The road to success in agriculture: What financial lessons Octavian Frunze learned

Octavian Frunze, a dedicated farmer shared his experience of turning his passion for agriculture into a successful project. Over 11 years of hard work in this field, Octavian has learned valuable lessons about financial management, strategic investments and adaptability in the face of unpredictable challenges.
The right choice of the field in which to invest
With 10 years in shape, Octavian Frunze resorted to establishing the Octavian Nicolai Frunze Farm. Following the example of his brothers and passionate about agriculture, he turned to growing vegetables.
"We plan to start an animal farm, but after a rigorous analysis of the necessary investments, I opted for growing vegetables, both in protected land and in greenhouses. We found that investments in greenhouses were more sustainable and financially manageable. I strongly believe that it is essential to make informed choices and to carefully analyze the costs and benefits of each investment before you set out," reports the farmer.
Loans and loan management
Octavian had different experiences with loans, noting that the first loan from a microfinance company had a very high percentage. The lesson learned was to carefully read the terms of the contract and choose financial institutions with favorable conditions. Currently, he chose to work with Mikro Kapital Moldova, where he found advantageous conditions.
"When we rush to access credit, we are often captivated by the excitement of starting a new business or the desire to develop an existing one. However, skipping the contractual details can lead to unwanted problems down the road. In my case, I found myself with a loan in unfavorable conditions, with a very high percentage. The first years I had to direct almost all my income to pay the contract", claims Octavian.
Farmer recommends that those who intend to obtain a loan invest the time necessary to read each clause and take responsibility for understanding each aspect of the financial agreement. Among the key aspects they should carefully consider are the interest rate, the repayment period, any fees or penalties, and the terms regarding contingencies.
For example, it is important to know how late repayments are handled or how penalties apply if economic circumstances change. The wisdom gained in credit management is essential for financial success, Octavian Fruze believes.
"This year I decided it was time to expand my greenhouse area, for which I opted for Mikro Kapital, where the credit conditions were more favorable. This time I was very attentive to the clauses of the contract", mentions the farmer.
Strategic planning and financial analysis
In order to increase profitability, Octavian Frunze decided to diversify the business by expanding the cultivated area. The choice to plant peppers in new greenhouses and to plan an increase in total area demonstrates the importance of adaptability and diversification in the agricultural environment.
"With 7 greenhouses of 14 ares and a large greenhouse of 8 ares, I want to expand the area by another 25 ares. Thus, lending becomes necessary because the money obtained from the greenhouses was invested in the open field and we found that this is not a profitable field. I plan to start planting in the new greenhouses in April, if the weather outside allows for the welding work to be completed. In the future, depending on the evolution of the business, I want to switch to a wood-burning boiler and install a generator to manage possible power outages", says the farmer.
As a result of the lessons learned, Octavian understood the importance of calculating expenses and strategic planning before taking out a loan. He did a detailed analysis of the costs of building the new greenhouses and took only the necessary amount, avoiding taking on excessive debt.
"After carefully analyzing the costs of the construction of the new greenhouses, we took only the necessary amount - 400 thousand lei - directing half of it to the purchase of metal, since we are working on the construction together with my father. And if necessary, we call on day laborers. Then we intend to apply for post-investment subsidies", says the farmer.
Income management
Octavian highlights responsible money management, including directing a portion of income to pay workers' wages and to deal with contingencies such as damage from adverse weather conditions.
"Throughout our career in agriculture, we've built up a solid understanding of how to effectively manage your bottom line. The funds from our agricultural activity are directed to various needs, such as the procurement of quality seeds, the purchase of essential wood for horses