Learning Goals
- Discuss the scope and nature of farming plants to produce oils or oil rich products.
- Explain how oils can be extracted from plants.
- Explain how to farm canola and rapeseed.
- Explain how to farm olives for oil production.
- Discuss agronomic farming and production of other edible oils for human and animal consumption.
- Discuss agronomic farming and production of a range of oils for cosmetic and medicinal use
- Discuss agronomic farming and production of plant oils for industrial and biofuel applications
- Analyse issues that impact success or failure of a plant oil production enterprise
- Formulate a plan for development and management of a plant oil production enterprise.
More Information
WHAT DOES IT TAKE TO MAKE A FARM SUCCESSFUL
Before undertaking any oil crop growing, it is important to consider what it takes to make a farm successful, sustainable, and profitable. Resources must be available and managed in an appropriate and sustainable way. These include:
- Human resources – quantity and quality of people involved including managers, owners, and labourers. Those involved must have appropriate knowledge, awareness, skill, health, and motivation. Human resources can also include having suitable and reliable contacts in terms of selling, processing, storing, and marketing oils and by-products. Also, consider specialist services such as agronomists, equipment suppliers, field officers, certification bodies, etc.
- Land resources – land can be degraded by unchecked monoculture on a broadacre, overuse of fertilisers, poor use of herbicides, erosion from lack of crop cover, and so forth. The quantity of land needed for a commercially viable crop may also be inhibiting. Soils may need a considerable amendment to make them suitable for specific crops. Topography, annual rainfall, or temperatures may be limiting. There may be a long withholding period following harvest.
- Physical resources – machinery, tools, fencing, water, storage, processing, even the site location can all impact the success of a farm. Consider what machinery might you need to invest in to harvest a specific crop? Can it be purchased and delivered or collected? What sort of maintenance costs are involved? Can some tools or equipment be hired? Will you need to fence off paddocks and install safety gates or signage? Will you need onsite storage units or processing equipment?
SUCCESSFUL FARMING
Successful farming has two key criteria, being profitable and meeting the needs of the farmers. Whole farm planning is a comprehensive approach to farm decision-making, including crop and pasture agronomy, livestock husbandry and grazing management.
Traditionally, family farms owned the farm assets and provided the resources for operating the business including land, water, labour, management and working capital.
A farm business model includes:
- Business ownership and access to resources
- Operational management
- Capital funding for the business growth and operations
- Profitability by improving cost structures
- Risk management and risk sharing
- Business succession
Capital
Farms are capital intensive, requiring new capital for growth, development and working capital. Farming businesses are funded by a combination of equity and debt finance. The capital ratio is a personal choice, with long term averages being about 64% internal equity, 22% through bank financing and 14% through other forms of equity.
Internal equity includes the initial investment, appreciation of assets and retained profits. An important consideration is farm succession which results in the withdrawal of internal equity to fund the retiring member.
External equity can be complex to establish and manage, investors require a return on their investment which is often higher than debt finance.
Debt financing is dependent on loan security and loan-to-value ratios. It is cheaper than equity financing, however, risk events affecting profitability can result in asset forfeiture to the finance institution. Given the large capital outlay for broadacre farming, new entrants need to rely on succession or debt financing to enter.
Profitability
Productivity, controlling costs and availability of sufficient resources, drive farm profitability. One approach is to increase scale, resulting in an increased bargaining position for purchasing, as well as negotiating business relationships with sub-contractors. This is primarily achieved through increased land operations, through land purchasing, leasing and joint ventures.
An alternate approach is matching resources to the scale of operations, that is a level of resources that delivers the greatest economic efficiency.
Risk Management
Risk management is understanding the likelihood and consequences of numerous events that can impact farm profitability. A risk profile measures your approach to managing risk through avoidance, acceptance, and mitigation through insurance. Farm businesses face many risks from:
- Production risk, coping with weather events, hail, wind, frost, heat, drought, pests, weeds, and diseases.
- Technology risk, adoption of new practices.
- Market risk, varying commodity prices and product demand.
- Finance risk, loan repayment, machinery purchases and repairs, legal responsibilities.
- Government risk, record-keeping, reporting costs, restrictions on land usage.
- Personnel risk, workplace health and security issues, death, injury, illness and departure of key resources.
Succession
Succession involves the transfer of operational management and ownership of assets. Farm businesses recognise the importance of early succession planning, and mobilising key personal for farm business continuity.
