Farmers especially (peasant farmers) cannot generate enough capital from their savings to finance their farm business therefore there is need to source for fund/capital.
Capital or money can be secured for agricultural investment in two ways:
1.   External Generation of Capital: This is a situation whereby capital is generated for agricultural investment from outside (not from the farmer’s account)
2.   Borrowing: This means taking money on loan with the understanding that it will be returned as agreed upon at an appointed time. Money/capital could be from any of these agencies.
i.             Co-operative society
ii.           Commercial banks e.g. first bank, GT bank, Skye bank e.t.c
iii.          Agricultural banks e.g. National Agricultural  and Rural Development Bank
iv.          Micro-finance bank e.g. Olofin microfinance, Ibuaje micro-finance
v.            Money Lenders
vi.          Friends and relatives
vii.      Government approved agencies such as National directorate of employment (NDE) Fadama project, rice project etc.
3.   Internal generation of capital: This is a situation whereby the farmer generates the fund or money to finance his agricultural business without going outside to borrow. Money can be secured internally by:
i.             Personal savings
ii.           Sales of farmer/farm’s asset
iii.          Gift

No comments:

Post a Comment

Note: Comments That Advance Information Posted Are Welcome. If Your Comment Is Irrelevant, Inappropriate Or Negative, It Will Be Deleted.

The Views Expressed In The Comments Do Not Necessarily Represent That Of The Owner Of This Website. For More Information, See Terms Of Use, Privacy Policy, Send A Direct Message Or Call 0092348033451818. Thank You For Visiting.