from the United States to other countries and over and above to make profit.

Kent Bloomberg® Maize Farms, Inc. is well positioned to become one of the leading commercial maize farms in the United States of America, which is why we have been able to source for the best hands and farm machinery to run the farm with.

We have put processes and strategies in place that will help us employ best practices when it comes to commercial maize farming as required by the regulating bodies in the United States of America.

Kent Bloomberg® Maize Farms, Inc. is a family business that is owned by Mr. Kent Bloomberg and his immediate family members. The farm cum business will be fully and single handedly financed by Kent Bloomberg and his immediate family members.

Before starting Kent Bloomberg® Maize Farms, Inc., Kent Bloomberg has worked with some of the leading commercial farms and food processing plants in the United States of America; he has a degree (B.Sc.) in Agricultural Science from the University of New Jersey.

3. Our Products and Services

Kent Bloomberg® Maize Farms, Inc. is a world class commercial farm that is committed to cultivating both organic and non – organic maize (corn) for both the United States’ market and the global market. We are in business to produce both food and raw materials for people and industries in commercial quantities. We will also ensure that we operate a standard maize processing and packaging plant as part of our complimentary business.

We are in this line of business to make profits, and we will ensure that we do all that is allowed by the law of the United States of America to achieve our business goals and objectives. These are the areas we will concentrate on in our commercial maize farms. If need arises we will definitely cultivate related crops;

• Cultivation of variety of maize (organic and non – organic)
• Standard Food Processing Plant

4. Our Mission and Vision Statement

• Our vision is to become one of the leading commercial maize farms and maize processing and packing brand not just in the United States of America but also on the global stage.
• Kent Bloomberg® Maize Farms, Inc.  is a world class commercial maize farm that is in business to cultivate organic, non – organic and processed maize for both the United States market and the international market.
• We want our well – packaged maize to flood every nooks and crannies of the United States and other countries of the world.

Our Business Structure

Kent Bloomberg® Maize Farms, Inc. is a commercial maize farm that intends starting small in Trenton – New Jersey, but hopes to grow big in order to compete favorably with leading commercial maize farms in the commercial farming industry both in the United States and on the global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. For this reason, we are committed to only hire the best hands in and around New Jersey.

At Kent Bloomberg® Maize Farms, Inc., we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

In view of the above, Kent Bloomberg® Maize Farms, Inc. have decided to hire qualified and competent hands to occupy the following positions;

• Chief Operating Officer

General Farm Manager

Administrator/Accountant

Maize Cultivation Manager/Supervisor

• Maize Processing and Packaging Plant Manager
• Sales and Marketing Executive
• Field Employees
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
• Supervise other section managers (corn cultivation manager and corn processing and packaging manager)
• Ensure compliance during project executions
• Providing advice on the management of farming activities across all sections
• Responsible for carrying out risk assessment
• Using IT systems and software to keep track of people and progress of the growth of crops (maize)
• Responsible for overseeing the accounting, costing and sale of farm produce after harvest
• Represent the organization’s interest at various stakeholders’ meetings
• Ensures that farming goals are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Handles all financial transactions for the company
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily farming activities across the various farming sections
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for financial forecasting and risks analysis
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the farm
• Serves as internal auditor for the farm
• Responsible for managing the maize cultivation section of the commercial maize farm
• Supervises other workers within the department
• Works closely with the General Manager to achieve the organizations’ goals and objectives

Maize Processing and Packaging Manager/Supervisor

• Responsible for managing the maize processing and packaging section of the commercial farm

Sales and Marketing Officer

• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects
• Writing winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the farm

Field Workers/Contract Staff

• Responsible for preparing farm lands for maize cultivation
• Responsible for watering the maize crop
• Weeding or fertilizer and/or pest control application
• Handle farm implements and machines as instructed by the section manager/supervisor
• Assist in handling the harvest of maize (corns)
• Carry out tasks in line with the stated job description
• Assist in transporting working tools and equipment from the farm and back to the designated store room
• Handles any other duties as assigned by the line manager

Client Service Executive/Front Desk Officer

• Welcomes guests and clients to the farm by greeting them in person or on the telephone; answering or directing inquiries
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels/documents for Kent Bloomberg® Maize Farms, Inc.
• Distribute mails in Kent Bloomberg® Maize Farms, Inc.

6. SWOT Analysis

Kent Bloomberg® Maize Farms, Inc. does not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis.

We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard maize farm that will favorably compete with leading commercial maize farms in the United States of America and in other parts of the world.

We are quite aware that there are several large, medium and small scale maize farms all over Trenton – New Jersey and even in the same place where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Kent Bloomberg® Maize Farms, Inc. employed the services of an expert HR and Business Analyst with bias in the commercial farming industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Kent Bloomberg® Maize Farms, Inc.;

Our strength as a commercial maize farm is in the fact that we have healthy relationships with loads of major players (agriculture merchants who deal in corn) in the commercial farms industry; both suppliers and buyers within and outside of the United States.

We have some of the latest commercial farming machines, tools and corn processing equipment that will help us cultivate corn in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in Trenton – New Jersey on our payroll.

Our weakness could be that we are a new commercial maize farm in the United States, and perhaps the fact that we decided to diversify our farming activities could count against us initially. We are aware of this and from our projection; we will overcome this weakness with time and turn it to a major advantage for the business.

• Opportunities:

The opportunities that are available to us cannot be quantified; we know that there are loads of individuals who consume both organic and non – organic corn in different forms both in the United States of America and other parts of the world.

We will ensure that we maximize the opportunities available to commercial maize farmers. Due to their rising popularity, GM seeds account for a significant amount of revenue and the demand for maize is anticipated to keep growing as renewable energy targets rise each year.

Some of the threats and challenges that we are likely going to face when we start our own commercial maize farm are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), unfavorable government policies and the arrival of a competitor (a commercial farm that cultivates same crop – maize) within same location.

There is hardly anything you can do as regards these threats and challenges other than to be optimistic that things will continue to work for your good.

