Well, financing has been one of the biggest huddles in farming. Below are some of the tips and solutions that you might use to curb the challenge.
- If you are employed, you could talk to your bank and secure a loan through your salary
- If you are a full time farmer, it will be ideal to pass your farming proceeds through your bank account, this creates a history which is important in determining your ability to pay and also your payment schedules. You can then secure a loan with a title deed or your tools and machinery.
- If you take your produce to a reknown marketer like NCPB, KTDA etc, then you can always secure financing through an arrangement between the bank and the marketer.
- Join a micro-finance or cooperative society. They usually have crop and animal loan products that you could acquire. Create a good relation for the sake of future borrowing.
- If you are confident that you will recover the capital, you could pitch your enterprise to a friend who can offer you the capital. You can involve a lawyer to assure him or her that she will get back the capital plus the interest after a certain period. This is a good strategy for repeat farmers, controlled farming and contract farmers.
- You could try to do contract farming. Banks usually finance LPOs.
- Approach Agricultural Finance Corporation (AFC) with your proposal. AFC is the farmers banker.