Key issues include family factors like marriage, birth of a child, taking on major debt, significant financial loss, transfer of business responsibility, injury, illness or death of a family member.
Understanding the needs of key people in the farm business, and planning for their succession process, enables owners to exit the business in a timely manner. An appropriate business structure enables a pathway to transfer management and asset ownership.
The business structure sole trader, partnership, company, or family trusts can provide asset protection, effective management of income taxation, as well as provisions for family members not involved in farm operations.
FAQ
FREQUENTLY ASKED QUESTIONS
Here is a list of the most often asked FAQ’s.
General
Q. Why should I enrol with the Academy for Distance Learning?
A. Here at ADL, our students are our priority – we treat everyone as a unique individual.
Q. Do I need to buy text books?
A. No, as each module has been written by highly qualified industry professionals. The content of the material is presented in such a way that text books are not required. However, if you require additional reading your tutor will be able to supply a list.
Q. What happens if I have to stop studying for a while? (eg. become sick, go on holidays, have a baby, move house, etc)
A. It’s OK to take a break and start up your study at a later point in time. Just let us know.
Q. Is there an age limit?
A. There is no maximum age limit. We do however, have a minimum age limit of 18 years. Below that age parental consent would be required.
Q. Are your courses up-to date?
A. Our courses are revised and updated on a rotation system.
Q. Do you have a Cancellation policy?
A. Yes. We have a cancellation policy that is fair and equitable. For further details please click here.
Q. Will I have any opportunity to engage with other students?
A. We have a Student Community group based on facebook! If you don’t have a facebook account already, you could make one just for talking with fellow students on the group.
Enrolment
Q. When can I enrol/start?
A. You may enrol and start at any time of the year – it’s all self- paced.
Q. Can I study from anywhere in the world?
A. Our courses are available to anyone, anywhere in the world from the comfort of your own home. The course content is relevant to any country, culture or economy.
Q. How long do I have to complete the course?
A. You complete the course at any time that is convenient for you.
Q. Completing a 100 hour module – how long will it take?
A. For some students a 100 hour module will take approximately to 3- 6 months to complete. Others take less time and some even longer.
Assessment
Q. Assessment – how does it work?
A. For each 100 hour module you are assessed by assignments (at the end of each lesson) and a final one and a half hour exam (or you may elect to complete a Project, instead of sitting the exam) – the choice is yours – you sit for the exam in your own location.
Q. I don’t cope well with exams – what can I do?
A. You may elect to undertake a Project (set by your tutor) instead of sitting the exam. Projects are completed from your home and can usually take a couple of weeks to complete.
Q. If my assignment is not up to standard is there an opportunity to resubmit my work?
A. Yes –
Q. How many assignments do I need to complete for each module?
A. At the end of each lesson, there is an assignment – so if a course has say, 10 lessons, there would be 10 assignments.
Q. I am having difficulty attending workshops/industry meetings, what can be done?
A. If your course requires attendance at workshops, conferences, or industry meetings; alternative arrangements can be made in your country.
Qualifications
Q. What qualification will I receive?
A. For individual modules, you would be awarded a Certificate endorsed by TQUK (Training Qualifications, UK), providing you complete all assignments and the exam. If you just want to complete only the assignments and not sit for the exam or finish a Project, then a Letter of Achievement would be awarded. For more details on qualifications available please click here.
Q. Can I customize my diploma/higher qualification?
A. Not all educational institution’s certificates /diplomas meet everyone’s needs. The opportunity to Design Your Own Diploma at the Academy (subject to our approval) is an added bonus, not found at other colleges. You choose modules that you think will help you in achieving your goal.
Q. What do I get when I complete the course? Will I receive a transcript?
A. At the completion of all courses and providing all assignments and exam requirements have been met, you will receive your Award and a Transcript.
Tutors
Q. Our tutors – who are they?
A. We appoint Tutors and require that they must be currently active in their industry, with at least 5 years’ experience in their chosen profession.
Q. Can I contact my tutor at any time?
A. Yes – you have unlimited access to your tutor via email through our Online Classroom. You can always leave a message with ADL requesting your tutor to contact you. You decide on how much or how little contact you wish to have.
Q. Practical work – How is this done?
A. To find out more about this part of the course please visit the section on How Our Courses Work here.
FAQ - RHS Theory Qualifications
