Approach the current economy like a wild horse

A few weeks ago I had the privilege of visiting the beautiful Kruger National Park and spending time in nature. One of the characteristics of the specific park is that mobile phone reception is limited and one is a little isolated from the rest of the world. It feels like you are in another world where your daily routine is determined by wildlife sightings.

The feeling quickly wore off when we were greeted by certain realities upon our planned return home with closed roads due to strikes over rising fuel prices. Since then, I find myself frequently in a state of uneasiness about the current economic climate and its outlook. Fertilizer and fuel prices have shot through the roof, inflation is running past the upper target mark of 6% and interest rates have recently been increased again to combat inflation. The value of the Rand struggles against the US Dollar and all of the above affects our pockets on a daily basis and not in a good way.

It got me thinking about how you and I as a producer or agribusiness can position ourselves to operate successfully within the current climate... approach the economy like a wild horse. I would like to share some interesting facts about wild horses to support my comparison.

• A wild horse is unpredictable

A wild horse's behavior cannot be predicted accurately or to such an extent that a rider would rely on it. There is currently a lot of uncertainty in the economy and it is difficult to base decisions about the future on current realities, as they can change in the blink of an eye. Don't make long-term decisions now if they aren't required.

• A wild horse does not trust anyone and is sensitive to sudden actions

According to the South African Chamber of Commerce, business confidence is at its lowest levels since the outbreak of the pandemic in April 2020. We see that any news, especially on the negative side, has a remarkable impact on people's behavior and decisions. They react more drastically to new information and we see more spikes/outliers in economic indicators due to overreactions.

• A wild horse can become aggressive very quickly

A wild horse feels threatened easily (due to mistrust and survival instincts) and reacts aggressively. If you are close you may be kicked or bitten, if you dare to get on the horse you can easily be thrown off. In our businesses and on our farms we feel the kicking and biting of the times and some are desperately holding on not be thrown off.

So, if you want to navigate your farm successfully through the challenges, approach the economy like a wild horse by considering the following:

1. Calm yourself and become aware of your immediate environment and factors that affect you and your business. There is a lot of noise that can disrupt you even though it is not even relevant or a reality. Discern between good information and the noise. Act calmly and cautiously.
2. Make rational decisions based on good information. Don't just react to the market or news and make quick decisions. Sometimes one causes one's own downfall by acting out of fear or greed.
3. Review all business expenses and debts and see where savings can be realised. Think twice before taking on new debt and first calculate whether the business can afford it.
4. Trust yourself and your management team to navigate the business through the challenges. Do business with confidence and don't become indecisive or passive.
5. Stay involved and be committed to the process. Even the wildest horses can be tamed. Even the worst economy holds opportunities for those who can identify them and aren't afraid to pursue them.

South African farmers are known for their determination, innovation and perseverance. If anyone can tame the wild horse, it's you! Put on your helmet, buckle up and ride the horse with confidence. 

Enjoy farming, because it is a profession of hope!