How to use cows as collateral to get a loan

Young Victorian farmers may soon be able to borrow a cow from a more established dairy farmer in an effort to assist them to get into the industry. 

 United Dairy farmers of Victoria (UDV) said it was planning to set up a 'cow loan' scheme which would help new farmers get started. Damian Murphy, a dairy farmer from Gippsland and policy councillor with UDV, said buying a farm and cows could be incredibly difficult for people who did not inherit a farm from family.It's easy enough to be in the industry up to a point," he said. "You can be an employee and work your way up to management, but the problem comes when they want to take that step from being a manager to running their own share farm. 

 "When they need to purchase dairy specific assets, that's when it becomes difficult; it's very expensive." Cows as collateral sweeten loan applications;Mr Murphy said the scheme would work by allowing older, more established farmers to offer a cow as collateral for a younger farmer's loan application. 

This is how it works; a farmer offer up a cow and it would actually stay on his farm, and get milked and everything like that, but it would able to used as guarantee on part of a loan. 

The only reason it would leave the farm or be sold to be cashed would be if the young farmer defaulted on their loan. The younger farmer would be able to use the value of the cow as an asset to approach a bank with the backing of a number of older farmers providing collateral.

 Banks give loans about 30 to 50 per cent of the value of a cow, so the young farmer has had to come up with the other 50 per cent in cash. read more http://www.abc.net.au/news/2016-04-18/cows-as-collateral-young-farmers-borrow-a-cow/7334854

CHICKEN PROCESSING IN LIVE BIRD MARKET.

Attaching a modern processing plant to an abattoir will increase the profit revenue of poultry farmers.The plants can be zoned in various districts,this will control influx of various birds from different location.This will enable disease surveillance and proper tracing of products.

FUNDING AGRICULTURAL BUSINESS.

Farmers just like any other business,may need to lean on a financial arm for support at a point in time.Many farmers dont know the opportunities they have to access these facilities, or how to access them and grow. Farming is a lucrative venture duly supported by government,financial giants,cooperative bodies and micro finance schemes. Agricultural loans are of various types , can be accessed at various levels and have different amounts as per the size of the project.These loans can be accessed corporately or as individuals,depending on amount involved,most of these loans can only be accessed when the farm has an insurance cover. Agricultural loans and agricultural insurance are intertwined,you cannot do one without the other; before you try to access the loan make sure you are insured.The basic requirement for the loan are as follows; 1) application form. 2) farm records; showing productivity and profitability. 3) Registration record/licence of farm. 4) account details. The banks that give out such loans include bank of agriculture, and first bank ,they also require you have an account with them that is operational.

FARMER'S BAZAAR............LAPO MICRO FINANCE BANK.

The farmer's bazaar was graced by the Lapo micro finance bank.The officials show cased their products and explained how to access the agric loan and expand your agric business.

Lapo---- microfinance bank.

LAPO-MICROFINANCE BANK; lifting the poor out of poverty, and improving lives.If you are thinking of starting a business? think LAPO-MFB. Do you want to expand an existing business? think lapo. LAPO Microfinance Bank is a pro-poor financial institution committed to the social and economic empowerment of low-income households through provision of access to responsive financial services on a sustainable basis. The Institution was established in the late 1980s as a Non-Governmental Organization (NGO) by Godwin Ehigiamusoe in response to the effects of the implementation of the Structural Adjustment Programme (SAP) in 1986. In 2010, LAPO MfB obtained the approval of the Central Bank of Nigeria (CBN) to operate as a state microfinance bank and in 2012, it got an approval as a national microfinance bank. Over the years, LAPO MfB has emerged as a leading institution delivering a range of financial services to over a million people in Nigeria. The LAPO MfB core values that are: Integrity Innovativeness Simplicity Excellence Customer- is king.

AGRICULTURAL LOAN!!

LEARN HOW TO ACCESS IT AND EXPAND....

AGRIBUSINESS: AGRIC INSURANCE.

 AGRIC INSURANCE. Agric Insurance policies are to facilitate better production by protecting the farmer's capital/investment and also use it as a tool for economic growth. Agric insurance is important for the growth and development of the agricultural sector in any economy.

 

The essence of agric insurance is to protect farmers from losses resulting from hazards such as flood,fire,pest,disease and emergency control measures such as in case of outbreaks of African swine fever,bird flu e.t.c

  .Agric insurance is also relevant in abattoir operations,with particular reference to condemnation of carcasses and  organs in disease conditions and transportation accident. The benefits of insurance are enormous,aside the monetary compensation, there is access to professionals who over- see the project,certified animals are procured to start the project,data of farmers & operations are generated,it also encourages proper record keeping and disease control measures.

 When agric/animal husbandry projects are insured,there will be proper management ,food safety will be enhanced and wholesome products will be in our market.The fear of running at a loss is the reason why producers cut corners,avoid the necessary management protocol such as vaccination,reporting outbreaks,processing dead animals, and using unconventional feeding practices and unauthorized drugs in production to attain market weight early. 

 AGRIC INSURANCE. The agric insurance sector though a growing industry,still has a lot to do to convince farmers to insure their businesses. A large percentage of farmers dont access this opportunity to their detriment and to the loss of the economy on a larger scale.

The farmers /producers need financial bodies to work with them,to give soft landing in case of loss and to pay commensurate compensations in cases of emergency control of diseases. 

 The farmers cant access certain loans because they are not insured; premium are not fixed and certain diseases are not included in the policies.

 The time to bring the farmers on board the insurance train is now: banks/ insurance companies, the farmers/food processors await your call of pocket-friendly premiums ,better pay-out policy,wider range of hazard coverage and reduced interest on loans. 

 AGRIC INSURANCE: FOR BETTER PRODUCTIVITY, FOOD SAFETY AND ENHANCED HUMAN HEALTH.