Source of Finance for Farm Business
Are you into Farming Business or you intend starting one, then you need capital to start the business and the source of finance includes;
Farmers can get credit or loan to finance their farming business through any of the following sources;
1. Agricultural Bank - Agricultural bank was established to grant loans to all potential farmers or merchants. Only farmers can borrow money from the bank hence its called Farmers Bank e.g Nigeria Agricultural and Cooperative bank ( N.A.C.B)
2. Commercial Bank - Commercial banks are major sources of lending to Agriculture. Commercial banks like Citibank, firstbank, U.B.A have agricultural departments where farmers can get loan to carry out their farming activities.
3. Supervised Agricultural credit scheme - This scheme are set up with the purpose of granting loans to farmers and are usually supervised by Bankers bank e.g The Central Bank of Nigeria, Bank of America and other Apex banak of different countries.
4. Thrift and Saving Societies- Members contribute money either daily, weekly or monthly. At the end of an agreed period, the money is paid back to members which they can use for their farming activities. Real Also - how to make money from Farming
5. Money Lenders- These are people who lend out their money to farmers to enable them to produce. But the Money will be charged at high rate.
6. Cooperative Societies - These are people who come together to pull their money together to produce.Members can easily get loan from from the these societies for their farming business.
7. Self Finance- This refers to the money saved by an individual which is used to finance his farming activities.
8. Individual - Farmers can also borrow money from friends and families to finance their Agricultural business. Read Also - how to make money from snail farming
As a farmer, these are ways and sources of finance to starting a farming business or otherwise called Source of farm Finance. Thanks fro reading.