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RIMAIAgribusiness SchoolMy land

D-floor-price Dictionary

Floor Price

The minimum price a buyer or board undertakes to pay

All termsIntroduced in Module 2Open the Toolkit
An open dictionary on a farm office desk
Plain meaning
The minimum price a buyer or board undertakes to pay
How to use it
Treat a floor price as the minimum the venture can rely on, then check how quickly the board actually pays. A floor that pays late costs working capital.
South African benchmark
South African grain prices are market-set with no floor.
Country notes
Zambia's FRA floor for maize was K6.94 per kg in 2026; Namibia sets maize, wheat and mahangu floors; Zimbabwe's GMB announces producer prices.
Go and read
C2 Lesson 2.1, M2-U2
Calculate it
T-M1-05 Market Price Comparator
Library sources
LIB-A004
See also
SAFEX, Strategic grain reserve, Off-taker
Twelve-month cash flow showing money out before money in and the lowest cash pointTwelve months of cash: money out first, money in laterJFMAMJJASONDRed dot: the lowest cash point, the working capital you must fundMoney in (sales)Money out (inputs, labour, loan)Running cash balance
From Module 2, Money for the Farm, where this term is introduced.

Introduced in C2 Money for the Farm.