The farmers need a finance facility to cultivate their lands and get involved in serious farming. They need to improve their financial literacy to be able to become professional farmers and get to understand the dynamics of the financial aspect in agribusiness. This facility need to be affordable with low accruing interest.
Unfortunate, The marginalized farmer does not have easy access to formal financial inputs to venture in agribusiness. The conditions current service providers, like Banks, MFI, SACCO’s, put to get a loan are too strict and too rigid. Many farmers do not have back accounts in the first place and the interest charges are too high. Furthermore, these loans are generally non flexible loans and not specific designed to agricultural products. Banks and other financial institutions don’t train their members on money management. This withholds many youth and willing farmers to even start thinking about it.
As FreeKenya we are a helping partner to link farmers to affordable capital resources, financing and financial services to improve their farming and agribusiness activities. With an integrated approach we involve the savings and lending scheme in our training program to provide financial prudence and inclusive knowledge on financial management. Farmers on the ground need an understanding lending partner who will not only offer Loans but trained on the investments of the finance and what to purchase and how to value their assets (produce) upon harvest ready for sale. The gap on resource abilities in terms of finance can also be enhanced and closed by having a learning finance scheme through a lending partner enhanced where farmer groups pull together resources and institute a project together. The finance facility need be cheap and affordable with Low accruing interest.