One of the biggest challenges in farming is financing. Farmers agribusiness funding sources to start or expand projects but in in most cases they fail to achieve this. This mostly comes down to the manner in which we pursue this. Being professional goes a long way in convincing banks or other investors that funding you is a correct decision. A must have in this case is a business plan as well as a proposal. These papers will make it easy to explain your plans as well as show how well you have thought of your farming ventures.
There are several places farmers can look at to get financing.Here are some of the agribusiness funding sources i came across
This is in my opinion one of the best options for farmers especially young people who do not have property to use as collateral in finance institutions. It however involves a lot of convincing as family would want to gauge your commitment and seriousness before lending you the money.
A well drafted proposal/business plan will help your cause.
Banks are another very good alternative when looking for financing. Banks also help farmers get in contact with other successful farmers to learn from them. One disadvantage of banks is the security that you have to give to access loans especially big ones. However with a well thought out business plan, risks are greatly reduced.
Most banks have seen the potential in agribusiness and have set up special financing packages for farmers. For example
a) Equity Bank
KILIMO BIASHARA LOAN – SMALL SCALE
KILIMO BIASHARA LOAN – AGRIBUSINESS
KILIMO MAENDELEO LOAN
KILIMO KISASA LOAN
KILIMO SUPA LOAN
FARM INPUTS LOAN
COMMERCIAL AGRICULTURE LOAN
AGGREGATED FINANCING PRODUCT
Read more about equity bank loans here http://www.equitybank.co.ke/index.php/loans/agriculture-loans
b) Chase Bank
Chase bank also have good packages for farmers. Read more about them here
c) Faulu Kenya
d) kcb bank
e) Agricultural Finance Corporation
3 Youth Fund
Youth fund have a program in partnership with Amiran where young people get 2 greenhouses fully equipped at a cost of 358,344
Read more bout it here http://www.youthfund.go.ke/index.php/loans/agri-vijana
Like i said, most banks have packages for agribusinnes ventures. It is important to get as much information about the loan as possible before taking it. Other than that, banks are very good source of funding for your venture.
There are many other financing opportunities including agribusiness competitions such as the Growthhub accelerator program Enablis Chase bank competition among other. When looking for funds, you should always on the lookout for less expensive alternatives.
Feel free to contribute with other agribusiness funding sources