Solution for Financing Farmers
We ensure financiers have visibility of the value chain with triggers set in place to ensure full recovery.
Problems and Challenges
Identity
Unverified data about Farmers and their lands,who are they,where are they based, what is their land size, how do we track historicals.
Productivity
Due to a mixture of bad inputs and practices, the output of our Farmers average less than 10% compared to that of Farmers in Brazil and the U.S
Side Selling
Upon harvest, Farmers sell their output to whoever is offering them instant cash and refuse to pay back their loans.
Case Study: CBN Anchor Borrowers Programme
The Anchor Borrowers’ Programme is designed to provide financing for farmers. With close to N300billion spent as at September 2021 on over 3.1 million Farmers, default rates are high. With Banks quoting as high as 90% in certain cases, this calls to question the sustainability of this great initiative.
Value Proposition
Strong Agency Network
Our Extension Agents provide extension service to the Farmers having 10 touch points with the farmers from planting to harvest to ensure recovery.
Powered by Technology
Working with one of our Parent Companies (AJOCARD), our Agents used an ODK-based application to collect data digitally from the farmers from registration to extension and eventually harvest to ensure that recovery is optimal. ODK, an acronym for Open Data Kit is an open-source mobile data collection platform using Android mobile devices and data submission to an online server, even without an internet connection or mobile carrier service at the time of data collection.
Provision of Agricultural Advisory Services
This was done through:
• Selection of quality seeds, chemicals and other inputs required for production.
• Seeds germination analysis as well as other inputs quality assessment to
ascertain the efficacy.
• Offering advises on site selection, land preparation, planting and transplanting.
• Appropriate use and application of Fertilizer.
• In house training with practicals on Good Agronomic Practices (GAP).
• Pest and Disease control.
• Harvest and Post-harvest handling activities.
The process – how it works
Step 1
Lead Farmer Onboarding
Our Extension agents carry out information sessions in Communities where they conduct psychometric tests which determine Lead Farmers on our platform.
Farmer Grouping
Lead Farmers are allowed to recommend 2-4 other people to their groups who will then cross guarantee themselves in case of loan defaults.
Step 2
Community Guarantee
Each Farmer is presented with a form which their District Heads must sign acknowledging that they are known and trustworthy in their localities.
Step 3
Land Mapping
This is about getting essential land data right. Our agents go to the field and capture the Farmers’ land co-ordinates to obtain basic information. Accurate land mapping leads to more accurate and informed decisions when it comes to distribution of inputs, monitoring, intervening or investing in value chains.
Step 4
Step 5
Equity Contribution
The Farmer is expected to make a 5-10% equity contribution of the total Finance availed.
Input Distribution 1
The Farmers get the first set of inputs which they must acknowledge in the presence of their Leaders and Community Heads.
Step 6
Germination Analysis
A couple of days after the first set of inputs have been distributed, the field Agents visit the Farms to conduct analysis of the planted Seeds. The basic idea is to ascertain the condition of the seeds and ensure that the inputs were judiciously used.
Step 7
Input Distribution 2
The Farmers receive another set of inputs during the second phase of input distribution.
Step 8
Step 9
Pre-Harvest
Prior to the harvest, the Agents visit the Farmers and provide materials like bags and threshing services.
Harvest
Harvest is then carried out under the supervision of the Agents who assist them in moving the produce from the farms to the hubs where they are weighed and tested.
Step 10
These 10 steps have worked for us due to the effective implementation of our 3 Value propositions already stated above.
Our Partners
