A farmer is someone who engages in agriculture. farming is a combination of raising field crops, orchards, vineyards, poultry, or other livestock. A farmer might own the farmed land or might work as a labourer on land owned by others.
In this article, we will look at the loan available for farmers in Ghana. A loan that farmer can acquire to buy farm seeds, weedicide, pesticide, fertilizers and even pay their labourers with. famers are also essential in our everyday living without a farmer we can’t acquire nutrient the body needs to do it’s daily activities.
There are different types of farmers and the work they do. for instance those who raise grazing livestock, such as cattle, sheep, goats and horses, are known as ranchers or simply stockmen. Sheep, goat and cattle farmers might also be referred to, respectively, as shepherds, goatherds and cowherds.
A dairy farmer is one who engages primarily in milk production, whether from cattle, goats, sheep, or other milk producing animals. A poultry farmer is one who concentrates on raising chickens, turkeys, ducks or geese, for either meat, egg or feather production, or commonly, all three. A person who raises a variety of vegetables for market may be called a truck farmer or market gardener.
LIST OF LOANS FOR FARMERS IN GHANA
Agricultural Production Loan
These loans are provided by Stanbic Bank Ghana for farmers who need short-term credit to pay input costs.
- Business registration documents
- Six months’ statements from another bank
- Three years’ financial statements and cash flows
- Collateral may be required
- Favourable credit bureau report
- You may need to meet other conditions or provide more documents subject to specific borrower conditions.
Potential Returns on Loans for Farmers
- Competitive interest rates
- Access to funds that are not usually available
- A choice on who you want to enter into a grain marketing contract with and when
- Flexibility when buying supplies as you don’t have to go through co-operatives
- You do not have to give them the usual forms of security
- Reduced risk because of Comprehensive Crop Insurance and fixed-price contracts
- The full amount must be repaid at the end of the season. The term of loans for farmers is usually one year, but it can be extended to three years depending on your cropping cycle.
Agricultural Loan By Agriculture Development Bank
The Agricultural Development Bank Ghana (ADB) grants short-term, medium-term, and long-term loans for farmers.
At Agricultural Development Bank, a short-term loan is typically given as working capital to cover the costs of agricultural production, transportation, and marketing. The short-term option can be taken out for up to 18 months.
Purchase of farm equipment, livestock raising, and processing equipment are all examples of medium-term loans. The length of a medium-term loan ranges from 18 to 36 months and,
A long-term loan is for new and existing projects that require a large upfront investment and/or a long gestation time, such as the creation of plantations or cattle ranches. Long-term loans are typically between 36 and 84 months in length.
- Submission of business proposal
- Opening of account with the Bank
- Details of account operation with other financial institutions.
- Evidence of managerial capability to handle projects.
- Evidence that project is not environmentally harmful
- Evidence that the project can generate adequate cash flows to support repayment of facility.
- Provision of security acceptable to the Bank.