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Running a farm and growing crops is not easy. It takes many years of hard work as well as lots of hard-earned money to prepare crops for harvest. There is a whole list of things that can go wrong and ruin the yield for a farmer. Drought, heavy rain and flooding, strong wind and hail can all have a devastating effect on the harvest. Because the weather has such a strong impact on their livelihoods, farmers are motivated to develop different strategies to manage weather risks. Agricultural risks are also the main cause of food insecurity, so improving conditions for smallholder farmers would reduce global poverty levels.   Connection Between Weather Risk and Index Insurance Agricultural insurance is designed to protect farmers from events that are entirely out of their control, such as adverse weather and price drops. From a weather risk management standpoint, there are two main types of risk to consider: Sudden events (like localized windstorms or hail) Long-term events that occur over a continuous period (like drought) In order to successfully protect their crops from these types of events, farmers arrange crop insurance to get a compensation in case of crop damage. Main weather-related risks affecting agriculture   This type of risk mitigation tool can best be applied in an area where there is a strong connection between crop losses and adverse weather events. Before managing weather risk, farmers have to assess it first. Risks are assessed by determining three key points: Hazard—type of risk (weather) Exposure—location of crops Vulnerability—an estimation of the impact the risk would have on the crops affected by it; varies according to the crop growth stage   In order to successfully protect their crops from bad weather events, farmers arrange a risk management strategy with an insurance company, called weather index-based insurance. Weather risk mapping is a practice that enables risk identification, assessment, and management. It can be assessed through a combination of the following parameters: Weather risks (wind, temperature, rainfall, hail); called an index Type of crops subject to those risks (oilseed crops, vegetables, trees, etc.) Number and type of producers that grow those crops Location of weather stations; form a secure network that is different from country to country Agro-climatic zones; gathered from satellite imagery (gives information about how different factors and attributes relate over space and time) Altitude     Weather index insurance relies on historical and current weather data. Current data is measured by local weather stations and they record at least 20 years of historical data, which is used when insurance companies are trying to assess weather risk.   An Effective Risk Management Tool for Farmers With all of the above said, we can say with certainty that weather indexing is a broad area, and it is a crucial element in defining what type of insurance farmers want to use. It also plays a big role in calculating the cost of the premium. Besides risk management in the form of crop insurance, farmers can apply other risk mitigation measures to minimize yield losses. For example, if they know that their farm is located in a high-risk area of drought, they can start using crops to increase resilience (e.g. appropriate crops, varieties and cropping patterns; irrigation) and take proper adaptation measures in order to avoid risks. Also, if a certain crop is susceptible to extreme weather conditions and diseases, farmers should redirect their production to a more sustainable crop that will bring more profit in the long run. Insurance companies use a strategy defined for a certain type of risk (in this case weather) called weather index-based insurance and offer it to farmers as a risk mitigation tool. If you are an insurance company and you wish to learn how you can greatly prevent inaccurate assessments and wrongful damage compensation, please contact Agrivi Sales team. Contact UsNOW       Text sources: FARMD || IFAD   Image sources: FARMD

Running a successful farm business is not an easy task. Farmers nowadays have to be very skilled in order to make a profit. They have to be successful managers, accountants, consultants, scientists and overall, very good at performing all field activities. In the era of modern agriculture, farmers really do have all the aforementioned attributes. However, one thing can significantly determine the path of their farm performance. This is inventory management. Although it doesn’t sound like a big deal, proper farm inventory management is the most important value of a successful farmer.    Poor Inventory Management Leads to Cash Flop Proper inventory organization is a weakness for every farmer. Caught in extensive farm organization, farmers often forget about this important feature in farm management. The consequences of poor inventory management can be significant to both farm productivity and profitability. The most common example of the impact of inventory organization on crop production is at the time of crop sowing. Poor inventory organization leads to a delay in farm activities, causing the decrease of farm productivity and profitability Every farmer knows that most crops, especially arable, need to be sown or planted at the specific time of the year. For example, let’s take sowing of wheat in Europe, which lasts only two to three weeks. In order to provide the best conditions for crop growth, sowing needs to be performed during that period. If a farmer starts sowing wheat and then suddenly realizes that he is running low on seed stock, he needs to pause sowing and make the purchase. Meanwhile, certain unfavorable conditions may occur. There is a huge possibility of rain period and lower temperatures that can greatly impact the germination as well as the final yield.   