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Agricultural Economics | Provided by
Senwes Financial Risk Control
Who we are
The agricultural economics department aims to improve the financial feasibility and sustainability of our farmers' operations, and to ensure that they are well-equipped to navigate economic challenges and seize growth opportunities.
Download BrochureWhat we offer
The agricultural economics team assists farmers with, among other things, agricultural economic studies, mechanisation planning, and operational branch analyses, as well as the interpretation of financial results of farming units.
Products and ServicesOur Partners
JDI, a subsidiary of Senwes with the Tomlinson family as a shareholder, expands Senwes Equipment's geographical footprint by providing agri-equipment and maintenance solutions in the Western and Eastern Cape.
Staalmeester, another subsidiary of Senwes, has the Coetzee family as a shareholder and they broaden Senwes Equipment's product offerings by manufacturing and importing agricultural equipment for small and medium-sized producers whilst, Falcon (another Senwes subsidiary) further increasing Senwes Equipment's competitive edge in the agri-sector by manufacturing and distributing tractor-drawn implements and parts to the South African and sub-Saharan agricultural and turf markets,
Our Brand
Products and Services
Farm Management Analysis
The purpose of a farming management analysis is to compile a financial performance and technical efficiency report for the commercial producer, in order to measure and compare the operational aspects of the farm, thereby improving the efficiency, effectiveness, and sustainability of the enterprise. The farm's performance is measured annually over a production period extending from September 1 to August 31. The analysis includes:
Profitability Analysis
This involves determining the break-even points of each branch and comparing them with other farmers. The profitability of each branch is also evaluated to determine if they are being optimally utilised within the farming operation. The identified break-even points and trends can then be used to manage grain prices and reduce risks.
Efficiency Analysis
Efficiency analyses include analyzing the return on capital of your farm, maintaining positive profit margins, evaluating the critical debt burden, and measuring the productive use of capital in your farming operation. The E-Bureau also offers labor analyses, which provide insights into the effective use of labor on your farm. Additionally, mechanisation efficiency can be compared with fellow farmers to identify areas for improvement, thereby increasing the overall efficiency of your farm.
With the Senwes E-Bureau, you can make informed decisions and implement proactive measures to improve your farm's efficiency, profitability, and long-term success.
Winsgewendheidsanalise
Die Senwes E-Buro doen winsgewendheidsanalises op gewas- en veevertakkings. Dit behels die vasstel van gelykbreekpunte van elke vertakking en die vergelyking daarvan met ander boere. Die winsgewendheid van elke vertakking word ook geëvalueer om te bepaal of hulle optimaal benut word in die boerdery. Die geïdentifiseerde gelykbreekpunte en tendense kan vervolgens gebruik word om graanpryse te bestuur en risiko's te verminder.
Doeltreffendheidsanalise
Die Senwes E-Buro bied 'n reeks dienste om die doeltreffendheid van jou boerdery te help optimaliseer. Dit sluit in die ontleding van die opbrengs op jou boerdery se kapitaal, die handhawing van positiewe winsmarges, die evaluering van die kritiese skuldlas en die meting van die produktiewe aanwending van kapitaal in jou boerdery.
Die E-Buro bied ook arbeidsontleding, wat insig gee in die effektiewe benutting van arbeid op jou plaas. Boonop kan meganisasiedoeltreffendheid met medeboere vergelyk word om areas vir verbetering te help identifiseer en dit verhoog jou plaas se algehele doeltreffendheid.
Met die Senwes E-Buro kan jy ingeligte besluite neem en proaktiewe stappe in plek sit om jou boerdery se doeltreffendheid, winsgewendheid en langtermynsukses te verbeter.
Accounting Support
The accounting support team plays a crucial role in ensuring accurate financial record-keeping for farmers. Enhance the financial success of your farm with our specialised accounting support and programme services, specifically tailored to your business needs.
By utilising the latest software, you can maintain up-to-date financial data, enabling informed decision-making and strategic planning for the future of your farm. Our goal within the Agricultural Economics department is to improve the financial feasibility and sustainability of our farmers' operations, and to ensure that they are well-equipped to navigate economic challenges and seize growth opportunities.
Mechanisation Planning
Mechanisation planning for a farm is a plan designed to meet the specific mechanisation needs of a farm, taking into account the labour and capital replacement policy to determine the most economical and efficient combination of tractors and implements. This ensures that mechanisation tasks are carried out timely, efficiently, and as economically as possible.
Mechanisation costs, which include fuel and repair costs, can account for 30% or more of a farm's direct input costs for a production season. Additionally, a capital investment of between 25% and 32%, according to study group figures, is invested in tractors, implements, and equipment. This justifies the need for a farm to conduct a complete and comprehensive mechanisation plan to help manage this component of the farm.
Agricultural Economic Studies and Risk Management
- Financial Feasibility
- Financial Risk Carrying Capacity
- Determination of Minimum Size Farming Unit and Break-Even Turnover
- Determination of Minimum or Break-Even Grain Price
- Capital Expansion / Enterprise Diversification, Investment Decision (NPV & Profitability)
- Enterprise Restructuring – Determination of Financial Impact on Existing Farming Unit
- Calculation of Productive Land Values / Rental Values
Get in touch
Need someone to contact you?
For personalised and professional farm management analysis and support, contact the Senwes E-Bureau today.
