FADAMA SEED LENDING AND REPURCHASE CONTRACT AGREEMENT (SMAP FARMERS NETWORK)

A platform through which crop seeds and farm operational cost are provided to farmers while investors repurchase after harvest.

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Written by Ozuluonye Shedrack

Updated on 09:04, Jun 21, 2016

EXPLAIN YOUR IDEA

SMAP system

Mr Joseph one of the farmers who lead to other small scale farmers in his community. he said they cant wait for our platform soon.

Harvesting of potatoes, taking place during our feedback discussion.

Jigawa state rice farm land and the richest man.

The richest man in Africa will also benefit from this idea. Not all his products will come directly from his farm land.

A strategy developed through time by SMAP Business services and consulting limited, a trusted intermediary is to help Finance, provide quality inputs and connect small scale farmers to a ready market which have always been a major problem.We adopted a local name called FADAMA, which is a grouping system in Nigeria through which small scale Farmer are identified, assisted and mobilized by sponsors and investors. The problem of financing farmers has limited farmers. from our research so far, farmers are also faced with both systematic and unsystematic risk which gives room for doubt of being able to pay back . conversely, small scale farmers inability to insure their crops to an insurance company further expose them to other risk associated with farming. There are also faced with the challenge of securing credits, measures to eliminate waste and spoilage,poor health, limited education, low standard of living and low income. We help identify all relevant stakeholders and interested collaborators that will strategical solve these problems faced by small scale farmers. the idea focuses on providing seeds and other operational cost associated with the provision of a particular type of agricultural produce. After harvest, investors in turn buy them off and sell in a given location with high demand. Examples of companies partially practicing this in Nigeria includes, Olams rice farm in Nassarawa state, Dangote rice farm in Jigawa state. through this innovation, we hope to be next

WHO BENEFITS?

After sales, new pumpkin seeds and other vegetables are replanted.

initial stage of farming

Small scale farmers farm land for vegetable. Off takers can pay to farmers through our platform ahead of time to grow a particular vegetable like pumpkin leafs and repurchase them at source after harvest.

At this point off takers are already queuing to buy off.

Our beneficiaries includes,small scale farmers, investors,Nigerian government,financial institutions, consumers and other yet to be identified stakeholders. Quality produce will increase the health of consumers. Access to finance &Increased income will enable small scale farmers improve their diet,wellbeing & education Increased Government revenue to fund health, education & intervention programmes.Increase exportation thereby correcting balance of trade.Increased return for investors capital

WHERE WILL YOUR IDEA BE IMPLEMENTED?

Our idea will be implemented in Nigeria starting with Benue state,the food basket of the Nation and other countries during our expansion plans.Nigeria have diverse climate and about80% of the land mass is arable amounting to about 82 million hectares

ARE YOU IMPLEMENTING IN AN ELIGIBLE COUNTRY?

EXPERTISE IN SECTOR

I’ve worked in a sector related to my idea for over a year

EXPERIENCE IN IMPLEMENTATION COUNTRY(IES)

Yes, for more than one year.

TELL US MORE ABOUT YOU!

We are a registered organisation in Nigeria.Our services includeAgro support,finance consulting,business development & Marketing.As part of our effort to meet our clients need we look and work with collaborators in solving community challenges.Our office is Behind Orende School, Makurdi,Benue State.

IS THIS IDEA NEW FOR YOU OR YOUR ORGANIZATION?

Farmers will benefit more from low premiums and higher insured sums as agricultural insurance is an effective mechanism for reducing the losses farmers suffer due to natural calamities and outbreaks of pests and diseases. It enables farmers to obtain credit and financing for investment in new technologies, tools and equipment to sustain and enhance their productive capacity. It also assist farmers in regulating cash flows and rehabilitate damaged enterprises. This insurance policy is feasible

This idea is new to my organization and It differs because this time we are proposing to work with stakeholders in solving identified challenges in the agricultural sector, that will translate into more job creation and provision of food for the world through a chain reaction.

HOW IS YOUR IDEA UNIQUE?

(1) This idea requires an integrated innovation strategy that incorporates technological and financial innovations, capacity building along the value chain, enhanced market access for smallholders producers, cross cutting value chain coordinating mechanism and other elements to achieve impacts at scale. 2)Our capacity building program among others will help integrate record keeping practise which will enhance improved decision making (3) This idea borders on Agriculture which is not among the most wanted profession of majority of job seekers but remains the hope of Nigerian government and stakeholders (beneficiary) in correcting balance of trade, job creation and food production leading to more export. By this, we are certain this idea will gain both local and international attention. Similarly, we have designed in the past loan packages for traders, farmers with viable business plans within our location. If this idea is successfully implemented, we are projecting a season of bumper harvests and improved livelihood of small scale farmers Nation wide.Other countries can explore this opportunity as an effective strategy in curbing wastage and spoilag

WHO WILL IMPLEMENT THIS IDEA?

