ABSTRACT
Farm management economics provides the general disciplinary basis for farm-level systems analysis. Agricultural inputs provide farmers with the feed, seed, fertilisers, credit, machinery, fuel, chemicals, etc. that they need to operate. Net present value (NPV) is the present value – the value today – to the farmer of projected cash inflows less the present value of the investment’s projected cash outflows. NPV works on the premise that we will likely make an initial investment at the onset of a ‘project’. Excel, as well as specialised farm management software, has built-in functions for investment analysis, including the calculation of NPV and internal rate of return analysis. Insurance is often one of the most overlooked aspects of running a farm business. Organic farms often sustain higher species diversity and cultivate locally adapted varieties. Food security consultants have promoted wildlife farming as a way to boost rural incomes and supply protein to a hungry world.