7. MARKET ANALYSIS

• Market Trends

One of the common trends in the commercial maize farming line of business is that most players in the industry are no longer concentrating only on non – organic maize farming. They now find it easier to run both organic maize cultivation and non – organic maize cultivation.

It is fact that despite that organic food are expensive, the sale for organic food is on the increase and it is indeed profitable.

Despite the fact that commercial maize farming has been in existence since time immemorial, this does not in any way make the industry to be over saturated; commercial maize farmers are exploring new technology to continue to improve the cultivation, preservation and processing process. The fact that there is always a ready market for maize makes the business highly profitable.

Lastly, it is a common trend to find standard commercial maize farmers run a corn processing plant business alongside their farm. It is a means of maximizing profit in the business. Besides, maize is consumed by both human and livestock hence it is ideal to process, package and ship it to other countries of the world.

8. Our Target Market

It is a known fact that the target markets of those who are the end consumers of maize in any form and who benefit from the business value chain of commercial maize farming is all encompassing.

Almost every household consumes maize in different forms. In essence a commercial maize farmer should be able to sell his or her farm produce to as many people as possible including hotels, grocery stores, restaurants, livestock farmers and production companies that make use of corn as raw materials.

We will ensure that we position our business to attract consumers of maize not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our farm produce either in raw or processed form to other countries of the world.

Our competitive advantage

The truth is that, it is easier to find entrepreneurs flocking towards an industry that is known to generate consistent income which is why there are more commercial farmers in the United States of America and of course in most parts of the world.

As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial farming. This is so because part of the success of any nation is her ability to cultivate her own food and also export foods to other nations of the world.

Kent Bloomberg® Maize Farms, Inc. is fully aware that there are competitions when it comes to selling commercial farm produce including corn all over the globe, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in the United States and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable maize farming processes that can help us sell our produce at competitive prices, good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard commercial maize farm that will also include a corn processing plant. With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups commercial maize farms) in the industry meaning that they will be more than willing to build the business with us, help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Kent Bloomberg® Maize Farms, Inc. is in the commercial farming business for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives.

In essence we are not going to rely only on the sale of our farm produce to generate income for the business. Below are the sources we intend exploring to generate income for Kent Bloomberg® Maize Farms, Inc.;

• Cultivation of various species of maize (both organic and non – organic)

10. Sales Forecast

We conducted a thorough market survey and feasibility studies and we were able to discover that the sales generated by a commercial farm depends on the size of the farm and the nature of the commercial farm.

We have perfected our sales and marketing strategies and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income/profits from the first year of operation and build the business from survival to sustainability.

We have been able to critically examine the agriculture industry cum commercial maize (corn) farm line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

• First Fiscal Year-: $200,000
• Second Fiscal Year-: $400,000
• Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government policies. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are quite aware that the reason why some commercial maize farms hardly make good profit is their inability to sell off their maize as at when due. Corn ripens within a short time after harvest and if they are not sold or processed, they will get so hard that it won’t be good for direct consumption. In view of that, we decided to set up a standard corn processing plant to help us

• Introduce our business by sending introductory letters alongside our brochure to stakeholders in the agriculture industry, grocery stores, maize merchants, hotels, production companies that rely on supply of maize as raw materials and maize processing plants et al.
• Advertise our business in agriculture and food related magazines and websites
• List our commercial maize farm on yellow pages ads
• Attend related agriculture and food expos, seminars, and business fairs et al
• Leverage on the internet to promote our business
• Engage in direct marketing
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means (both conventional and non – conventional means) to advertise and promote the business.

We intend growing our business which is why we have perfected plans to build our brand via every available means. Below are the platforms we will leverage on to boost our commercial maize farm brand and to promote and advertise our business;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our business
• Install our billboards in strategic locations all around Trenton – New Jersey
• Engage in roadshows from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact hotels, restaurants, grocery stores, production companies that rely on the supply of corn, agriculture produce merchants and residents in our target areas by calling them up and informing them of Kent Bloomberg® Maize Farms, Inc. and the farm produce we sell
• List our commercial maize farms in local directories/yellow pages
• Advertise our commercial maize farms in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

If you want to get the right pricing for your farm produce, then you should ensure that you choose a good location for your commercial farm, choose a good breed/seed that will guarantee bountiful harvest, cut the cost of running your farm to the barest minimum and of course try as much as possible to attract buyers to your farm as against taking your farm produce to the market to source for buyers; with this, you would have successfully eliminated the cost of transporting your harvest to the market and other logistics.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our corn is to sell them at competitive prices hence we will do all we can to ensure that the prices of our corn are going to be what other commercial corn farmers would look towards beating.

One thing is certain, the nature of commercial farming makes it possible for farmers to place prices for their farm produce based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into a loss. The earlier you sell off your harvested maize, the better for your business.

• Payment Options

The payment policy adopted by Kent Bloomberg® Maize Farms, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Kent Bloomberg® Maize Farms, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via Point of Sale Machines (POS Machines)
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for farm produce purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a commercial maize farm with a corn processing plant, there are some key factors that should serve as a guide. Factors such as the capacity of maize processing plant you want to own and the size of the commercial maize farm.

Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to start a world – class commercial farm, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your farm is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, visions and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a commercial maize farm; it might differ in other countries due to the value of their money. Below are some of the basic areas we will spend our start – up capital in setting up our commercial maize farm;

• The total fee for incorporating the business in United States of America – $750
• The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) at a total premium – $9,400
• The amount needed to acquire/lease a farm land – $50,000
• The amount required for preparing the farm land – $70,000
• The cost for acquiring the required working tools and equipment/machines/fencing et al – $10,000
• The amount required for purchase of the first set of maize seedlings et al – $50,000
• The amount required to set up a standard maize processing plant within the farm facility – $100,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost of launching an official website – $600
• The amount required for payment of workers for a period of 3 months – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of $500,000 to start a standard commercial maize farm with corn processing plant business in the United States of America. These are some of the equipment that we would need to fully launch our commercial maize farm,

• Soil cultivator
• Harrow (e.g. Spike harrow, Drag harrow, Disk harrow)
• Stone / Rock / Debris removal implement (e.g. Destoner, Rock windrower / rock rake, Stone picker / picker)
• Broadcast seeder (alternatively: broadcast spreader, fertilizer spreader or Air seeder)
• Plastic mulch layer
• Transplanter
• Sprinkler system irrigation
• Wheel Barrow

Basically, the nature of commercial maize farms does not require an office space; most people that run commercial farms operate directly from their farms. But we have decided to open a small liaison office; a place where administrative jobs will be carried out on behalf of the business.

