It’s normal for anyone to think the Agricultural Development Bank (ADB), a state-owned financial institution meant to develop the agric sector in Ghana should be a reliable place for farmers to get financial support to expand their farms for job creation.
However, stories from both small and large-scale farmers over years show that the bank has failed to support farmers because of the nature of the business and the risk involved.
The 2021 National Best Farmer, Alhaji Mohammed Mashud corroborated these reports during an interview with the Ghanaian Farmer TV show stating that agric is a very high-risk business resulting in the bank’s reluctance to lend to farmers.
Talking about the challenges that confront farmers like himself in the country, he said financial institutions don’t lend to farmers the unexpected can easily ruin one’s entire farming business. This he said is the reason many farmers are unable to make progress by expanding their business.
“ADB doesn’t lend to farmers because it is a high-risk business. For instance, you can plant 10 acres of crop and any little mistake or drought causes huge loss; what we depend on is rain-fed and if the patterns fail, you’re doomed.
I learned that some time back, they were lending to farmers but they stopped because the defaults were so much,” he disclosed.
When asked about insurance for his farm and why it is important, the CEO of Cudjo Abimash Farms revealed that “we insured with them twice but even with that, there were still problems. Fortunately for me, I have not suffered any natural disasters like bushfires, post-harvest loss for the past 15 years I have been farming so to an extent I am okay. I am happy with the way my operations are going.”
Talking about partnerships with other investors, he stated that farmers need to build reputations so companies will chase them with support initiatives to expand their business saying he gets a lot of input from companies coming to support his work.
“We’re fortunate that there are some companies that give you input on credit. It’s all about building your credibility.”
Mechanisation And Access To Modern Agriculture Methods
According to him, it is always a challenge for local farmers every farming season.
“Mechanisation is another challenge even though the government trying but we still need more. When it’s time for tilling the land, there is so much crowd gathered in my premises begging for tractors to plough their land. Even though it’s for a fee, the situation is sad.”
Source :www.theghanaianfarmer.com