Another common example of poor inventory management is in the harvest period. Not having insight into the real inventory stock level, a farmer cannot prepare an adequate quantity of bags, boxes or pallets for fruit storage during the harvest. The time needed to make a purchase of stocks prolongs the time of harvest thus affecting the fruit quality and final yield. These two abovementioned examples are just a drop in the ocean of similar situations of improper farm inventory organization.   Still Don’t Have a Suitable Tool for Inventory Management? Having a farm production means that there are certain activities constantly in progress. However, many of them require tracking of inventory stock levels. In other words, farmers have to be completely prepared for each activity. Otherwise, every lack of stock may lead to an additional delay in performing activities. Agrivi farm management software allows you to easily manage your inventory To avoid this scenario, farmers have to organize and regularly check their inventory stock. There is a perfect tool that facilitates proper management of farm inventory—Agrivi farm management software. Its real-time inventory management gives farmers an actual inventory level at any moment. By using Agrivi, farmers can get two most important values for successful management of their farm production: Instant inventory overview of all items currently in stock, with a single click Set inventory alarms for all the key products that have to be available at any moment and by doing so, avoid running out of stock   Real-time inventory overview with Agrivi farm management software Organization is the key to profitable farming. Hence, every successful farmer knows the importance of timely organization of all farm activities as well as his inventory.       Instead of managing your farm by gut feeling, make data-driven decisions by using Agrivi farm management software. Make your farm production easier than ever, with this powerful farm assistance tool. Sign up in Agrivi today. TRY NOWfor free

Today, the agriculture is expanding rapidly, and small farmers are having more and more difficulties with accessing the market and fully achieving profitability. In the same time, larger companies involved in crop supply or food processing, are in great need of a reliable source of crops for further sale or for processing. In order for both sides to obtain some sort of benefit, they often establish a relationship, in the form of a written contract, where each side has to fulfill certain conditions. For a contract to be successful, it requires a long-term commitment from both sides. This common practice is called contract farming. Farmers must sign a contract to sell their harvest to the sourcing company in exchange for inputs, technical assistance, and financial help   Contract farming can be viewed as a partnership between farmers and processing companies or cooperatives, where the farmer is obligated to supply the agreed quantity and quality of crops, in a specific time period. In return, the processing company agrees to buy off the crops from the farmers, at a prearranged price. Farmers must sign a contract to sell their harvest directly to the sourcing company, and in exchange, they get support in the form of agricultural inputs, technical assistance, and financial help. Contracts will only work if both parties meet the required conditions and if they believe that by signing the contract, they are creating a win-win situation for themselves.   The Basic Formula for a Good Contract As we heard many times before, the health of a supply chain is the health of the company. Many stakeholders in the agricultural value chain (e.g., retail chains, wholesale traders, cooperatives) source crops from farmers and they all have two final goals in mind—achieving sustainability and profitability. But like we discussed in our previous blogs, successfully managing networks of farmers, regardless of their size, can often be challenging work and if they're not managed properly, the crop sourcing company can face financial setbacks and losses. A transparent contract and compliance with the agreed terms is a precondition for the successful long-term sustainability of contract farming Therefore, a long-term partnership with the growers is achieved by creating a transparent and commercially viable contract, that will be satisfactory to both parties. First and foremost, contracts should be flexible and provide clear, simple specifications regarding three key areas: Quantity; specifying the amount of the desired product (crop) Quality; agreeing what quality levels and standards the product needs to meet Price; stating a specific price for the crops, set by the farmers Secondly, it should also have a defined risk management strategy in case of extreme events such as high market prices or bad weather. By creating the contract, a processing company wants to ensure contract execution that meets their targets. If the farmers fulfill the desired targets stated in the contract and comply with the agreed conditions, then the crop sourcing company can be sure that the supply chain is healthy and prosperous. Contracts should be flexible and provide clear and simple specifications   Signing a Contract Doesn't Always Mean Compliance Like in any business deal, there are a number of risks associated with contract farming. Common problems include farmers selling to another crop sourcing company, or using inputs supplied by the company for other purposes. From the other side, a company sometimes doesn't buy products at the agreed prices or in the agreed quantities. If farmers don't deliver the contracted quantity and quality level of the product, the sourcing company is forced to purchase outside their usual network of growers at a more expensive price, and that greatly affects the company's budget.   This type of conduct is called breach of contract, and as a result, the trust between farmers and the sourcing company is broken, so future business activity is no longer possible. This being said, it is obvious that a clear, transparent contract and compliance with the agreed terms is a precondition for the successful long-term sustainability of contract farming. Managing a network of farmers can be quite a handful, but one agricultural software has a perfect solution—Agrivi farm management software. It provides sustainable growing practices and better collaboration with the farmers, which ultimately improves the benefit for both growers and sourcing company. If you have difficulties with managing your farmer network, don't hesitate to contact our Sales team and explore different Agrivi industry-focused solutions. Contact UsNOW     Text sources: FAO

