Crop share: a way forward for subsistence farmers? – Roff Milling

Upon his retirement in 2018, Lesotho-based Roff client Jerry Ntsekhe took up community milling. Aware of how hunger threatened to ravage his country, he set out to provide a valuable service to his fellow countrymen and make a difference whilst earning an income.

But community milling is not the only way in which Jerry is making a difference. Partnering with the local villagers, Jerry rents their land, and supplies the machinery, seeds and fertiliser to ensure that it’s properly tended and cultivated. Come harvest time, he shares in the maize yield. As a result of this business model, employment is created for the villagers who are plot owners and also for the greater community. Another win is that the supply of maize to Jerry’s mill is also improved.

Maize meal from Posho with hand

This form of farming without owning land is called yield share, crop share or share farming, and has been used for many years with great success in, for instance, the dairy industry. It can however also be especially beneficial for small or subsistence farmers by helping them to farm on a bigger and profitable scale, ultimately driving food security – one of the African continent’s biggest challenges.

Posho client woman cleaning maize

What is subsistence farming?

The broad definition of subsistence farming is the practice of growing crops and raising livestock sufficient only for one’s own use, without any surplus or little surplus for trade. It plays a key role in reducing the vulnerability of rural and urban food-insecure households, improves livelihoods, and helps to mitigate high food price inflation.

However, subsistence farming in Africa is not without challenges. Alone, these farmers are often unable to farm on a scale that’s profitable, since they don’t have the means to buy valuable farming equipment like tractors and harvesters, seeds or fertiliser. As such, important steps in the farming cycle like soil preparation, planting and harvesting have to be done using manual labour which takes much longer, and might render them unable to plant and harvest at the right time which may cost them the harvest.

Yield share farming

This type of farming, because it takes place on a larger scale, allows for the efficiency and profitability of commercial farming, whilst land ownership remains with the small farmers who generally live on the land as well. The model enables an entrepreneur, like Jerry Ntsekhe, to operate a farm business without providing the upfront capital required to own all the farmland needed to farm profitably. Most commonly an entrepreneur or share farmer (supplying seed, fertiliser and machinery) enters into a share farming agreement with a subsistence farmer (supplying labour and farmland). The model involves varying levels of risk and profit allocation between the share farmer and the landowner.

Evans Killy in front of tractor

How can yield sharing benefit subsistence farmers?

Subsistence farmers generally achieve much lower crop yields than commercial farmers, who operate on a larger scale that allows the process to be much more efficient. Entering into a yield share arrangement can help them to sustainably intensify their production and profitability, because:

The yield sharer provides the money, machinery, fertiliser, higher quality seeds and pest and soil control to ensure a good crop – funds to which the landowner might not have access. Subsistence farming plots of land are simply too small to justify or enable any of the above.
In addition to the above, the entrepreneur/ yield sharer could contribute valuable business and agricultural knowledge in benefit of the subsistence farmer’s productivity.
Employment opportunities are created for community members who work the land, or where the yield sharer runs a community mill, at the mill itself.
Minimal disruption is caused to the daily lives of the subsistence farmer and his family, since they continue to live on their land, tend to the fields, and guard the crops against grazing cattle, to name a few.
This model can enable the farmers to grow from a subsistence operation into a profitable business, increasing their income and quality of life.

Finally, the yield sharer or entrepreneur with a mill can benefit from a consistent supply of maize thanks to a stable partnership.

In the journey towards food security in Africa, approaches such as yield sharing will prove invaluable.

Get in touch with Roff on sales@roff.co.za or +27(0)56 212 2697 for expert advice on all your community or commercial milling needs.

References:

https://farmtable.com.au/build-category/share-farming/
https://www.tandfonline.com/doi/abs/10.1080/03031853.2009.9523836?journalCode=ragr20

Frequently Asked Questions

Find answers to common questions below

Why should a maize producer consider investing in a maize mill?

A maize mill gives producers the opportunity to add value to their own maize instead of relying only on the raw grain price. By milling, packaging and marketing maize meal, producers can create an additional revenue stream and reduce the impact of maize price volatility on their business. By-products like maize germ and bran can also be sold or used in feed operations, helping ensure that more of the maize kernel contributes to the bottom line.

How can milling help protect farmers from maize price fluctuations?

Maize prices are constantly influenced by market conditions, weather, climate changes and global events. When prices are low, producers may feel pressure on margins, especially when input costs remain high. Milling helps producers move further up the value chain by selling a finished product rather than only raw maize, giving them more control over their margins and market position.

What products can be made from a maize milling plant?

A commercial maize mill can produce maize meal, while some configurations can also produce grits for snack products. The milling process also creates by-products such as maize germ and bran, which can be sold to feedlots or used in a producer’s own animal feed operation. In Idlani’s case, this has become a useful additional income stream alongside their main maize meal business.

What makes the Roff R-70 a good option for maize milling entrepreneurs?

The Roff R-70 is a compact commercial maize mill designed for entrepreneurs who want to produce maize meal at scale. It has a milling capacity of 4 to 5 tons per hour and can produce up to 120 tons of maize per day, depending on the configuration. Roff positions the R-70 as a compact, all-in-one maize mill built around simple, high-quality milling principles.

What support does Roff provide with the R-70?

Roff supplies the mill, electric panel boards, installation, set-up and training. The blog also highlights the value of choosing a manufacturer with a strong reputation, industry knowledge, after-sales support and locally available parts, especially when downtime can directly affect profitability.