For the past nine years, EVDW, a Stellenbosch-based advisory firm, has been offering practical, numbers-driven advice to farmers in South Africa, Zambia, Mozambique, and as far as the United States of America. "One of the strongest lessons we've observed," says founder Earle van der Watt, "is that financial management remains the backbone of sustainable farming. Farmers who dedicate the time to understanding and managing their budgets, cash flows, and monthly management accounts consistently outperform those who focus exclusively on fieldwork."
The numbers tell the story of the farm, he adds. "Successful producers are those who balance their time in the orchards and vineyards with time at the desk, closely monitoring their businesses."
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Understanding costs, offtake agreements, marketing, "a discipline in itself"
Accurate accounting and financial management form the backbone of a farming enterprise as the agricultural value chain has become ever more complex and data-driven. "Farmers are now more informed than ever about varieties, pricing, costs, and marketing options. Transparency has become the new norm," he says. "Successful growers demand full disclosure from exporters to make smarter decisions. Understanding costs, offtake agreements, and market strategies has become a discipline in itself, almost as important as cultivation practices."
Farmers are continuously called upon to reassess the varieties they have in their orchards and in their vineyards. Variety renewal is non-negotiable and makes a key difference in farm earnings, especially in high-value crops like table grapes and blueberries.
Increasingly steep barriers to high-value entry
Van der Watt observes that many "bread-and-butter" varieties still generate reliable profits. Success lies in carefully monitoring yield, quality, packout, and pricing per variety to make informed planting and production decisions, a crucial insight in the midst of a never-ending stream of new varieties.
"A notable trend is the disappearance of many small farms, often absorbed into larger corporate or semi-corporate family enterprises. The barriers to entry for high-value crops like grapes, dates, pome fruit, and stone fruit are increasingly steep. Without significant startup equity, entering these markets is near impossible," he says, highlighting the importance of financial strategy and structured support.
"Financing continues to be one of the most pressing issues in agriculture, and it's critical to align loan structures and repayment terms with the yield curve of long-term crops because many businesses fail during the unproductive years of perennial crops."
EVDW emphasizes the importance of building a "war chest" during profitable seasons to safeguard against downturns, while prioritizing debt repayment and financial discipline over unchecked expansion.
Neglected but critical: Multigenerational planning
One area still widely overlooked in family-run farming enterprises is succession and estate planning. "Structuring farms for multigenerational continuity is often a difficult topic, but it is vital to address early. We advise our clients on how to protect family wealth and ensure business continuity."
Innovations in genetics, production, and marketing are reshaping the industry, and yet, Van der Watt remarks, "One truth remains constant: farmers who understand their numbers, who plan for the long term and who approach their business with discipline will be the ones who thrive."
For more information:
Earle van der Watt
Evdw
Tel: +27 83 258 1591
Email: [email protected]
https://www.evdw.co.za/
