Economic Opportunities:
Commercial farming in South Africa is categorised into three clusters, namely: small, medium and large scale commercial farming. The common thread amongst all of these clusters is that they all produce for markets with a view to maximise profit.
The Department’s definition of a commercial farmer is informed by the Department of Agriculture, Forestry and Fisheries (DAFF) which defines a commercial farmer as someone that produces agricultural products exclusively for markets, to maximise profit with a turnover of between R500 000 – R 1000 000 per annum. Such a farmer is large enough to generate income sufficient to support his or her family.
The following requirements used to determine / classify a farmer as commercial:
- Access to formal markets (domestic and/or export);
- Existence of sales and production records;
- Ability of the farmer to reinvest profits into the business; compliance with tax and labour laws; and
- Existence of current and updated business plans to guide and inform operations.
We view these as critical factors for any business with commercial inclination.
Commercial farming in South Africa is categorised into three clusters, namely: small, medium and large scale commercial farming. The common thread amongst all of these clusters is that they all produce for markets with a view to maximise profit.
The Department’s definition of a commercial farmer is informed by the Department of Agriculture, Forestry and Fisheries (DAFF) which defines a commercial farmer as someone that produces agricultural products exclusively for markets, to maximise profit with a turnover of between R500 000 – R 1000 000 per annum. Such a farmer is large enough to generate income sufficient to support his or her family.
The following requirements used to determine / classify a farmer as commercial:
- Access to formal markets (domestic and/or export);
- Existence of sales and production records;
- Ability of the farmer to reinvest profits into the business; compliance with tax and labour laws; and
- Existence of current and updated business plans to guide and inform operations.
We view these as critical factors for any business with commercial inclination.