Whether a small or large, private or leased, a field is the baseline for every crop production. In agriculture, a field represents an area of land, cultivated in order to grow different types of crops. In other words, everything that happens on a farm starts with a field. For that reason, a field is one of the most important farm assets, as well as one of the main components in farm management. For every successful farm manager, a field is much more than just a land area For every successful farm manager, a field is much more than just a land area. Behind every field, there are several valuable pieces of information that are crucial for a farmer who wants to practice intelligent field management and stay on top of his business. These are:   1. Exact field location Knowing the exact field location (field coordinates) enables precision weather tracking. After all, farming is an unpredictable business in which unfavorable weather represents one of the main threats to farmer’s yield. Therefore, successful farmers, oriented towards intelligent field management, always track weather conditions based on the coordinates of their fields.   2. Size of the field and its utilization Besides field location, size of the field and its utilization (the percentage of planted crops on the field) is also a very important piece of information to every farm manager. One of the main reasons for that is because the size of the field, as well as its utilization usually dictates which crops can be grown in the field. For instance, orchards are usually raised on smaller surfaces while arable crops usually cover a larger land area. On the other hand, information about field utilization is essential for making plans regarding new crop productions, particularly in the case when the part of the field is already occupied with some other crop.   3. Crop rotation Farmers who practice intelligent field management always know which crops are grown in their fields during the last few years. That way, they can easily make plans about the crops that will be planted in the future.   4. PH value and soil type One of the most important facts about every field is its soil type and pH value. Soil type determines which crops can be grown on a specific field (some crops prefer clay while others are more appropriate for sandy soils). Moreover, soil type will also determine water management on the field (for instance, sandy soil requires frequent irrigation with smaller amounts of water due to its high porosity). Together with soil type, successful farmers who practice intelligent field management, manage their crop production based on the results of the chemical analysis. PH value is, therefore, one of the most important pieces of field information that directly affects nutrient management, thus affecting crop performance and final yield.   Knowing the aforementioned facts about fields is essential for practicing intelligent field management. However, having all the data about the fields in a single place is even more important for achieving a successful farm business. In the picture below, there is an example how successful farmers manage their fields in Agrivi farm management software.   Intelligent field organization in Agrivi farm management software   Recognized by farmers all over the world, Agrivi is one of the top farm management solutions on the market. Farmers who use Agrivi never miss a single detail about their fields and crop productions. So, sign up now and discover the beauty of intelligent field organization with Agrivi. TRY NOWfor free

Soil is the fundamental resource for every crop production. However, to achieve successful and sustainable farming, the soil needs to be healthy. In other words, this is the primary condition for abundant and quality yield. Aiming to be successful, a farmer needs to carefully manage soil health. But, what does this mean? The soil is a live media full of living organisms such as fungi, bacteria, worms and millions of other microscopic organisms. They all play a vital role in the creation of the organic matter which reflects on soil conditions and finally its health. So, by managing the soil organisms properly, a farmer is on the right path to achieve a successful soil performance.  Soil performance can be increased by managing several indicators. These are as follows: Macronutrients Micronutrients Soil pH Organic matter Soil moisture Soil salinity Healthy soil is the basis of successful farming   Plant Nutrients as the Main Factor of Soil Performance To grow healthy plants, a farmer has to ensure a good source of plant macro and micronutrients. Nutrients are plant's food and that way, plants are able to achieve their genetic potential in the form of high yield. Although plants require several nutrients in large amounts such as nitrogen (N), phosphorus (P2O5), potassium (K2O), other nutrients are efficient in even small amounts such as iron (Fe), boron (B), zinc (Zn), and manganese (Mn).   