Money for farming
Over the past decade, microcredit facilities have mushroomed and many groups of small farmers and landless people, notably women have benefited. Microcredit however is often not enough to help farmers build viable and sustainable farms.
Farmers who want to invest in making their farm sustainable are faced with the challenge of transition financing. They have to make a serious investment in order to make their farm sustainable. Their land will pay them back for the investment but only after a few years. In the mean time, they have to survive. Banks have standardised products which often do not support farmers who choose to go for ecologically sound practices as these are considered as not economically viable. So where to go for support?
Table of contents:
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1 - 1Cover photo
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2 - 2written by Edith van WalsumThree hundred bright minds from business and industry, science, governments, NGOs and farmers’ organisations, recently met in Brussels at an international conference called “The Art of Farming”. They explored the potential of sustainable business models that include small-scale farmers. Is this too good to be true?
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3 - 3written by Mireille VermeulenLa Cabrita is a real family farm. Guicella Igreda Lix (40) and her father Don Manuel (80) manage the goat breeding and forage cultivation together.
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4 - 5Money: Bridging the gap between supply and demand
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7 - 7written by Robert Neil Cunliffe , Willem van Cotthem , Ismail Stephen Kimole , Kazeem Akimboye , Richard Lubega , Oscar B. PosaLivestock services: free or fee? (1) / Livestock services: free or fee? (2) / Needed: a change in strategies / My dream / Mistake / Keep it up
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8 - 9written by Petra RooijakkersMoney for farming not only means access to credit, but also access to other financial products and services. Small-scale farmers can also benefit from being able to insure themselves against risk and being able to save. When it comes to money, there is a gap between what small-scale farmers need and what they have access to. But this gap can be overcome, as this issue shows.
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10 - 13written by Alfred LakwoHow can farmers access capital when commercial banks consider them “unbankable”? The solution lies in making the most of local resources. Rural villages can raise their own funds and use these for loans, says Alfred Lakwo, of the Agency for Accelerated Regional Development in Uganda.
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14 - 17written by Jorge Chavez-TafurInterview > Jose Antonio Osaba - The World Rural Forum wants the United Nations to declare an International Year of Family Farming. In an interview with Farming Matters, José Antonio Osaba explains why. “Family farming can be a very significant instrument to overcome hunger and poverty.” Osaba and his team have set themselves a huge task, but then, he says, problems in the rural areas are also huge.
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18 - 20written by Nawa MutumwenoThe eagle flies in Zambia: Zambian Breweries, a subsidiary of the brewing giant SABMiller, produces a local beer from locally produced sorghum. Contracts with a large number of subsistence farmers provide these farmers with a link to a commercial market, and a secure income. Advanced payments help farmers buy the necessary inputs. Is the Eagle beer case an example to follow?
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21 - 21written by Rachel ZedeckMore than 124 million acres of land has been acquired by foreign investors responding to global food shortages, fluctuating oil prices and growing water shortages. The phenomenon is being exacerbated by the EU’s mandate that 10 percent of all transport fuel should be sourced from plant-based biofuels by 2015. But land grabs and food aid do not help African farmers, says Rachel Zedeck
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22 - 24written by Jaime ter LindenA new approach to upscaling agricultural finance for the missing middle.
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25 - 25Subscribe! / Call for feedback on learning about cropping systems / Renew your subscription NOW / September issue: Water and sustainable agriculture
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26 - 27written by Neil Sorensen , Adam DruckerThe International Year of Biodiversity gives us a good opportunity look at agriculture’s relation with biodiversity.
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28 - 30written by Koert JansenFinance is a key for maintaining committed trading relationships. Value Chain Finance helps farmers’ organisations bridge the “payment gap” between harvest and export.
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32 - 33written by ILEIA editorial teamMind! New in print
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34 - 34written by Wirsiy Eric FondzenyuyHow reading a manual on documenting experiences led to a new lobbying tool. (Wirsiy Eric Fondzenyuy works for CENDEP, the Centre for Nursery Development and Eru Propagation, in Cameroon. At the end of last year he contacted ileia, wanting to share the results of their documentation efforts. This is part of their story.)
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35 - 35written by Mundie SalmWhat exactly is microfinance and how does it work? How can you make a budget and why is it important to save? How can you set up a farmers’ cooperative, village bank or self-help group? The Rural Finance Learning Centre helps you to find answers to these questions.
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36 - 39written by Jan Douwe van der PloegYes, credit can be a useful instrument for farmers to improve their income. But it does have its drawbacks. Credit programmes often undermine farmers’ independence and oblige them to take all the risk. Jan Douwe van der Ploeg assesses the pros and cons, and looks for alternatives.
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40 - 41written by Giovanne Henrique Sátiro Xenofonte , Kolawole Ogundari Maxwell , Sue Prince , Mariam MapilaMany farmers, in the same way as the organisations that support them, are trying out innovative ways to secure the financial recources they need. These are only a few examples of the many interesting ideas and practices seen in the field.
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42 - 42written by ILEIA editorial teamFarmers learn continuously; they carry out experiments and regularly develop new ways of farming. In many cases, they are supported by projects or programmes that seek to enhance this learning. But farmers and extensionists are not the only players in the field.
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43 - 43written by Anil GuptaAnil Gupta wonders why, if biodiversity is so important, there is so much poverty in regions rich in biodiversity. How can we justify the billions of dollars that have been spent on inter-governmental panels with practically no change in the rights of, and opportunities for, the people in these regions? National governments and civil society must bear some responsibility for this situation and for changing it.
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44 - 45written by Thomas LosterFarmers need more than loans to sustain their business. Micro-insurance can help farmers avoid falling into poverty traps because of disasters.
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46 - 47In the International Year of Biodiversity one can’t avoid the issue of genetically modified organisms (GMOs). What’s going on in the world with GMOs? Our partners report.
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48 - 48Back cover photo
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