Generating Funds/Startup Capital for Kent Bloomberg® Maize Farms, Inc.

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as commercial maize farming business.

Kent Bloomberg® Maize Farms, Inc. is a family business that will be owned and managed by Kent Bloomberg and his immediate family members. They are the sole financiers of the firm, but may likely welcome other partners later which is why they decided to restrict the sourcing of start – up capital for the business to just three major sources.

These are the areas where we intend sourcing for fund for Kent Bloomberg® Maize Farms, Inc.;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility)

N.B:  We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business closes shop.

One of our major goals of starting Kent Bloomberg® Maize Farms, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our farm produce (organic and non – organic corn and even processed and packaged corns) a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Kent Bloomberg® Maize Farms, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organization’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more as determined by the management of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry and they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts in various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All forms of Insurance for the Business: Completed
• Leasing of farm land in Trenton – New Jersey and preparing the farm land: Completed
• Conducting Feasibility Studies: Completed
• Start – up Capital Generation: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging, Marketing/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Building/construction of cages and fence et al: In Progress
• Purchase of the needed working tools, machines and equipment: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Farm land Treatment, Health and Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry (agriculture farm produce merchants, fertilizer suppliers and transporters et al): Completed

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[Pdf Sample] Business Plan For Cattle Farming In South Africa Docx

In recent years, the cattle farming industry in South Africa has experienced significant growth and opportunities. With its favorable climate and vast landscapes, the country provides an ideal environment for cattle farming.

[Pdf Sample] Cattle Farming Business Plan Proposal In South Africa Docx

To write a business plan , here is a breakdown of how it should be structured and what should be in each category. After this instruction, I will provide you with a sample of one I wrote for my farm , let us go:

Executive Summary

Introduction to cattle farming.

In this section, we will delve into the fundamentals of cattle farming . We’ll explore the different cattle breeds suitable for South Africa , land requirements, and the significance of proper infrastructure and equipment. Understanding the basics is essential for running a successful cattle farming business .

Read Also:  [Pdf Sample] Business Plan For Shrimp Farming Docx

Market Analysis

Farm infrastructure and equipment.

To ensure the well-being of your cattle and streamline operations, you need to invest in appropriate farm infrastructure and equipment . This section will discuss the essential infrastructure requirements, including fencing, housing, and water supply. Additionally, we’ll explore the necessary equipment for feeding, milking, and handling cattle.

Breeding and Livestock Management

Feed and nutrition.

Providing balanced nutrition is vital for the health and productivity of your cattle. This section will delve into the nutritional requirements of different cattle breeds and the availability of feed resources in South Africa . We’ll discuss feeding strategies, forage production, and supplement options to ensure your cattle receive optimal nutrition throughout their lifecycle.

Health and Veterinary Care

Maintaining the health of your cattle is crucial for preventing diseases and ensuring optimal growth. In this section, we’ll cover vaccination schedules , disease prevention measures, and the importance of regular veterinary check-ups. Implementing proper health and veterinary care practices will safeguard the well-being of your cattle and minimize potential losses.

Marketing and Sales Strategies

Effectively marketing and selling your cattle and cattle products is essential for generating revenue. This section will explore various marketing channels, such as direct sales, auctions, and online platforms. We’ll discuss branding, product differentiation, and customer relationship management to help you develop a robust marketing and sales strategy.

Financial Projections

Risk assessment and mitigation.

Identifying potential risks and implementing mitigation strategies is crucial for minimizing the impact of unforeseen events on your cattle farming business . This section will cover common risks in the industry, such as droughts, disease outbreaks, and market fluctuations. By addressing these risks proactively, you can protect your investment and ensure long-term sustainability.

How much land do I need for a cattle farming business in South Africa?

Read Also:  [Pdf Sample] Business Plan For Pig Farming Docx

What are the popular cattle breeds for meat production in South Africa?

Bonsmara: Bonsmara cattle are well-adapted to South African conditions and known for their excellent meat quality, adaptability, and fertility.

Simbra: Simbra is a crossbreed between Simmental and Brahman cattle, combining the meat quality of Simmental with the heat tolerance and disease resistance of Brahman.

How do I market and sell my cattle products effectively?

To effectively market and sell your cattle products, consider the following strategies:

Identify your target market: Determine whether you will be selling directly to consumers, local markets, restaurants, or wholesalers. Understand their preferences and requirements to tailor your marketing efforts accordingly.

Networking and partnerships: Build relationships with local farmers, restaurants, and retailers who may be interested in sourcing locally produced cattle products. Attend agricultural fairs, networking events, and trade shows to expand your professional network.

What are the common diseases that affect cattle in South Africa?

Foot and Mouth Disease (FMD): FMD is a highly contagious viral disease that affects cloven-hoofed animals, including cattle. It can lead to significant economic losses due to trade restrictions.

Bovine Respiratory Diseases: Various respiratory diseases, such as Contagious Bovine Pleuropneumonia (CBPP) and Infectious Bovine Rhinotracheitis (IBR), can affect cattle in South Africa , leading to respiratory distress and reduced productivity.

How long does it take for cattle to reach market weight?

The time it takes for cattle to reach market weight depends on various factors, including breed, feeding regime, genetics, and management practices. On average, it takes around 18 to 24 months for cattle to reach market weight. However, some cattle breeds or specialized production systems may have shorter or longer production cycles.

In conclusion, starting a cattle farming business in South Africa requires careful planning and execution. By following a well-defined cattle farming business plan , you can navigate the challenges and capitalize on the opportunities in this thriving industry. Remember to adapt your plan as needed and stay abreast of industry trends to remain competitive and successful.

