gmelina or mahogany farming anyone?

[lowslowbenz]

un bang Capitalized Net Income, eh un ung net profit labas na lahat ung expenses?

Yes, I think so. Honestly nahihilo ako sa formulas diyan, but I think that's it.

And that is exactly why my father has an accountant. Nahihilo din sya sa figures. LOL. :D

[morningbliss]

capex u mean capital? hehe sencya na medyo noobie sa mga ganyang terms...well agree ako hindi biro ung capital...and i think opportunity ko eto since OFW ako and maayos naman ung source of income for capital...may malaking investment ako now sa condo naisip ko i-divert na lang sa farming kasi makaka2long pa ako sa mga relatives ko sa province namin na magkaroonng source of income pag operational na ung farm ko..
naiimagine ko gano kahirap para sa ibang pamilya na may lupa pero wlang sapat na pondo..hirap talga..

well, sa point of view ko at thisl point of time could be simplistic kasi wala pa talaga ako in real life dynamics..and thankful ako sayo kasi share mo ung di mapapalitan na mga expiriencres.. now palang naiisip ko na nga ung pwedeng financial issues, ung interface mo sa workers and ung trust..especially hindi ako mismo ung nag mamanage nung farm...ung talagang main motivation ko sa farm is ung sa long term potential nung mahogany and/or gmelina gaya nga ng idea ni sir yebo...sugarcane farming, based sa mga napulot ko sa inyo eh i think commendable and profitable if managed the right way..

i can share your sentiments and understand ung responsibilities ng isang responsible landlord...and very great at nakikita ko sa inyo un
and yes ung dynamics nung mga farmers at landlord, parang symbiotic din eh so kailangan nila ng isat isa...kawawa talga ang mga tao..nagpapakasarap ung mga nakaupo sa gobyerona magnakaw ng pera samanaltang tau naghihirap kumayod....kaya sna matuto na din mga masang pinoy sa binoboto...porket artista kasi,,,haysss

well, tama ka dun..honest living...kaysa naman sa pork constituents ni napoles
soon, i hope ma experience ko din ung real life dynamics ng sugarcane farming..maybe after 3 crops kasi dun sa site na sinabi mo sabi common ung 1 plant crop plus 2 rattoons...so after 1 complete cycle, i can close the gap between our perspectives

Actually, hindi biro ang capex mo when you start/go into sugarcane farming. Kaya ang iba natin mga kaibigan na medyo kulang ang pondo, sinasangla ang lupa muna sa bangko for added capital. Then strike it on hard work and luck to pay back the debt in the specified time frame. Others secure crop loans from banks over their standing cane.

Kung medyo malakas ang spending mo on other things, its easy to lose focus on the business and go belly up. In our part, we always make sure to return the similar amount spent on the land. How much is left would go to maintenance of farm equipment, and to other misclaneous things needed to run a farm operation. At the end of the day, profits can be decent to live on, but not overly spectacular as others would tend to believe.

On paper, yes the figures are enticing. But in real world operations, its a bit different. Marami na variables coming into play. Remember that a farm landlord is like a father figure to his/her people. Pag may nagkasakit sa isang family, takbo sa landlord. Pag may namatay, takbo kay landlord. Pag kinapos sa budget sa bahay, takbo kay landlord. And so forth and so on. These things involve a lot of money as well. You need people to run the farm, if you lose the loyalty of these people, you might as well stop what you're doing kasi you'll be a dead duck on the water.

Some people may say that Negros is the last bastion of feudalism, but if one looks at it, if the farmers stop their operations, saan pupunta ang mga tao? Mas lalo maging terrible ang sitwasyon. The inutile government for what its worth will just sit back and watch, hands crossed. So kawawa talaga ang mga tao.

We are now fighting against CARP, which from the start is a drum full of worms. I've seen the CARP results in barren haciendas, now owned by banks because the beneficiaries had no money to start with as capital, or spent it all on material things.

Gone are the glory days when life in Negros was "sweet". We are now just trying our best to make an honest buck, for the equivalent sugar that we produce.

