Exploration
In technical terms, a general definition of a farm is: “an area of land that is devoted primarily to agricultural processes with the primary objective of producing food and other crops”. However, there are several instances where this definition is not specific enough. For policymakers, it is important to differentiate farms based on their contribution to a country’s economy. For example, in the United States, the U.S. Department of Agriculture (USDA) defines a farm as: “as any place from which $1,000 or more of agricultural products were produced and sold, or normally would have been sold, during the year”. In an international context, the Food and Agriculture Organization (FAO) of the United Nations defines an agricultural holding as “an economic unit of agricultural production” under various management structures.
As you might have encountered in your own reading, there are a wide variety of terms that are used to describe farms based on their size, generational aspects of the farm, their ties to the community, or business orientation. Some example terms include: industrial farms; family farms, smallholder farms, cooperative farms, community-supported agriculture, corporate farms, subsistence farms, agroecological farms, etc.
The key characteristic that we want to highlight here is that farms are often defined by their economic potential. In practice, however, farms do not have to be focused only on economic production; as you probably already know, farms are also symbols of family tradition, community resilience, ecological health, connection to place, commitment to future possibilities, and so much more. Still, for better or for worse, these other qualities often depend on our ability to manage the finances of a farm. This course will focus on farm enterprises and offer support for those striving to balance the other components of farming with the finances of doing so – something that many of us struggle to access on our own. Having a clear understanding of how a farm is defined in your particular context is the first step in doing so, as it might influence how you choose to legally structure your agricultural enterprise and the types of financing options that your enterprise might be able to consider.
What is agroecology?
Agroecology is, in short, a form of agriculture that helps us see our farms as complex systems and can help us forge a “middle path.” It emerged as a scientific concept in the 1970s from the combination of two fields of science that were, up until that point, distinct and different: agronomy and ecology. Bringing together these fields of study, agronomy and ecology, allows us to analyze and better understand interactions among various organisms, especially microorganisms and insects, with plants grown in agricultural plots. Today, the concept of agroecology is not only used in science. Agroecology also defines a movement or a set of agricultural practices. The following infographic is helpful in identifying the different components of agroecology.
Learn more in this video from iPES-Food titled “Agroecology – the next evolution in food systems.“
How can agroecological principles influence a farm enterprise?
Have you ever wondered if your commitment to agroecology could have an impact on the viability of your business?
The Agroecology Info Pool initiative pulled together a very interesting report on the business case for agroecology. There are two main aspects of this report that we would like to bring your attention: that agroecology can be a viable business strategy and that data are an important aspect of measuring and communicating the success of this strategy.
Read: “Business Case: Private Sector engagement in Agroecology” from the Agroecology Info Pool
The viability of an agroecological business is typically understood as the ability of the business to be profitable over time, even in the face of disturbances. Of course, holistic viability of a farm relies on a number of other factors – including the health of your soil, the wellbeing of workers, and so many other variables – but at their core, any farm organized as a business needs to know how to make money. How does the business secure profitability? Typically by maximizing productivity. Productivity is maximized when yields are high, costs are low, and products sell at a price that is both accessible to the consumer and adequate for the producer. Evidence for the relationship between these factors and how they play out in agroecological operations can be found in the following report.
Read: “Business Case: The Economic Viability of Agroecology” (2021) from the Agroecology Info Pool.
In terms of key data and metrics, economic viability is almost strictly a data argument — it is about measured financial performance. But in agroecology, we are interested in other aspects of the business as well, such as the social and environmental aspects of the project; setting profitability and productivity as our only goals can set us up for short-sightedness, and are often at odds with the needs of the greater ecosystem of which we are a part. Tracking performance in these areas is not only essential from an agroecological standpoint, but it might also support compelling claims that can be shared with your customers. Just as we can use of fn data and metrics to measure profitability and economic performance, we can similarly use agroecological principles to create a more holistic set of metrics which will enable us to evaluate the performance of an agroecological enterprise as a whole.
Watch and listen: “Using Metrics to Convey Agroecological Values“
You can learn more about the agroecological principles included in these tools through the following brief videos:
Biovision Foundation (2021): “How agroecology helps to build climate change-resilient livelihoods“
FAO (2022): “The 10 Elements of Agroecology: Enabling transitions to sustainable agriculture and food“
DEEPER EXPLORATION
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Explore the variety of agroecological businesses highlighted by Agroecology Info Pool. Observe the key indicators measured for each business- these indicators are based on key agroecological values and characteristics. Each business was scored based on their performance in each indicator. Consider the diversity of approaches to business viability in agroecology and reflect on this as you plan your own agricultural enterprise.