Business skills: The missing link in agriculture

AFRICA: ACROSS Africa, agriculture is often described as the backbone of the economy. Governments and development partners speak of food security, climate-smart farming and the potential of agribusiness.

Yet, one critical ingredient is frequently overlooked: Business skills. For decades, agricultural development has focused heavily on production. Training programmes teach farmers how to improve yields, manage pests, conserve soil and adopt improved seed varieties.

These are essential, but a bumper harvest does not automatically translate into a successful farm business. Many farmers and young people entering the sector can grow crops but struggle to turn them into profit.

Agricultural transformation will remain elusive if farming is treated purely as a technical activity rather than an entrepreneurial venture. From planting to marketing, farmers need to understand production costs, cash flow, pricing, record-keeping and risk management.

They must also negotiate with buyers, identify profitable market segments and decide what to grow based on market demand rather than habit. These business skills are rarely taught alongside agronomic techniques. The result is a sector with enormous untapped potential.

Farmers may produce abundantly but struggle to secure favourable prices. Cooperatives face challenges in governance and financial management, while agribusinesses fail not necessarily because of poor soil, but because their finances are poorly managed.

Too much attention has been given to production, with insufficient emphasis on business operations. A shift in mindset and training is therefore necessary.

Programmes that integrate business education into agricultural development demonstrate the importance of combining technical knowledge with entrepreneurship.

One example is the model used by NorgesVel, which emphasises practical entrepreneurship and market-oriented thinking alongside farming techniques. Rather than treating farmers as passive recipients of assistance, this approach regards them as business owners who need the tools to plan, invest and expand.

It focuses on strengthening their ability to manage money, understand markets and make strategic decisions. Although it is not a complete solution, it points towards a more effective approach to agricultural development.

Young people are particularly affected by the business skills gap. Many view agriculture not merely as a livelihood but as an investment opportunity. They recognise the potential of value addition, agricultural technology and specialised markets.

However, they may find training programmes that concentrate on yields and pesticides while giving little attention to profits, losses and business planning. If young people are to see agriculture as an attractive career, training must also address the commercial realities of the sector.

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They need to understand how to identify opportunities, manage risks and build sustainable enterprises. This does not mean abandoning technical training.

Instead, business education should complement it. A farmer who knows how to grow maize and price it profitably is better equipped to withstand market challenges than one who understands production alone.

Similarly, a cooperative that combines effective storage practices with sound financial management is more likely to remain viable. The transformation of agriculture will not result from a single innovation or policy.

It requires a generation of farmers who think and operate as entrepreneurs. Achieving this will demand deliberate investment in business skills at every stage, from vocational training and agricultural extension services to mentorship programmes for young agripreneurs.

Agricultural institutions, training providers and development partners should therefore make business skills an integral part of farmer education.

Practical training in budgeting, financial records, marketing and investment decisions can help farmers make informed choices and improve the returns from their work.

The seeds of change are already being planted. What remains is to nurture them with the right knowledge. If the business side of farming continues to be neglected, the sector will keep generating potential without fully delivering prosperity.

The missing link is not a mystery. It is business skills, and the time has come to make them central to agricultural transformation.

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