[morningbliss]

hahaha! i love the formulas...kagandahan nito meron pang 2 case studies and 1999 pa so the figures could readily differ sa ngayon..

pero thanks sa link na eto very nice basis sa planning ng expenses at ung ibang concepts na mga nabanggit mo eh andito din so mas ok ung understandng heheh

Yes, I think so. Honestly nahihilo ako sa formulas diyan, but I think that's it.

And that is exactly why my father has an accountant. Nahihilo din sya sa figures. LOL. :D

[lowslowbenz]

hahaha! i love the formulas...kagandahan nito meron pang 2 case studies and 1999 pa so the figures could readily differ sa ngayon..

pero thanks sa link na eto very nice basis sa planning ng expenses at ung ibang concepts na mga nabanggit mo eh andito din so mas ok ung understandng heheh

You're welcome, at least 3 croppings (3 years) on the average, and you will be able to see the trend/productivity of your venture. Initial start-up capital is the real eye-opener lang talaga. How many hectares of land will you devote to sugarcane?

[morningbliss]

*LSB, i made further research on CNI because the formula does not tell me its the profit per hectare...i found out that
Capitalized Net Income (CNI) — This shall refer to the difference between the gross sales (AGP x SP) and total cost of operations (CO) capitalized at 12%

this means ginagamit eto as an input to determine ung land value ng isang sugarcane plantations hehehe...ung 12% un ung capitalization rate

Definition of 'Capitalization Rate'
A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor's potential return on his or her investment. This is done by dividing the income the property will generate (after fixed costs and variable costs) by the total value of the property. If you want to get technical, it is basically the discount rate of a perpetuity.

Capitalization Rate = Yearly Income/Total Value

dun sa sinend mo way back 1999, typical na net income rate sa sugar around 27% at sa molasses mga 67%...yield dati nasa 95 LKG (un pala ung unit term sa 1 x 50-kilo bag ng raw sugar hehe) aat ung molasses around 1.15 Metric tons...net profit nasa mga PhP 20,000 per hectare...not bad way back in 1999! present 2013, well i may need to do some computations again pero based palang sa 1999, it should be really nice investment

plan ko bumili ng 40hectare kaso may kasamang rolling ung place pero surrounding daw nya is panay sugarcane plantations...dko pa kasi alam ung setup nung area titingnan ko palang so i cannot decide kung ano ung proportion na gagamitin ko for sugarcane at ung timber plantation ko...i need to generate my financial plan first kasi based nga sa mga figures, malaking capital ung need...also ung plan ko kasi is to grow seedlings from seeds so gawa ako ng nursury probably 1 year old na seedlings meaning to say ung first year pwedeng concentrated sa sugarcane although in that case limitation is ung pera...actually plan ko din is taniman ng green manure/cover crop ung designated timber plantation ko para i condition ung lot then after maybe a year of pruning, sabi around 40 tons ng nitrogen per hectare...naiisip ko dito pwedeng ung monggo beans...pero problema ko dito eh konti lang ung organic green..may naresearch na akong optimum leafy and non-weedy drought tolerant na specie baka un gamitin ko then regular pruning para maging organic ung soil..

pero dun sa sugarcane lot, sa tingin ko for now dko na need ng ganun conditioning kasi malamang inorganic fertilizer ang common sa area...pero soon, gagawa ako ng isang research using organic farming sa sugarcane maybe 1 hectare of controlled farm...

balitaan kita after ko ma close ung deal ko dun sa lupa at after ko mapuntahan....







[QUOTE=lowslowbenz;2231026]You're welcome, at least 3 croppings (3 years) on the average, and you will be able to see the trend/productivity of your venture. Initial start-up capital is the real eye-opener lang talaga. How many hectares of land will you devote to sugarcane?[/Q

[lowslowbenz]

^

That is the site of DAR, kaya there is land value computation. But the other formulas would be very useful to you.

Re: sugarcane tips (seedlings). When harvesting sugarcane, the tips (just before the leaf stalks) are usually chopped and retained. These will then be re-planted to grow as new crops. No need to buy seeds (I doubt kung meron). What you can do is buy from your neighboring farms if they are in the process of harvesting their cane. Ang sa amin kasi, automatic after cutting down the cane, we also cut and retain the top most portion, para may seed stock kami.

I hectare is small, you need at least 1.5 hectares to see your figures. I suggest you start at 2 hectares, then as you harvest, also stock up on cane tips, just in case you want expand your plantable area.