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Author: adewebs, you may also like:, [pdf sample] business plan for pig farming docx, starting a poultry farm with limited resources in ghana: a comprehensive guide for new farmers, how to register agribusiness company in kenya (see full guide), starting a poultry farm with limited resources in nigeria: guide for new farmers, leave a reply cancel reply.

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Influencing Factors of Maize Production in South Africa: The Case of Mpumalanga, Free State and North West Provinces

Asian Journal of Advances in Agricultural Research

Aims: Maize is of great significance in the national food security of South Africa. Maize production levels in South Africa continue to decline, further deteriorating the situation of increased food insecurity, unemployment and increased poverty levels in the face of increasing population. This paper investigated fundamental variables influencing maize yield in the South African major maize producing regions. Study Design: A multi-stage stratified sampling method was employed to select maize producing farmers in the major maize producing provinces, namely Mpumalanga, Free State and North West provinces of South Africa. Furthermore, three districts were selected from which maize farmers were then selected. Methodology: Using linear multiple regression for a sample of 202 maize farmers, maize yield as a dependent variable was regressed against land size, fertilizer usage, labour, herbicides and seeds as independent variables. The paper employed the Cobb-Douglas production function to ...

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Estimating agriculture technologies’ impact on maize yield in rural South Africa

• Original Article
• Open access
• Published: 21 July 2023
• Volume 3 , article number  149 , ( 2023 )

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• Alex Boakye   ORCID: orcid.org/0000-0001-8646-2115 1  

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New technologies and digital infrastructures are enabling smart farming with high productivity levels across countries. Yet, there is dearth of evidence on how they are enabling smallholder farmers in Africa to increase their farm produce. By focussing on smallholder maize crop producers in South Africa and relying on a panel data for the period 2011–2021, this study applied a stochastic production frontier framework and Cobb–Douglas production function to estimate the relationship between variance of yield increase in relation to aggregate modern technologies adopted. The stochastic production frontier model was estimated using simple ordinary least square, maximum likelihood estimation and probit regressions. The analysis adopted a three-stage procedure which began with the specification of regression model, the calculation of least residuals squares of the explanatory variables and finally the estimation of the variances in the functional forms of output levels. The results revealed a positive relation between the application of digital agriculture technologies and increased crop performance for rural maize cultivators in South Africa. The policy inference from this study is that accelerating investment in digital agriculture infrastructure offers the promise of a quadruple return for South Africa’s agriculture sector.

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Introduction

New technologies and digital infrastructures such as robotics, remote sensing technologies and unmanned aerial vehicles, artificial intelligence and big data analytics among others are enabling smart farming with high productivity levels across the world (Boakye and Babatunde 2021; Boakye et al. 2021 ). Thanks to advances in today’s digital revolution, agriculture is now becoming more integrated in the global value chain. Yet, the interplay between technology adoption and increased crop yield is one that is not well explored in the literature. Given the significance of yield productivity as a determining factor of measuring a country’s overall output, examining the drivers of high crop yields is crucial to inform better policy decisions (Edgerton et al. 2012 ; Evans 2018 ).

Crop yield is a principal unit of measuring agriculture’s productivity. Crop yield also forms part of the basis to understand the efficiency of new techniques introduced in farming practice. Yet, few studies have explored how yield productivity is driven by the application of modern tools and techniques in small-scale farming. The lack of extensive research in this field suggests that data on how farm produce are influenced by technology application is limited. The study of crop yield and its relation to technology application is critical to understand the capacity of agriculture to contribute to overall welfare. As emerging technologies continue to be integrated in the agriculture sector, this study explores how they influence maize yield performance in rural South Africa.

Maize is one of the most important grain crops cultivated in South Africa. An average of 9 million metric tons of maize are produced annually in the country. In 2020, South Africa’s total production of maize was estimated at 15 million metric tons, indicating a slight increase from 14 million metric tons in the previous year. Although large-scale maize production is generally carried out by commercial farmers, emerging and small-scale farmers equally contribute significantly to the country’s overall production capacity (Aguera et al. 2020 ). However, in recent times, maize yields by small-scale farmers in rural areas have been declining. The decrease in the yields has been attributed to harsh climate conditions, yet it is difficult to rule out farmer’s limited farming skills and the lack of climate smart technologies applied in crop production. There is generally a low uptake and application of modern technologies by these farmers because of capital constraints and limited government support. Moreover, many of the rural farmers have not been exposed to the benefits of adopting modern innovations in farming and as such do not fully appreciate their usage.

Given the growing levels of maize related food consumption in the country amidst the disruption of global food supply chain orchestrated by the Russia Ukraine conflict, South Africa famers may need to adopt new and better approaches to increase their maize production. Fortunately, there are several proven technologies and interventions that can support maize production sustainability. What is needed is to encourage their adoption by farmers including small-scale farmers in rural areas. To achieve this objective, however, requires having reliable data that demonstrate strong positive net effects of technology application on yield performance. As indicated earlier, the study of technological impact on yield performance is critical to understanding South Africa’s agriculture sector capacity to provide sustainable food for long periods. This position forms the foundation of this study.

When it comes to estimating technological contribution to yields, most evidence from agriculture literature exclusively focus on highly industrialised countries (Ramirez and McDonald 2006 ; Tolhurst and Ker 2016). In contrast, there is limited evidence from South Africa even though technology integration in farming practices is widely adopted. This study, therefore, purports to contribute to the literature by drawing evidence from South Africa using the country’s yield data for the period 2011–2021. The study draws on the overwhelming evidence which suggest that adopting digital technologies in small-scale farming is good for maximising productivity and increasing production levels. This study is novel in that it adopts a sophisticated methodology which relies on a stochastic production framework and Cobb–Douglas production function. The focus on smallholder farmers yield in rural South Africa also contributes to the study’s uniqueness since the area has not attracted the needed attention from recent scholars. The overall objective is to encourage policy makers to design and implement policies that promote the fast adoption of smart technologies in rural farming. The structure of the article proceeds as follows: the next section provides an overview of crop production in South Africa. It then explores the potentials of modern technologies in crop production after which the literature on technology adoption and increase in crop yield is presented. The subsequent sections focus on methodology, results, discussion, and policy recommendation.