However, one thing is very important. Adding plant nutrients to the soil will not guarantee a good soil performance. It can even cause an opposite effect such as lower yield, slower plant growth or plant drying. Good soil conditions can be achieved only if a farmer knows current nutrient levels. Therefore, to ensure a good soil performance, it's mandatory to make a chemical soil analysis prior to the fertilization. Applying the right amount of fertilizers to plants, allows a farmer to save his money and, more importantly, practice sustainable farming and protect the environment. Regular chemical soil analysis is an essential factor of good soil performance.   The Optimum Soil pH—A Formula for Farmer's Success After plant nutrients, soil pH is the second most important factor for good soil performance. Ranging from acid to alkaline, it determines the success of plant growth and final yield. For that reason, managing a soil pH is a key point to every farmer who strives to productive farming. Every plant has its optimal pH range with favorable conditions for its proper growth. Therefore, inadequate soil pH reduces the accessibility of certain plant nutrients, resulting in lower plant growth and reduced yield. So, regardless the amount of applied fertilizers, if soil pH is not optimum for a certain plant, the yield will fail. In conclusion, regular chemical soil analysis is the best way to achieve a good soil performance.   Organic Matter in the Service of Nutrient Storage Organic matter is a soil layer full of organisms vital for proper soil performance. It contains both living and dead organisms as well as humus. Organic matter serves as a plant nutrient storage, making it the core of the soil. Soils with inadequate nutrition and tillage management become poor thus affect the plant's growing conditions.   Manage Soil Moisture to Prevent Yield Loss For proper growth, besides soil, nutrients, and light, plants also need water. Optimal water levels in the soil ensure good plant growth. However, if there is a lack or surplus of water in the soil, the plant growth will be affected, causing stunted growth, dried or diseased plants, and low yield.      To ensure good soil performance, proper tillage is the only way for managing water levels in the soil.    Optimal Soil Salinity Boosts Plant Growth Soil salinity is the salt content within the soil. As a naturally occurring mineral within soil and water, salt affects the growth and vitality of plants. Soil salinity determines the availability of plant nutrients. Excessive fertilization leads to the increased soil salinity, thus affecting the plant growth. For that reason, it's crucial to fertilize crops based on previously measured nutrient levels in the soil.   Based on soil performance indicators, a farmer has a clear insight into soil's health and actions required to ensure it remains in good shape. We can conclude that having only one of the aforementioned soil KPIs outside their optimum, leads to lower plant quality and yield.  Don't let your crop production depend on luck. Be the one who determines the path of successful farming by measuring soil regularly to get the right information about soil performance factors. TRY NOWfor free

Managing a farm without a vision often results in wandering off the course. Having a vision means that a farmer knows how he imagines his business is going to look like at some point in the future. In other words, the vision of a farm business is generally the big picture of everything that a farmer wants to achieve in a certain period. Having a business vision is one thing. Yet, knowing how to achieve the vision is another thing. For this purpose, farmers set their goals. Business goals serve farmers as a guidance towards their vision. Setting the goals can be a true turning point in farm management. Hence, the goals determine the success of the entire farm business. “Managing a farm without having a vision often results in wandering off the course.”   Success Comes to Goal-Oriented Farmers Crop production is a tough business in which success is not always guaranteed. However, farmers who are persistent in achieving their vision will always find a way to increase a chance of boosting their business performance. Worldwide, there are many farmers who are more than satisfied with their work results. These farmers enjoy all the benefits of their crop production, such as high yield, quality crops, good market price, ensured customers, and finally a profitable farm business. The aforementioned farmers have one thing in common; they are goal-oriented. Setting SMART goals is one of the most important qualities of every successful farm manager. The acronym SMART stands for the following five characteristics: 1. Specific A specific goal is well-defined and therefore, exactly oriented towards a precise business area. In practice, increasing farm sales is a true example of focused and specific farm management goals. On the other hand, improving business results is definitely not an example of a specific goal. The reason for that is because a term business results can be understood differently (e.g. as productivity which is reflected in yield or profitability which can be reflected in farm sales). 2. Measurable For a farmer setting the goals which can be measured, means having the possibility to check his progress and compare achieved results with planned. Besides that, measurable goals represent a very good basis for future decision making. After all, numbers are essential for quality farm management. One example of setting a measurable goal is increasing farm sales by 15%.   3. Assignable (or attainable) In order to make sure that the goal will be realized, every successful farm manager will determine a person responsible for its realization. This is particularly important for farmers who have a few employees. For instance, if the goal is to increase farm sales by 15%, a farmer can assign his sales manager as the responsible person. 