The Farm Analysis Tool

Publicado: 01 Febrero 2021
Última edición: 31 Mayo 2021

The Farm Analysis Tool allows for conducting an assessment on farm profitability. It provides entry sheets for adding various farm expenses and incomes and automatically calculates the farm profit margin. It also highlights which fixed and variable costs are most prominent and where savings could have a significant impact. The tool generates a Farm Income Statement, which can be presented to a lending institution. The tool is useful for:  

 

  • Determining the current level of profitability (pre-investment base line);
  • Determining the anticipated profitability of the investment (postinvestment projection). 

Classifications

Categorías
Comunicación, divulgación, y construcción de conciencia
Educación, entrenamiento y otras actividades de desarrollo de capacidades
Medios de vida sustentables
Intervenciones técnicas e infraestructura
Escala de aplicación
Local
Global
Fase de la solución
Implementación

Factores favorables

Availability of data on cropping patterns, irrigation techniques, pumping systems, other available pumping alternatives, market, current loan products available for potential SPIS customer, water and energy provision regime in the region, support/advice structures and subsidy schemes available for the region, long-term environmental impact assessment; an annual re-evaluation of farm profitability

Lecciónes aprendidas

A solar powered irrigation system (SPIS) is generally a long-term investment choice to reduce farm operating expenses or increase agricultural productivity or both. This requires an understanding of the farm enterprise, as a business, in terms of all costs and incomes. 

 

Even when the profitability of the farming enterprise is confirmed, this does not automatically imply that an investment into an SPIS is the most sensible choice. This is especially true if other pumping technologies are readily available on the market. A Diesel or Grid-connected electric pump might be more feasible where water pumping is only required for a limited time per year. The Payback-Tool can support in this decision. 

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