Overview of crop production in South Africa

The agriculture sector is one of the important sectors of South Africa’s economy. The sector contributes around 10% to the country’s total export earnings and remains a key source of livelihoods for most rural population (Aguera et al. 2020 ). Among the major agriculture practices in South Africa, crop production represents one of the key practices engaged by most farmers. Different kinds of crops are cultivated in South Africa. Meanwhile the predominant ones are maize, wheat, soybeans and oat (Christiansen and van den Brink 1994 ). Approximately, 9 million metric tons of maize are produced annually on a 2.5 million hectare of land. According to the Food and Agriculture Organisation, both hybrid and local maize are grown in South Africa, yet the local ones are often preferred for home consumption (Christiensen and Demery 2018 ). The local maize which is mostly cultivated by farmers in rural areas has recently been experiencing low yields. This phenomenon has been attributed to the lack of modern techniques and poor farming practices adopted in crop production by small-scale maize growers. Traditionally, their farming operations are characterised by aggressive practices such as ploughing, burning and the application of toxic chemicals which decrease soil fertility. In addition, majority of crop cultivators in rural communities engage in land intensification, a practice which has negative consequence on land productivity. All these factors contribute to low crop production. Within the past decade, for instance, production levels have suffered fluctuations (Lowder et al. 2016 ; Gray et al. 2018 ). As indicated in Fig.  1 , in 2016, South Africa experienced a decline in the production of maize to about 8 million metric tons from a previous 15 million metric tons in 2014. Similarly, production dropped from approximately 17 million metric tons in 2021 to 15.3 million metric tons in 2022.

Source: Adapted from Statista 2023

Production of maize in South Africa 2010–2022.

The cause of this reduction is not well known; however, experts attribute it to harsh climate conditions, inadequate land preparation, low access to quality seed varieties and lack of innovative farming practices (Dihel et al. 2018 ; Alvarez and Berg 2019 ). Some scholars do not also rule out the impact of COVID-19 pandemic on the low maize production recorded in 2021 and 2022. The restrictions on movement meant that farmers had limited access to important agriculture inputs such as fertilisers.

South Africa is one of the key producers and exporters of maize within the Africa region. The country does not only export maize to neighbouring countries but also beyond the African borders to Asia and European markets. In 2022, for instance South Africa exported about 2.47 million metric tons of yellow maize and 568,569 metric tons of white maize to Asia and European markets (Statista 2023 ). Amidst the increasing climate impact on agriculture productivity, maize producers may need to adopt new and improved practices if they are to sustain their production levels. To achieve this will, however, not be easy as the lack of technical expertise among maize growers especially those in rural areas continues to be a hindrance to efforts to achieving food security. To boost productivity in the coming years will mean applying innovative techniques and practices by farmers (Tolhurst and Ker 2016; Evans 2018 ).

Against this backdrop, this study estimates the benefits of digital technology application on maize crop production with a focus on rural South Africa. In particular, the research sought to stimulate the idea that adopting digital technologies can have greater impact on agriculture productivity as well as serve as corner stone of both continues growth and poverty reduction. To achieve this underlining objective, the paper responds to the following research questions:

What are the potentials of modern technologies in crop production?

What are the parameters for estimating technological impact on farm productivity?

How does the application of digital technologies drive crop productivity?

Answers to these questions will provide a better understanding on how modern digital technologies bring value to small-scale farmers in South Africa. The paper also examines the evidence regarding the impact of technology change on farming and poverty reduction and highlights areas of doubts, particularly relating to the role of digital technologies in agriculture growth.

The potentials of modern technologies in crop production

In view of the growing world population and the concerns about food security, the issue of improving crop yield has become more relevant in the discourse of many scholars and policy makers. From time immemorial, farmers have adopted diverse ways to boost their agriculture productivity. From the use of fertilisers to the planting of different seed species, increasing crop performance has been a fundamental objective of most farmers. Today, thanks to new innovations, the agriculture sector is also benefiting from the prospects of modern science and technology services (Duncombe 2016 ; Knierim et al. 2018 ; Rotz et al. 2019 ). For instance, novel digital technologies are enabling farmers the opportunity to monitor their crop growth, apply fertilisers as well as predict accurate weather (Aboh 2008 ; Rotz et al. 2019 ; Klerkx 2019 ).

Today’s farming operations rely on sophisticated innovative tools such as sensors, robotics and aerial images and satellites to drive long-term productivity and increase profitability. The evolution of stress factors and plant diseases has given importance to the use of sensors to monitor crop growth and performance at every stage of development process (Trendov et al. 2019 ; McCampbell et al. 2021 ; Boakye et al. 2022 ). For instance, from the early stages of planting to harvesting, regularly monitoring of crop growth is an essential practice for timely detection of any potential threat which may affect crop yield. Digital technologies offer this possibility. For example, internet of things enabled sensors and drones do not only allow efficient monitoring of plant growth but also help gather valuable data on temperature and nutritional contents for optimal decision making. Drones in particular are considered useful in pest control and fertiliser applications in ways that do not expose plant soil to toxic chemicals.

As indicated earlier, weather has a profound influence on crop development and growth. Hence, ensuring accurate weather analysis is critical for crop performance. The good news is that farmers today have the opportunity to adopt modern tools and techniques to obtain accurate weather predictions. For instance, big data analytics as well as soil thermometer enables the collection and analysis of soil temperature, humidity, precipitation to inform decisions on when to plant, irrigate and apply pest control interventions (Thompson and Gyatso 2020 ; Nguimkeu, and Okou 2021 ). In essence, proper weather forecast and analysis allow farmers to avoid heat or frost damages thereby contributing to their crop yield.