If the income is favorable, baka ayaw mo na mag mahogany nyan .. Hehe.

[morningbliss]

haha oo nga no kaya pala sa DAR...

wow thanks sa tips...so un pala ung ginagamit cuttings...kaso kagano katagal ung storage nito baka kasi mabulok.
maganda padin ba ung growth nung cuttings as compared dun sa tip? so it means sa 1st cropping meron kang 2 options, ung ratoon plus ung cutting sa top na nabanggit mo...tama ba?

sory dko ata na explain masyado...ung 1 hectare is plan ko lang gawing Research controlled farm na kung saan gagamitan ko ng organic farming...pero ung the rest say 39 hectares, pwedeng solid sugarcane plantation kaso malamang hindi lahat ksi limited sa capital..then the next year pag malaki na ung seedlings ng timber ko, most likely magiiwan ako ng 10hectare para sa sugarcane...

well lets see hehehe...pero vision ko kasi talga magkaroon ng timber farm plus rainforest bee farming plus poultry

^

That is the site of DAR, kaya there is land value computation. But the other formulas would be very useful to you.

Re: sugarcane tips (seedlings). When harvesting sugarcane, the tips (just before the leaf stalks) are usually chopped and retained. These will then be re-planted to grow as new crops. No need to buy seeds (I doubt kung meron). What you can do is buy from your neighboring farms if they are in the process of harvesting their cane. Ang sa amin kasi, automatic after cutting down the cane, we also cut and retain the top most portion, para may seed stock kami.

I hectare is small, you need at least 1.5 hectares to see your figures. I suggest you start at 2 hectares, then as you harvest, also stock up on cane tips, just in case you want expand your plantable area.

If the income is favorable, baka ayaw mo na mag mahogany nyan .. Hehe.

[lowslowbenz]

haha oo nga no kaya pala sa DAR...

wow thanks sa tips...so un pala ung ginagamit cuttings...kaso kagano katagal ung storage nito baka kasi mabulok.
maganda padin ba ung growth nung cuttings as compared dun sa tip? so it means sa 1st cropping meron kang 2 options, ung ratoon plus ung cutting sa top na nabanggit mo...tama ba?

sory dko ata na explain masyado...ung 1 hectare is plan ko lang gawing Research controlled farm na kung saan gagamitan ko ng organic farming...pero ung the rest say 39 hectares, pwedeng solid sugarcane plantation kaso malamang hindi lahat ksi limited sa capital..then the next year pag malaki na ung seedlings ng timber ko, most likely magiiwan ako ng 10hectare para sa sugarcane...

well lets see hehehe...pero vision ko kasi talga magkaroon ng timber farm plus rainforest bee farming plus poultry

On your first cropping, you would need the cane tips talaga. Once you harvest that first crop, you can cut the upper portions of your harvested cane for use as cane tip seed stock for your second cropping

OR

You can use the ratoons of the sugar cane from your first crop. Ratoon explained here; Ratooning - Wikipedia, the free encyclopedia

Sugar cane tips store of about a month or two, depending on the conditions. Storage must not be too wet as they will rot.

I see, likewise, start at 2 hectares para you can effectively see your profits. 1 hectare is just too small.

[morningbliss]

On your first cropping, you would need the cane tips talaga. Once you harvest that first crop, you can cut the upper portions of your harvested cane for use as cane tip seed stock for your second cropping

OR

You can use the ratoons of the sugar cane from your first crop. Ratoon explained here; Ratooning - Wikipedia, the free encyclopedia

Sugar cane tips store of about a month or two, depending on the conditions. Storage must not be too wet as they will rot.

I see, likewise, start at 2 hectares para you can effectively see your profits. 1 hectare is just too small.

hello....i got your point!
thanks! Godbless and hope you will have ur sweet baby soon

[lowslowbenz]

^

Another technique we use is sinasabayan namin yung ratoon ng isa or dalawang cane tips. That way, when the cane matures, mas marami yung cane stalks for cutting equating to higher yield per hectare. However, this would entail manual labor in planting the cane tips beside the ratoons.

If you have questions along the way, I'm just around.

Goodluck on your business venture, and thank you also!