Lubov has been operating an agricultural business for about 16 years in Sinelnikovsky region, Dnepropetrovsk Oblast. She owns 15 ha and leases 60 ha of land. Her main products are sunflowers, wheat and maize. Lubov uses her own agricultural equipment to do the field work, but she would like to update the equipment, so she has applied to ACM for a baler.
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About Agro Capital Management LLC:
This Kiva loan will be used to provide borrowers with needed goods or services, as opposed to cash or financial credit.
ACM uses a financing model that is relatively unique. Typically, a microfinance institution will lend money to farmers, who then purchase products they need to have a successful harvest and pay back the loan. In ACM’s model, the organization purchases the agricultural goods before reselling them to small farmers on an affordable payment plan. This allows farmers to begin using the goods they buy without having to pay in full upfront.
As part of ACM’s offering, clients receive training to improve crop yields. In order to cover its costs, the organization charges a small service fee. The amount of each Kiva loan includes both the cost of agricultural supplies and the service fee. As with all Kiva loans, repayments will be returned to lenders on the schedule outlined.
A loan of $5,000 helps Lubov to pay for mechanized equipment (a baler).