Another important factor in the farming revolution is the invention of seed drills. Seed drills are devices used to plant seeds in an evenly and required depth to allow for proper germination. Seed drills contribute to labour efficiency in that it reduces the amount of time one spent on planting seeds manually. The use of seed drills improves crop yield significantly in that it correctly sows seeds in the right depth and distance to prevent pest invasion (Townsend 2016 ; Subramanian 2021 ). In addition, the high level of accuracy benefited from direct drilling means low cost as a result of less soil damage and wasted resources.

Finally, robotic technologies enable more reliable management and monitoring of water, air and soil quality. Robotic technologies equally give farmers greater control over crop production, processing, transportation and storage which results in high efficiencies, increase profitability and reduce environmental and ecological impact (Nakawuka et al. 2018 ; Ng and Ker 2019 ; Shah 2020). These technologies offer huge potentials for increased yield productivity if they are combined and used properly.

What does the literature reveal about technology adoption and increase in crop yield?

A growing number of studies have explored the impact of digital technologies in crop production. Most of these studies have revealed a strong linkage between technology adoption and increased agriculture productivity (Klerkx et al. 2019 ; Thompson and Gyatso 2020 ). Emerging evidence from Africa also shows how digital technologies are transforming small-scale farmers productivity and profitability by increasing efficiency, reducing vulnerability and improving access to farm inputs (Kansiime et al. 2014 ; Ogada and Nyangena 2015 ; Thomas 2020 ). In Kenya for example, limited access to quality fertiliser is often cited as one of the shortcomings of crop performance. To respond to this challenge, a group of innovators is using a software known as SafiOrganics to downsize and decentralise fertiliser production using locally available resources and labour. This platform is now allowing rural farmers to cut down logistical cost while producing high quality fertilisers capable of increasing their yields by 30%.

In other part of Kenya, start-up companies called UjiziKilimo and SunCulture are using big data analytics to enhance farmers’ insights in irrigation, fertiliser application and pest management (Ogada and Nyangena 2015 ). These platforms are enabling farmers to increase their crop produce while achieving high level of efficiency. In some rural areas in Nigeria, mobile phone applications, sensors, satellites, and radio-frequency identification are being adopted by local farmers to measure and analyse soil quality to inform planting and irrigation decisions (Aboh 2008 ). In Ghana, Farmerline and AgroCenta are leveraging data-driven farming practices for small-scale farmers to reduce import waste and improve crop yield (Thompson and Gyatso 2020 ).

Given that sustainable farming reflects the capacity to generate sufficient food in an economically efficient, socially responsible, and environmentally sound way, solutions for raising agricultural productivity are influenced by the shifting relationship between technology adoption and sustainable farming. In a study exploring the potential impact of innovation and adoption of digital agriculture within the Middle East and North Africa (MENA) region, Bahn et al. (2021) found that digital agriculture shows promise in generating high-value agricultural production as well as improving supply chain and logistics performance while ensuring optimise use of scarce natural resources in rural MENA countries.

It is well known that plant disease and pest invasion are some of the biggest problems local farmers in rural areas face. Crop damage from pests often have huge economic consequences, hence taking actions to reverse pest infestation is essential to combating this adverse impact (Edgerton et al. 2012 ; Trendov 2019). In East Africa, yields from smallholder crop production are typically only 20–30% of what could be produced if the best seeds, fertilisers, pest control, agronomic and water management practices are applied (Kansiime et al. 2014 ; Nakawuka et al. 2018 ). Interestingly, a start-up company called farm Africa has identified this problem and is combining farmer driven innovations with local knowledge to boost farm productivity and crop yield.

Evidence from other parts of Africa also reveal transformative results in the adoption of digital technologies in agriculture productivity. For example, in Ethiopia, a government-sponsored initiative know as Farmer Hotline is offering farmers free advisory services via interactive voice response (IVR)/short message service (SMS) on how to maintain crop health and boost crop production.

Rwanda government is also supporting smart agriculture by investing in large-scale digital hardware and software systems that enable smart farming. The government has recently introduced a Crop Intensification Program (CIP) policy which is aimed at boosting agricultural productivity through an improvement of productive inputs use, irrigation coverage and soil quality.

Methodology

Data sources.

South Africa—Maize yield (kg per hectare) actual values, historical data, forecasts and projections were sourced from World Bank from 2011 to 2021. Maize yield, measured as kilograms per hectare of harvested land. Production data related to crops harvested for dry grain only. Crop harvested for hay or harvested green for food, feed, or silage and those used for grazing were excluded. The traditional production variables include yield (per hectare of farm), labour, fertiliser, seed, and irrigation.

The technology variables considered in this study included farmer-preferred adaptation technologies. Environmental variables were also included to capture effects of climate variability on the mean and variance of maize crop production. These included the climate satisfaction index of the preceding main agricultural season.

Estimating the contribution of technological progress in crop yield

To accurately estimate the contribution of technological progress in crop yield for small-scale farming is very challenging due to the highly heterogeneous performance of crop within a given plot. In most cases, the approach to measure the impact of technology is conditioned on observing yield trend relative to adoption of particular technology over a period of time. Several scholars have suggested that the best approach to use is the one based on change in total output over a given time period per the level of technological change (Adrian 2012 ; Tolhurst, and Ker 2015 ; Park et al. 2019 ). Their argument is that if a researcher chooses a base period (t o ) by which a farmer operates at a near equilibrium output and adopt new techniques to achieve a new level of output in the second year (t 1 ), then the difference represents the contribution which technological change has made to outputs between (t o ) and (t 1 ). This approach is based on the concept of Cobb–Douglas linear production function. For instance, if a production function is constructed for a base year and a technological progress is adopted in a given period, one can estimate the influence which technological change has made to the change in output between the two periods by the difference between the index of output actually produced in the given period and the index of output estimated from the base period production function (Ng and Ker 2019 ).

The Cobb–Douglas production function is given by

where  Q j,t  is the output of the vessel  j  in period  t  and  X j,i,t  and  X j,k,t  are the variable and fixed vessel inputs ( i,k ) to the production process. As noted above, the error term is separated into two components, where  v j,t  is the stochastic error term and  u j,t  is an estimate of technical inefficiency.

