Date Posted: August 13th, 2012
This week’s story from the Comoros talks about food prices, and how farmers can get into financial trouble when the selling prices for their produce unexpectedly – or in this case, not so unexpectedly – drop. One of the best things farmers can do to protect themselves against unexpected changes of any sort is to make a budget.
If a farmer learns to make and use a budget, he or she can:
- earn more money from crops and livestock;
- determine whether new tools or equipment are affordable, or pay other expenses such as labour costs;
- determine which crops will be the most profitable, and how much of each crop to grow; and
- identify potential financial problems in advance; for example, items or places where too much money is being spent. Farmers can then correct the problems before their whole business is affected.
In this story, a young woman shares her personal experience of financial planning. The story’s narrator repeats important information and to encourage listeners to reflect on their own circumstances.