By Abdulwasiu Yomi Alimi Co-founder/CEO glofarm
There’s an old saying in agriculture: “The farther you are from the soil, the richer you become; the closer you are, the poorer you get.”
At first glance, it seems true. In many markets, farmers earn the least while middlemen, processors, exporters, and retailers capture the bigger profits. But this is not the full story — and it doesn’t have to be the farmer’s reality.
Why Farmers Often Earn the Least
In most food systems, raw produce is sold at low prices. Without access to storage, processing, branding, or direct markets, farmers are forced to sell quickly and cheaply, especially when produce is perishable. As a result, they remain at the lowest point in the value chain.
Following the Money in Agriculture
At glofarm, we analysed the agricultural value chain and found that profit margins grow the farther you move up the chain — not away from the soil, but away from low-value activities.
From our findings:
- Farming (raw produce) can yield around 5% margin per unit sold.
- Processing, branding, and retail can push margins above 30–40%.
- The real wealth lies in integrating production with higher-value activities.
Breaking the Myth
It’s not your proximity to the soil that limits wealth — it’s your proximity to low-value positions in the chain. The moment a farmer invests in processing, branding, export, or direct-to-consumer sales, the game changes.
In other words:
Poor farmers sell crops. Wealthy farmers sell products, experiences, and brands.
The Way Forward for Farmers
- Think Beyond the Farm Gate – Explore processing and packaging.
- Invest in Storage – Extend shelf life, avoid distress sales.
- Build a Brand – People pay for trust, quality, and story.
- Find Niche Markets – Premium, export, or health-focused segments.
The future of farming belongs to those who see themselves not just as growers, but as agri-entrepreneurs. The soil can still make you rich — if you own more than the harvest.
