The UGM KKN-PPM team conducted a Farm Financial Literacy Program as a step to empower farmers through a foundational understanding of financial record-keeping and management for their farming businesses. The program aims to enable farmers to independently plan, monitor, and evaluate the financial condition of their farming operations.
Through this initiative, farmers were introduced to the importance of recording harvest yields, production costs, and other expenses. The education also covered simple methods for managing cash flow, calculating net profits, and planning capital for the next planting season. The KKN team provided practical solutions, including a recommendation to use the RekTanigama digital record-keeping application, which helps farmers organize their financial data neatly and systematically.
“Financially literate farmers are better prepared to face challenges, from price fluctuations to sudden capital needs. Financial literacy is the first step to help farmers manage their hard work’s outcomes, not just toil in the fields,” said Hammam Arkan Halim, a student of the Agricultural Economics and Agribusiness Program at UGM’s Faculty of Agriculture and the initiator of the program.
This program contributes to the achievement of the Sustainable Development Goals (SDGs), specifically SDG 1 – No Poverty, SDG 4 – Quality Education, and SDG 8 – Decent Work and Economic Growth. With sound financial knowledge, farmers are expected to make wiser decisions, improve their family’s well-being, and develop their farming businesses sustainably.
Author: Hammam Arkan Halim (Agricultural Socioeconomics, 2022)