As a team of business development and finance consultants, we will foresee, manage and monitor our idea to ensure it gains full attention and corporation through collaboration/partnership with stakeholders. The role they will play includes,funding, provision of resources, training, interventions and mobilizing of farmers into our network while we ensure proper documentation, linkage services and other action plan as stipulated in our idea.The profile of team members are on each profile page

HOW HAS YOUR IDEA CHANGED BECAUSE OF BENEFICIARY FEEDBACK?

Where we intend to cover during our expansion plan.

We also considered physically challenged small scale farmers in Nigeria, their skills will further interest you my viewers.

We cant wait for smap farmers network says small scale farmers during our feedback session.

Harvesting of potatoes by small scale farmers, its only done when buyers are seen, without a buyer they become waste at the end.

Our strength lies in what community members wants.

Interaction with my new found friend, also a small scale farmer who identified finance as key to curbing farm waste.

Small scale farmers profit working

(1) Before now, our idea was to directly use the platform to get data from farmers,but after a feed back session with community members we were introduced to an existing FADAMA platform that we can work with while new members get registered as we progress. This will also save our operational cost. (2) We intended to appoint leaders in each group but now we will use the existing leaders already doing well in over 800 FADAMA family members in Benue State and an average of 35 farmers in each family, multiplied by other state in Nigeria. (3) Beneficiaries requested for an online presence of our platform to ease resource sharing. http://benue.jiji.ng/other-services/smap-farmers-network-investors-invitations-2419983.html,this link was used to text run our idea on the 18th may 2015. we received request for the supply of advertised unripe mango. this will help expand market our option (4) previously we went with age bracket of intending members as 18-65 but we were told from feed Back to adopt 21-65 based on practical scenario. 5) We improved our communication channel to suite different range of farmers 6)We adopted good farming practice to manage risk

WHAT ARE SOME OF YOUR UNANSWERED QUESTIONS ABOUT THIS IDEA?

(1) What percentage of waste and spoilage could be said to have been achieve using this idea during the implementation phase. (2) How do we get investors and off takers at the international markets when faced with Bumper harvest? 3) How do we get improved varieties of seeds and seedlings and which method should we adopt in distributing them? 4) What is our chain of distribution of agricultural input ( finance included)?

WHY DO YOU THINK THE PROBLEM YOUR IDEA SOLVES FOR HASN'T BEEN SOLVED YET?

The problem this idea solves havent been solved yet because, Going by feedback there were identified challenges yet to be solved.It was also clear that more interventions were needed, so we are employing a holistic approach that brings in the skills of many partners to reduce food waste and spoilage and also increase their livelihood. We will work with all relevant stakeholders like experts for capacity building, suppliers to ensure that all farmers have up to date knowledge on good farming practice and offtakers in expanding options for farmers to sell, which will improve information about market price that can improve negotiating power.

WHAT WOULD YOU ULTIMATELY LIKE TO ACHIEVE WITH THIS IDEA? WHAT IS YOUR NEXT STEP TO GET THERE?

Ultimately, we aim at reducing food waste and spoilage. And improving the health, education and overall well being of small scale farmers and their families by establishing a synergy to tackle challenges Our next step includes but is not limited to, 1. Preparation of a comprehensive financial plan 2. Development of a dynamic website for market access, database management and resource sharing 3.building partnership and Sourcing for funds from interested investors 4.Running a pilot program

MEMBERS OF MY TEAM HAVE BEEN WORKING TOGETHER FOR:

Between 6 months and a year

MY INTENDED BENEFICIARIES ARE:

Within 50 km of where our team does most of its work

MY ORGANIZATION'S OPERATING BUDGET FOR 2015 WAS:

Under $100,000

One year after the platform was implemented

What i and my family members had to say about the idea

Small scale farmer hope for a day when waste and spoilage will be eliminated

It was not an easy task to family members, but they added value to my work

When idea gets home, family members play their part.

Feedback suggest insurance premium are available to all types of farm. the difference is that the higher the risk the higher the premium. see calculation above

From feedback, do you know that, small scale farmers in Nigeria are already in groups, peered and attend regular meeting at the community and state level through a government supervision form under the agricultural and rural development authority. A state have an average of 35 farmers in a family headed by a leader and up to 800 families in a state. Multiplying by 36 plus capital territory, we have approximately 29600 small scale farmer’s family group in Nigeria facing over 42% of waste.

Getting feedback from the right source.

