Expert educates farmers on agric loan

An agriculture finance expert, Mr. Isaac Agbola, has advised the farmers to always take some factors into consideration before applying for bank loans.
Agbola, who is the author of a book titled, “Agricultural finance: A practical approach for lenders and entrepreneurs, said that understanding of the costs, planning and budgeting should be prerequisites to applying for an agricultural production loan, as this not only makes it easier for banks to approve the loan but also ensures that the farmer achieves optimal profitability in any given production season.
He explained that banks often took the seasonal needs of primary producers into consideration when designing agricultural production loans, which usually made them aware of how farmers seldom took advantage of the full range of production options available to them.
He further said that the reason for this appeared to be a lack of financial planning, which, in most cases, was caused by a lack of financial knowledge.
“The irony is that help is readily available. For instance, some banks have dedicated agricultural relationship managers and highly qualified agricultural economists in all provinces who can help with everything from budgeting to establishing the long-term viability of expansion projects.’
“However, it is important, for their long-term sustainability, that farmers develop a personal understanding of what makes their operations tick. This will give the banks confidence to make funds available to them.