4. Realistic (or relevant) It’s extremely important that business goals are achievable. In response to that, when setting a goal, a farmer should carefully consider his current business situation. Increasing farm sales by 95% is not so realistic. Yet, increasing farm sales by 15% is a far more realistic goal.     5. Time-bound The goals must be defined within a time frame. Otherwise, they will fade into the background due to some unexpected events. When a farmer sets a time frame for the realization of his goals, he is motivated to accomplish them. More importantly, the goal with the time frame is more realistic. Increasing farm sales by 15% until the end of the year is a perfect example of a time-framed goal. “One of the most important qualities of every successful farm manager is setting SMART goals.”   Setting SMART goals is an excellent way to tackle the challenges in farm management. Generally, SMART goals are just a drop in the sea to achieve optimal business performance. Still, it’s definitely a good beginning for every farmer who wants to improve his production and bring about some significant changes. If you are a farmer who wants to succeed, then set SMART goals. But most importantly, make sure you are on the right track with their realization. Therefore, Agrivi farm management software can be of great help. So, stop wandering off the course and let Agrivi guide you as it does thousands of other successful farmers.   TRY NOWfor free     Text sources: Michigan State University

When talking about farming, it’s important to mention that farmers are often faced with the lack of time. Striving to manage all farm activities timely in order to ensure the best possible outcome, there is not much time left for planning and, in the end, analyzing the complete crop production. For that reason, organization is an essential component of successful farming. Generally speaking, a well-prepared farmer is a successful farmer. In other words, the organization of all farm activities, as well as farm materials and other farm processes will enable a better flow of the entire crop production. “Organization of all farm activities before the season onset is crucial for successful farming.”   Top 3 Reasons Why You Should Organize Farm Activities It’s very important to plan and organize all farm activities before the season onset. You are probably asking yourself why is this so important? Well, there are three main reasons why every successful farmer should organize all his farm activities in advance. These are as follows: A farmer knows exactly which tasks he is going to perform at any moment That way a farmer knows exactly when he plans to do soil tillage, how many types of soil tillage he is going to perform, how many days the soil will be empty prior the planting of crops and other necessary activities. Basically, all tasks are chronologically arranged to a farmer, making him more adjustable to any unexpected events.  Farmers are able to plan and track all farm activities in Agrivi farm management software   Based on the list of planned tasks, a farmer can organize his time in addition to other important activities Since farming is often a varying job, having the list of all planned tasks, keeps a farmer in line with his crop production. A farmer who plans all activities knows when and for how long he is going to use some machinery, farm materials, and seasonal workers. That way, a farmer can prepare himself in advance to rent or buy necessary machinery, purchase farm materials as well as apply for additional workers.  “Farmers who organize farm activities can manage their time easier.” “Organization of farm activities positively reflects on farm profitability.”   According to the planned activities, a farmer can also plan his finances By organizing farm activities, a successful farmer can plan how much farm materials he needs to buy. In fact, he can plan to purchase the exact amount of seeds, fertilizers, pesticides and other items. More importantly, knowing which machinery will be used, a farmer can plan the exact amount of money for purchasing or renting some. Finally, he can also plan his finances for work salary. Making a purchase before the season onset, allows a farmer to save his money. This also greatly reflects on his profitability.   Planning Farm Activities Is Half the Work Based on the aforementioned, we can conclude that planning farm activities is half the work. But what is more important, a farmer has to have a set of his best farm practices according to which he will make a plan for the upcoming season.  So, create your season plan and let Agrivi farm management software help you organize all your activities. Because only an organized farmer is a successful farmer!   TRY NOWfor free

Agriculture is the main source of income for rural areas in many countries. It is expected that by 2050, the global population will reach about 9.6 billion, so food production must be increased up to 60% in order to feed every mouth. New technological advancements in the agricultural revolution known as precision farming, are intended to solve the global food security challenge. Due to climate change, farmers are forced to insure their crops, in order to get compensation for yield losses. By bringing data-driven decisions and following best farming practices, the goal of eliminating world hunger can and will be achieved.    Extreme Weather Risk Demands Crop Insurance Although farmers have all the tools essential for producing enough food, they are often limited by external difficulties. Farming in the outdoor can be very challenging because farmers depend on environmental conditions, many of which are out of their control. Most common difficulties include uncertain weather conditions, and farmers never know when their land will be affected by hail, drought, frost or extreme wind which can ultimately destroy their yield. Having in mind that crop production is the main source of income for many farmers and that bad weather is out of their control, they have to insure their crops. In other words, they will develop a risk management strategy with a certain insurance company that ensures a certain compensation in case of crop damage. “Since crop production is the main source of income for many farmers, they arrange crop insurance to get a compensation for the crop damage.