Awaiting harvest

continues farmer becomes the remedy at an advanced face of our idea.

My visit to farmers where we discussed the idea and with a view of implementing same this planting season. This interest is there already. The idea sounds impressive.

Community leaders are not excluded to guarantee that such seed if Planted would not be diverted.

Our team idea was from the FADAMA practice In Nigeria. the term “Fadama” is a Hausa name for irrigable land—usually low-lying plains under laid by shallow aquifers found along major river systems. In addition to providing a source of water for livestock during dry seasons, fadamas also support large and diverse resident or transient wildlife including herbivores, carnivores and migratory birds. today the term FADAMA is now used to describe farmers support groups. What a world!

As part of our effort in providing finance and other necessary assistance to farmers in Nigeria and beyond, We have intention to launch a platform known as SMAP farmers Network. This platform is aimed at collecting data of potential farmers in rural communities through an existing Fadama group in Nigeria and to further provide answers to challenges of waste and spoilage how to improve livelihood. We will also use the platform to educate, finance and share marketing informations at the right time to farmers.

We believe there are crops that are highly demanded at the international markets, like Benni seeds, cotton, cassava, cashew etc , hence our platform will facilitate a process of assessing farmers in key areas and ensuring their challenges are addressed by sponsors and investors. We believe companies and individual investor are looking for farmers they can fund to grow a particular Seed, but then with an acceptable credit policy and a contract agreement reached between parties using a trusted platform.

With financial resource as the constrained element, angel investors, Government agencies, international development agencies can be a useful tool in providing the required seeds to farmers without necessarily committing physical cash through an innovated Agro based financial market. we strongly believe Quality Seeds (inputs) can be supplied to identified farmers in the required quantity while farmers implement the planting and harvesting with quality harvest instrument ( mechanised farming) to reduce damage as recommended by community expert. There will be a ready market,off takers and investors who introduced the initial seed. They buy up the harvest produce at an agreed market price. The existence of this idea is partially from two major selected Entrepreneurs, but with an innovation to repurchase and create a larger market. This idea seem to be the strategic way that small scale farmer can be assessed, without any form of political involvement but young, talented and experienced innovators with ideas to developing platforms that are capable of changing the world in key developmental areas. Our major concern now is the methods to be deployed in repurchasing this harvest should there be angel investors and post advance monitoring and supervision. This idea is to reduce the possibility of waste and niches to financial resources using SMAP farmers Network.

SCOPE OF OUR AGRO SUPPORT SERVICES

1)Supporting small scale farmers through the provision of finance and other agricultural input (quality seed and seedlings) in Nigeria and Africa durig our expansion plan starting from Benue state.

2) Provision of a ready market at the local and international level eve in case of bumper harvest

3)Ensuring the availability of food all year round.

4) moving from subsistence to commercial farming

SMAP FARMERS NETWORK, will be a platform through which crop seed and other financial resources are provided to small scale farmers in Nigeria and beyond and with a concrete agreement reached to repurchase harvest from farmers by sponsors, investor or entrepreneur’s with effective demands. For majority of small- scale farmer’s access to financial resources is tenuous, at best. The experience cash influxes after crops are harvested and sold at the market, but tend to have limited access to capital at crucial moments before growing seasons begin. In this opportunity area we are committed in providing ways to smooth the income of small scale farmers both to increase their ability to invest in measures that will improve their outputs, but also in the health education and well being of their families.

We are aware as finance consultants,that there seems not to be any sort of financial market for small scale farmer that is all encompassing, hence we are resolute in insuring that small scale farmers and their family members who toil all day to produce food for the world also access financial resource when they want it and how they want it provided they are character wise positive after assessment by our team and other relevant FADAMA coordinators.

Our idea will commence with data collection using a networking model that will benefit those collecting this data in the way and manner we presume and effectively filling them in our intended website, also farmers can have access to this website to download, share and register new members in their respective locations bearing in mind the segment as designed. Also where applicable we may be working with traditional leaders to be able to gather momentum. Small scale farmers based on our research will be grouped with certain parameters to allow room for accessibility. (Existing small scale farmers family are between 35-40, hence we may be adopting same). What we anticipate from small scale farmers during the first phase includes data collection, secondly collections of finance challenge areas and or type of land and seed crops needed and operational cost of farming a particular type of seed and quantity. This whole process will finally translate into a wider outreach to government, sponsors and angel investors in providing answers to small scale farmers at large and further using the platform to train, create market.

As an organization our targeted clients/ member will be called SMAP FARMERS, must not necessarily be a Nigerian but a resident of Nigeria and any other African country who grow crops and with certain limitations we now call small scale farmers challenges. Other features includes but not limited to:

(1) should be a farmer or intending farmer with passion to start small and grow big.