Other methodologies have also been suggested by different authors in estimating technological change in crop yield. One common approach usually mentioned is the deterministic approach. This approach measures output changes given capital stock inputs; nondiscretionary stock inputs and existing technology (Ramírez and McDonald 2006 ; Renard et al 2013 ). In this approach, the output level is estimated using linear programming procedures and is interpreted as the output that could be produced with full and efficient utilisation of the variable input(s), given the capacity base.

This is expressed as: ln \({{\varvec{Y}}}_{{\varvec{t}}=}\) λ j  + σ 2 j +  β 1 \(\mathbf{I}\mathbf{n}{{\varvec{N}}}_{{\varvec{i}}{\varvec{t}}-1}+{\varvec{\beta}}2\mathbf{I}\mathbf{n}{{\varvec{H}}}_{{\varvec{i}}{\varvec{t}}-1}\) where the unknown parameters λ j , σ 2 j and functions hj (t) are estimated with a maximum likelihood approach using the heuristic EM algorithm for the j components of the mixture. A limitation of the deterministic approach is that it does not quantify uncertainties as part of its production decline evaluation.

Another approach is stochastic approach which uses probability simulator to perform multiple iterations. It conducts outputs estimation through modification of the inputs incorporated in the production (or distance) function. A potential advantage of the stochastic production frontier approach over DEA is that random variations in catch can be accommodated, so that the measure is more consistent with the potential harvest under “normal” working conditions. A disadvantage of the technique is that, although it can model multiple output technologies, doing so is somewhat more complicated, requires stochastic multiple output distance functions, and raises problems for outputs that take zero values. The stochastic model is given as

where  q j  is the output produced by firm  j , x is a vector of factor inputs,  v j  is the stochastic (white noise) error term and  u j  is a one-sided error representing the technical inefficiency of firm  j . Both  v j  and  u j  are assumed to be independently and identically distributed with variance \(\sigma_{v}^{2}\) and \(\sigma_{u}^{2}\) , respectively.

It should be noted, however, that, whatever method used for crop yield forecasting and estimation at any level of aggregation, it is important to distinguish between accuracy claims and a publicly available and independently verifiable track record between the forecast and the final yield estimate after harvest. Within the context of smallholder crop production, standardising methods for yield estimate is crucial to obtaining accurate date and determining the suitability of farming practices under different environment (Hanuschak 2013 ). This is because a standard methodology allows for identifying any trade-off in crop performance after adopting a particular technology.

It is equally important to stress that technology adoption may also contribute to the efficiency of other factors of production. It may be, therefore, inconsequential to attribute crop yield performance to only improved technology. For instance, how can one be certain that differences in crop yield is as a result of the sole application of a particular technology? To address this uncertainty or casual inference requires the use of experimental date. Experimental data are gathered through a process of active intervention to produce and measure change when a variable is altered. This data usually allows the researcher to determine a causal relationship and is typically projectable to a larger population. However, without experimental data, there are two problems a researcher may have to contend with. One is self-selection, which has an element of bias and the second is relativity, which does not account for unobserved characteristics. Hence, for better estimation of the impact of technology on crop performance, it is advisable to combine different methods (Ramírez andMcDonald 2006).

Research framework and model specification

This study employed the stochastic production frontier framework. This model is applied to study the technical efficiency of production inputs in relation to outputs. The model operated from the assumption that for any given bundles of inputs, the production process faces two random disturbances: either negative or positive with different characteristics. The stochastic production frontier model was selected for this analysis because of its consideration for technical inefficiencies and symmetric errors in explaining variance of output. The analysis specifies and adopts the Cobb–Douglas production function to estimate the relationship between variance of yield in relation to aggregate inputs. The model is given as

where Y denotes the outputs, X represents the explanatory variable, μ denotes the estimated coefficients, f denotes deterministic variable μ the disturbance term with a zero mean, h the variance function, and ε denotes the error term. Table 1 shows how the parameters used vary from the average (mean).

The stochastic production frontier model is estimated using simple Ordinary Least Square (OLS), maximum likelihood estimation (MLE) and probit regressions. The analysis adopts a three-stage procedure. It begins with the specification of regression model for both the predicted efficiency in technology application and the level of production efficiency with respects to the explanatory variables and random disturbance. The parameters of the model at this stage employ the simple Ordinary Least Square (OLS). The second stage involves calculating least residuals square and in the third stage, we estimate the variances in the functional forms of output levels using linear, logarithms and exponential functions. The decision to add logarithm function in our estimation is based on the fact that it helps improve normality of dependent variable and residuals, thus controlling for any possible outliers. Throughout this procedure, we apply propensity score matching (PMS) to control for bias as a result of observable heterogeneity. The explanatory variables included farmer-preferred technologies which were correlated with the observed crop yield. The technology variables considered in this study are both mean precipitation and mean temperature.

Table 2 presents a summary of the set of new digital technologies used by farmers in South Africa. Majority of the maize farms and farmers were in areas where connectivity is low making full digital integration in real time challenging. Nevertheless, the analysis revealed that most farmers rely on drones, sensors and aerial images among others in their farming practices. For instance, drones help farmers to scout and monitor their crops while sensors, seed drills and aerial images are used to assess soil temperature, plant seeds and gather data, respectively. The output revealed that data are more clustered to the mean as low variation can be observed.

Econometric results on regression coefficients of corn yield data are presented in Tables 3 and 4 for the probability and variance functions of corn production in general. Land size (acre), kernels per ears, kernels per rows and total corn harvested showed positive and significant impacts on the mean of crop output. In terms of estimating the average crop yield with respect to the rates of digital technology application as depicted in Table 4 , land cultivation size showed the largest production elasticity among the technologies applied (p value of 0.003). Technology effects on yield variability also differed with regard to the frequency of technology usage, duration and crop quantity, all indicating significant positive coefficients.