“ How does it look in practice? A farmer plants a vineyard. Soon after vegetation starts, young leaves are threatened by early season frost. Then, after flowering, at the time of fruit setting, there is the possibility of hail. Not to mention a huge risk of pest damage during the entire season. All these events can damage the crop and drastically reduce the yield or even cause complete yield loss.  Ultimately, a farmer can’t avoid these factors. Agricultural insurance is the only safe way to financially compensate farmers who have suffered yield losses.   Digital Technology in the Service of Farmers Due to climate change, farming has become a very challenging job. Lately, it has been responsible for unpredictable weather events and resulted in significant yield loss and overall changes in farm management. Accordingly, crop insurance became very popular among farmers. Since digital technology became an inevitable part of precision agriculture, insurance companies can now offer something new to farmers; a more precise crop damage indexing and therefore more efficient risk management.  “Agrivi software offers insurance companies a risk management tool to decrease financial risk of their insurance policies. “  Agrivi farm management software is a unique digital agricultural solution, that offers insurance companies one central platform for reducing the risk of their agricultural portfolio and weather indexing. How can insurances benefit from using this risk management tool? By using Agrivi software in a farmer’s agreed agricultural policy, insurance companies gain insight into: Weather indexing made especially for a particular farmer, according to the overview of historical agricultural risk on his fields Farmer segmentation based on risk, whether it be adverse weather or pest risk The veracity of the farmer’s claims of field damage, by using satellite images to identify the exact percentage of damaged field Easy overview of all farmer’s fields by real-time insight into his crop production from one central place; that way a farmer is not obligated to send reports about any changes in his fields Sending automated alerts to farmers to prevent hail and frost damages on fields    “Turnkey” Solution for Smart Insurance Management To insurance companies, Agrivi offers a central place for all activities related to agricultural risk management. In other words, it provides a “turnkey” solution which allows insurances to decrease financial risk of their insurance policies. By giving their policyholders an efficient farm management tool that helps them achieve optimal yield and by conducting satellite monitoring, insurance companies can greatly prevent inaccurate assessments and wrongful damage compensation. Therefore, Agrivi represents a cost-saving factor and offers long-term profitability increase. Crop insurance is purchased by agricultural producers to protect themselves either against production- or revenue-related risks. Either way, they need to pay the fixed amount of the policy. That makes insurance companies a crucial element in the food supply chain. If you are an insurance company looking to maximize profits and use new technologies to improve production efficiency, contact our Enterprise Sales team. Contact Us     Image sources: Liv-ex 

Machinery is an integral component of agriculture. Today, most farmers couldn't even imagine working in the field without using some type of farm machinery. Tractors, combines, agricultural trailers, sowing machines, various farming implements, sprayers and many other types of machinery significantly facilitate everyday farm practices, from soil preparation to harvest. The real reason why farmers use various types of farm machinery is that they want to reduce overall manual labor and manage their crop production more efficiently. What is even more important, by using farm machinery, farmers can save a lot of time and focus on important aspects of their business.   Machinery is an essential farming asset for both, large and small farmers. Moreover, different types of farm machinery are used in all types of crop productions, from conservation to no-till farming. Each production type has its own approach to machinery management. While no-till farmers practice minimal machinery usage in order to prevent soil compaction and preserve its quality, conservation farmers use machinery without any limitations. Every farmer has a different approach to machinery. However, despite their differences, all farmers have one thing in common: they greatly depend on machinery. “Despite their differences, all farmers have one thing in common: they greatly depend on machinery.“   Information Hidden Behind Machinery Usage Tracking machinery usage is important for all farmers who use one or a few types of farm machinery. By tracking machinery usage, a farmer can get two pieces of valuable information for each machine: 1. Total work hours 2. Total amount of fuel consumption Whether it's purchased or rented, machinery represents a significant farm cost. For that reason, the frequency of machinery usage is one of the main factors when deciding whether to rent or purchase farm machinery.  