(2) Willing to be a leader or follower if appointed by our team in their locations or existing leader where applicable .

(3) Willing to participate at the state and national level of the network.

(4) Must provide farming objective that suites our interest areas.

(5) Have fulfill any legal requirements attached to your type of farming.

(6) Must fall within the age bracket of 21-60 years as recommended by community expert.

(7) should be willing to share ideas and individually connecting our platforms to other farmers in your respective communities, also ensuring their data are captured by our team in you location.

OUR IDEA MISSION

At SMAP FARMERS NETWORK, our mission is to open room for a wider participation among farmer who share ideas through brainstorming in peers and using our strength, platform to attract angel investors, Government, international development agencies and sponsor around the word who share similar view.

IDEA ACTION PLAN AND STEP

Informing farmers through various means like existing Fadama groups facilitators, coordinators social media and zonal fadama coordinators. While they accept to provide relevant data that will aid us accessing their strength and weaknesses using SMAP farmers data collection forms.
Farmer after being captured accepts to be segmented in a group considering their locations, soil test, farming practice,type of farm and areas of interest.
Farmers attained peer gathering and moderated by their group leaders as determined by our team in their location to learn newer opportunities within our reach and considering their challenges.
After a careful study at the group level a second stage of assessment will be carried on every state and local government to further addressing identified finance challenges with the aim of meeting small scale farmer’s financial needs through investors who are possibly looking for them and their products.
After a careful study of different group at the state and National level , our management team can now provide a comprehensive report of farmers activities using a suitable template or business plan to intending and proposed angel investors, government agencies, financial institutions.
Upon acceptance of our proposals farmers gets support from different openings available and a linkage is reached.
Our chain of distribution will be from stakeholders to SMAP network and directly to farmers to cut cost and avoid deviation
Our teams conduct periodic post advance and monitoring assessment to see if there are deviations from set standard and recommend for a change to beneficiaries (farmers).
Where satisfactorily,we will recommend for a better opportunity in the future to enable farmers grow from small scale to large scale
As soon as harvest is done and based on the initial contract agreement reached with investors and offtakers to either repurchase the harvest or we create a market in a highly demanded locations, we can also go ahead to implement our other market option and farmer fill happier.

HOW BEST WE THINK FARMERS SHOULD GUARANTEE OUR PROPOSE ANGEL INVESTORS INCLUDES

Farmers must have at least 10% of any financial resources needed as equity.
Must have a physical asset in their respective communities.
Small scale farmer must be identified/ referenced by a community leader as appointed in their locations.
Must have been with us for up to three months and considered as one with a positive mind set and with a good character.
Must meet specific sponsors terms and conditions.
Must undertake not to divert or relocate until after an agreed term comes to an end.
Must provide guarantor and next of king in an event of a breach of contract agreement or frustration.
Farms must be genuinely insured where applicable to an insurance company.
Must have an account with a commercial bank or community bank in their locations.
Must be able to apportion more of its financial resources to operational cost than fixed asset cost of his intended or existing farm. (30% is to 70%) respectively.
(11) Members in a cooperative society and duly registered can a better relieve to our team, provided they have one agenda.

Using the 5c model we are optimistic the SMAP FARMERS NETWORK will go a long way in meeting the needs our proposed and intending sponsors, angel investors etc.

WHY WE THINK OUR NETWORK WILL BENEFIT INTENDING STAKEHOLDERS?

Going by the recent economic challenged face by developing Countries like Nigeria with a fall in crude oil price at the international market which has sustained the government and serve as a means correcting balance of payment through trading of crude oil at the international market, Nigerian government through different channels focuses on agricultural sector which was the major sector of the economy some years back. Today the country now import even tooth picks, food that the country was known for. With different calls for an improved farming system and finance considered to be the limitation, we are optimistic of using our idea the right way to mobilized angel investors, or collaborate with international development agencies in curbing constrained element among small scale farmers in Nigeria. getting the right crop seed and harvesting equipment have been identified by existing community experts in agriculture.

Using the 5c model we are optimistic the SMAP FARMERS NETWORK will go a long way in meeting the needs of our proposed and intending sponsors, angel investors and most especially the family members of small scale farmers who account for up to 42% waste and spoilage.

WHAT 5C MEANS TO OUT TEAM

(1) Character of users MUST be above 70%.

(2) Terms and conditions of using the platform by users must be met 100%

(3) Capacity of Users must meet 70% Based on our rating.

(4) Capital of users (farmer 10%) while investors unlimited.

(5) collateral of user small scale farmers based on grouping or guarantors.

Written by

Ozuluonye Shedrack

An Entrepreneur