2. Promoter Profile
|Education||Business training, new business set-up courses, courses of agricultural specialization, tasting, labour risks prevention.|
|Marital Status||Common law partner|
|Children||1 children: 1 year old|
Farm description BEFORE succession
The farm has been in his family at least since Francisco´s great-grandfather on his mother side. His grandfather managed the farm until Francisco`s father became part of the family and began to run the business and provide agricultural contract services using grain harvesters in Andalusia and Castilla. They always tried to adapt machinery to the times, and they were who implanted irrigations in their permanent crops. For the commercialization they worked with both cooperative and private factory.
Farm description AFTER succession
Francisco decided to leave the contract sevices, using combine harvesters because they were not profitable, nowadays there is less cereal cultivation and the activity requires heavy investments. In addition to maintaining the land previously under cultivation, Francisco has increased the crop area by leasing new land. He has also decided to increase the volume of professional services he provides to other farmers in the area. Given that he keeps more land, he needs to hire more people each year. He is attempting to harvest early, focusing on quality product, despite the fact that the market does not value it sufficiently in terms of price differential. He is considering getting into integrated production. He has reduced phytosanitary treatments by looking for the best time to carry them out, which has allowed him to maintain plant health and reduce costs. They have acquired new machinery such as a better tractor, a mince machine and a shovel. He has increased sales to private factories, reducing his contribution to cooperatives.
4. Succession Process
- The oversupply of harvesting services has made them focus on agricultural services only in their area and abandon the cereal harvester.
- The cooperatives generate problems in the economic management of the professional farms. Work with a cooperative involves higher costs, loss of control of your business and less self-management of your liquidity.
- Excessive bureaucracy, legislative limitations and public control that hinders professional activity discourages many young farmers. They need advice and work from agrarian organizations for better guidance.
- In the case of applying for grants, without help from the family it is difficult to comply with the business plan and maintain a sustainable farm. The acquisition of equipment rather than land, which is very expensive, stimulates efficiency rather than volume.
- There are limitations on the type of contract for renting land, sharecropping is not allowed in some cases, so more flexibility is needed. Holders do not want to transfer their CAP entitlements.
- Even theoretical courses are useful. More courses are needed, but they should be adapted to each case. Real simulation of your case.
- Courses in marketing, design and adaptation of product to demand.
- Knowledge of taxation, details on the legal forms that impact the business.
- Importance of expert and professional advice for finding opportunities.
Francisco Lopera Advice
5. Considerations, skills/competences and queries/questions
Skills/Competences especially relevant for the succession process
- Continuous search for efficiency. We must question what is considered as known, to find more efficient formulas.
- Counseling through experts is important, but you should have a base of knowledge that will prevent you from being carried along in the wrong direction and help you to improve on any advice to reach the best decision decision.
- Be tenacious and ready to adapt to complex circumstances.
- Do young people have a clear prior idea of their motivations and what they need when taking over a farm?
- Are they willing to question what is known to adapt farms to their own needs?