Besides that, according to the number of total work hours of each machine, a farmer can easier decide the right time for the maintenance. Moreover, planning and distribution of resources is much easier for farmers who track machinery usage per each farm activity. That way a farmer knows exactly how many work hours of machinery is required for a certain farm activity. “By tracking machinery usage, a farmer can get two pieces of valuable information. “   Another important aspect to consider regarding farm machinery is its fuel consumption. As an unavoidable input required for machinery usage, fuel also represents a significant farm cost. Therefore, it's extremely important for a farmer to stay on top of fuel consumption for each piece of farm machinery and each farm practice. The picture below shows the example of tracking machinery usage in Agrivi farm management software. Here you can see that Agrivi farm management software provides farmers all essential information delivered from tracking machinery usage.   Successful farmers carefully manage even the slightest detail of their business, including their machinery. If you want to join thousands of successful farmers who leave nothing to chance, sign up in Agrivi and let Agrivi farm management software help you stay on track with your machinery usage, as well as the entire farm business. TRY NOWfor free     Image sources: Global Harvest Initiative

In a highly competitive market, every farmer is chasing his own opportunity for success. Not only are farmers striving to produce high yield and deliver quality crops to the market but also, sell their goods and finally, achieve higher profit. Farmers are therefore faced with a challenge to survive on the market. ‘’In a highly competitive market, every farmer is chasing his own opportunity for success.‘’   The Relation Between Supply and Demand Supply is a term that describes the number of goods or services that all producers are ready to offer on the market at a given period and price. On the other hand, demand refers to the number of goods or services that customers are ready to buy at a given period and for a certain price. ‘’The relation between supply and demand will determine the market price of goods or services.’’   Regarding the relation between supply and demand, a farmer should know two important things: 1. The relation between supply and demand will determine the market price of goods or services What does this mean for a farmer? For example, in a case where a farmer sets a low price, the demand for his product or service will increase. Oppose to that, if a farmer sets a price which is too high, the demand will decrease. 2. The market price will determine the supply and demand of products or services If the market price is high, the interest of producers for a certain product or service will increase. In other words, the supply will increase. Also, if the market price is low, the interest of consumers increases, which means that demand increases. ‘’The market price will determine the supply and demand of products or services.’’   Let’s Find a Balance Between Supply and Demand Supply and demand, as well as market prices, will rise and fall until they achieve a balance, which is called market equilibrium. For example, if orange prices are too high, most consumers will choose another fruit at a more affordable price. As a response to declining sales, farmers will have to lower the prices until the demand for oranges increases again. When the demand for oranges is balanced with the supply, the market is at its equilibrium.   In a market that is not controlled, supply and demand dictate the market price of goods or services, as well as the flow of sales. By doing so, this basic economic law directly affects farmer’s profitability, and therefore the success of his business.   If we look at the big picture, supply and demand regulate the entire market competition. For this reason, every farmer driven by a profit should keep up with the current situation on the market and turn the information provided by a supply and demand into profit.     Text sources: NDSU

Each farmer is running his own race to utilize the soil in order to produce crops. Some farmers grow crops only to feed their families. However, a vast majority of farmers cultivate the soil to earn their livelihood and finally, make a profit.   Turning crops into profit is one of the most challenging parts of farm management. One of the key processes here is sales. Selling the crops is one thing that sets all other farm activities in motion. After all, sales is the only activity that actually brings money to the farm. Not only this, it also provides valuable information to a farmer.   Why Is Sales a Crucial Indicator for a Farmer? Did you know that there is a quite interesting story behind every sales invoice? Tracking sales can provide several benefits for a farmer. They are as follows: 1. Information about the buyer Tracking sales reveals information about the profile of our customers. For example, whether the customers are large suppliers, supermarkets or individuals. This is essential in order to understand their needs and manage the sales strategy in the future.   2. The date of transactions Crop production is a seasonal business. For this reason, tracking the time in which most sales occur, can help farmers organize the activities that are related to sales (such as packaging, transport, marketing, etc.) and plan their income. By doing so, some farmers will plan most of the sales immediately after the harvest. On the other hand, some farmers will store their crops and delay the sales for the following months, or even the next year. In the picture below, is an example of tracking sales in Agrivi farm management software. The picture shows the case when sales is managed from July to December. According to that, a farmer knows that from January until July, there is plenty of time to focus on other activities, instead of managing sales and customers. On the other hand, in the second half of the year, the sales is heating up. The period from September until the end of the year should be reserved for selling the crops and managing the customers.   