Estimating the impact of technologies on mean and variance of crop yield

Results as shown in Table 5 depict the varying effects of the various technologies by variables. Assessing the effect of technological variables on the mean and variance of crop production indicated that plant health, soil nutrition, crop density, pest control significantly and positively affected the mean yield variability. The effects, however, varied across the value of crop yield. For instance, with respect to how technology adoption on improves plant health ( p value = 0.024) and pest control ( p value = 0.012) in relation to yield volumes, there was a significant positive correlation between adoption and increased crop yield. On the other hand, the results are not statistically significant for soil nutrition ( p values 0.280 and crop density ( p values = 0.41) at a 5% significance level. Crop density variation in relation to yield volumes was generally rated less effective than soil nutrition. These results suggest that technological adoption does not necessarily affects the factors that contribute to change in crop yield. Nevertheless, the analysis indicates an overall positive relation between technology application and crop yields. That is in the long run, an improvement in plant health, pest control and soil nutrition driven by technological adoption leads to an increase in crop yield.

Discussion and policy implications

Technology is considered a vital component in the production function by neoclassical theorists. The neoclassical theory which forms the framework of this study is associated with Robert Solow and Koopmans (1999). The theory posits that growth is dependent on labour force, technology, and the total capital stock of a country. To measure the growth and equilibrium of an economy, the theory adopts the concept of Cobb–Douglas production function. This concept was adopted in the current study to underscore the net positive effects that new technologies and digital infrastructures have on crop productivity. Several studies in the past have explored the potential benefits of the use of digital technologies in agriculture, yet few have focussed on how it relates to smallholder farmers in Africa and its contribution to poverty reduction. By concentrating on smallholder maize crop producers in South Africa, this study relied on panel data to examine the nexus between the application of digital technologies and improvement in crop performance.

While the results from this study confirm findings of other past studies, it distinctively reveals a more versatile and comprehensive approach to the analysis. For instance, it captures the effects of climate variability on the mean and variance of maize crop production by smallholder farmers in South Africa. The study revealed two critical findings in relation to farmer-preferred technologies. First, results show that drones, sensors, seed drills, smart irrigation and aerial images are among the top new technologies mostly deployed in farming practices in rural areas. Second, farmers adopt changes in cultivation practice with respect to the use of these technologies only when they have seen evidence of its positive net effect on production. This particular finding is in line with findings reported by Rotz et al. ( 2019 ) whose study explored the politics of digital agricultural technologies. It also reflects results published by Knierim et al. ( 2018 ) in their study on what drives adoption of smart farming technologies.

The statistical output also makes a strong case for technology adoption as having pronounced effects on aspects of yield. However, the study revealed that technology effects on yield variability may differ with regards to the frequency of technology usage and duration, all indicating significant positive coefficients. For instance, in places where seed drills and smart irrigation techniques are often used in cultivation practices, crop productivity appears to be high. In contrast, where these technologies are barely used, productivity seems low. This particular result is consistent with findings reported by Aboh ( 2008 ) in a study assessing the frequency of ICT tools usage by agricultural extension agents in Imo State, Nigeria. In general, this study has shown a positive correlation between the application of digital agriculture technologies and increased crop performance as also reported in other studies (Evans 2018 ; Klerkx et al. 2019 ; McCampbell et al. 2019; Nguimkeu and Okou 2021 ).

Despite these findings, the analysis has shown that adoption of digital agriculture technologies by itself does not necessarily contribute to increased productivity. This means there are other basic factors such as farm size, quality of seeds and better farming practices among others that influence yield performance. Further studies on assessing the contribution of digital technologies on crop yields will, therefore, require complex research technique.

Findings from this study are subject to the usual limitations of regression analysis which include the issue of attribution. Other limitations were related to scope and data availability. The study scope was limited due to time and resources. In addition, data on crop performance from farmers were difficult to come by. These limitations need critical consideration in future studies. These limitations notwithstanding, the outcome of this research is reflective of the general situation and condition in South Africa rural areas where maize cultivation is a predominant economic activity. Hence, the weaknesses identified did not undermine the study’s relevance and outcome.

The policy inference from this study is that digital technology is increasingly becoming an important solution to the many of the challenges in the agriculture sector. They are allowing farmers to maximise production capacity. The evidence is also clear among commercial farmers in South Africa. Meanwhile among smallholder farmers, the adoption of technologies is still slow. To increase the uptake of smart farming technologies among local farmers will require the design of policies and programs that increase farmers ICT skills and ensure availability, accessibility and affordability of digital techniques. Policy makers should also create enabling environment that will allow the private sector to invest in agriculture smart technologies to increase its availability to small-scale farmers. Findings from this study also highlight the importance of increasing digital inclusion amongst farmers as a measure to increase their visibility in the wider agriculture value chain system.

This study sought to estimate the benefits of digital technology application on maize crop production with a focus on rural South Africa, using panel data from 2011 to 2021 from World Bank’s open data source. The study employed stochastic production frontier framework which assesses technical efficiencies of production inputs in relation to outputs. The paper further adopted the Cobb–Douglas production function to estimate the relationship between variance of yield in relation to aggregate inputs. The study revealed two critical findings in relation to farmer-preferred technologies. First, results show that drones, sensors, seed drills, smart irrigation and aerial images are among the top new technologies mostly deployed in farming practices in rural areas. Second, farmers adopt changes in cultivation practice with respect to the use of these technologies only when they have seen evidence of its positive net effect on production. The statistical output further showed a strong positive relation between technological adoption and yield increase. Notwithstanding these findings, it was noted that the mere adoption of digital agriculture technologies by itself does not necessarily contribute to increased productivity. Therefore, to assess to holistic impact of digital technologies usage on crop performance, it is important to consider factors such as farm size, quality of seeds and better farming practices among others. Against this backdrop, it is recommended that future studies exploring the nexus between digital technology application and crop performance must use larger sample with complex research technique.

Data availability

The datasets generated during and/or analysed during the current study are available from the corresponding author on reasonable request.

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The author acknowledges scholars who have written on impact of digital technologies on Africa’s agriculture sector.

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Boakye, A. Estimating agriculture technologies’ impact on maize yield in rural South Africa. SN Bus Econ 3 , 149 (2023). https://doi.org/10.1007/s43546-023-00530-4

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Received : 12 October 2022

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DOI : https://doi.org/10.1007/s43546-023-00530-4

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