3. Information about the product or service Every successful farmer should know where his money comes from, as well as which items will generate the most income. Since farmers usually sell more than one products or services, tracking sales is particularly important. For example, a farmer can offer few different crops and varieties. Besides selling the crops, farmers can also extend their standard product range by including various processed products (such as wine, juice, jam, etc.), machinery or even a service. In that case, tracking the percentage of income per each category can significantly facilitate farm management.   4. Due date Due date is a valuable part of every sales invoice which provides information about the date until which a customer should pay purchased products or services. For a farmer, this means the final date until which the money should be received.   5. Information about receivables The term “receivables” represents the amount of money for the goods that are sold, but still not paid. For example, in many cases when a farmer sells a product or service, the customers prefer to delay paying. This means that money for sold goods or services is not always available at the time of creating the invoice. In order to manage a farm successfully, every farmer should know who owes him and which amount is still unpaid. Therefore, it’s extremely important to stay focused and track receivables.   Keep up with Your Sales Being a farmer and growing crops is one thing. However, managing farm finances is another thing that can be challenging for farmers who are already too occupied with their land. Managing a lot of invoices or payments that are still unpaid and dealing with different due dates can be a tiresome job. For this reason, organized and successful farmers use Agrivi farm management software. Besides the fact that in Agrivi all sales invoices are in one single place, a farmer can also upload invoice photos from his computer or smartphone and keep all important documents secured. What’s even better is that with intelligent financial alarms Agrivi reminds a farmer about the upcoming due date for the payment. Imagine what you could do by managing your sales in Agrivi farm management software. There would be more time to focus on other farm activities instead of managing a bunch of invoices and transactions. So, sign up now and let Agrivi manage your sales.  TRY NOWfor free

Food production is not only a farmer’s job. As a matter of fact, food processing industry represents a significant component in the agricultural value chain. While farmers cultivate the soil in order to produce the crops, food processing industries utilize the crops as their primary resources for various types of processed products. On first sight, this system seems very simple; for example, farmers grow oranges and sell them to processing companies. A processing company then uses the oranges in order to produce fresh orange juice or some other processed product. But, if we look at the big picture, there are many challenges behind every processed industrial product.   Setting up Cooperative Values A business deal between a farmer and a processing company is the one thing that sets the entire partnership in motion. Both parties should agree to accept specific conditions. Usually, processing companies request from farmers the delivery of a certain quantity of products over a given period of time. On the other hand, farmers usually demand a specific price, as well as regular paying. “When setting up a business deal, the main goal is to create a win-win situation.”   In order to establish a solid business deal, both parties sign a contract in which they agree to fulfill the required conditions. When setting up a business deal, the main goal is to create a win-win situation. This means both farmer and processing company will get a piece of the pie. More concretely, farmers ensure a safe source of income and stable price. At the same time, processing companies can achieve certain quantities of resources that meet the specific quality requirements, at an agreed price.     How to Manage a Supply Chain Efficiently? The health of a supply chain is also the health of a processing company. For this reason, it’s extremely important to manage a supply chain efficiently. As a response, processing companies should focus on managing their cooperatives. This includes both contract management and regular monitoring of cooperative execution. Therefore, processing companies that strive to achieve operational excellence in managing their supply chain, should create a transparent contract. In doing so, it’s always recommended to define the way of compensation in a case that something goes wrong and the farmer can’t deliver the arranged quantity of products.  “The health of a supply chain is also the health of a processing company.” In addition to a transparent contract and defined risk management, processing companies should practice regular monitoring of their cooperative farmers. That way, a company can detect which factors influenced farmer’s productivity and ensure on-time reaction if an unexpected situation occurs. Managing a network of cooperative farmers can be a demanding job. Differences in farmer’s knowledge, resources, farm practices, and weather conditions strongly dictate the outcome of farmer’s growing season. For this reason, having access to the production data is the key requirement for boosting farmer’s productivity.     As a response to that, Agrivi farm management software helps all stakeholders that cooperate with a network of farmers to achieve operational excellence and ensure the health of its farmer network. After all, increasing the profit margin for both farmers and stakeholders is a key mission for Agrivi farm management software. So, if you are a food processing company and you are interested in finding out more information about how you can manage a farmer supply chain easily, feel free to contact our Sales team.     Image sources: Dreamlandia