Farm Credit Service in a model of One Stop Farming Solution: Green Agro Mechanization
This project hired 19 youths and serves poor small holders by offering access to mechanization, farm credit service & financial literacy.
EXPLAIN YOUR IDEA
Green Agro Mechanization works with small land holder farmers in Arsi and Bale zone of Oromiya region where 65% of the country’s wheat production is sourced. While writing this story, 19 full time employees are working for the company under one shared value: “Making farms and markets work to the farmer”
My company is renting tractors, planters, crop chemicals and harvesters to small land holder farmers for affordable price and supplying crop chemicals. Emphasis has been given also on offering ploughing, harrowing, planting, harvesting and facilitating farm credit services. I arranged farm credit service for poor farmers in a way that they pay only 60% of the mechanization service and chemical expenses during farming season. The rest will be covered by our company as interest free farm loan to be paid during harvesting season. By introducing this innovative credit facility I aim to (1) create loan access to pro-poor small land holder farmers, most of them are women, who have been ignored/marginalized by big banks and local financial institutions due to huge collateral requirements; (2) encourage farmers to become more innovative and market oriented; and (3) maintain long term relationship so that we can sustain and grow together. I believe my company helped small holder to improve productivity and moreover to minimize loss during harvesting and post harvesting loss. 30% of the yield is expected to be lost if small holders harvest traditionally using oxen.
The Ethiopian agricultural system is predominantly subsistence, characterized by the use of traditional farming implements and practices. The beneficiaries this project are small holder living in Arsi and Bale zone of Oromiya region. Tbese area is known for consisting more than 10 million small holders growing wheat, barely and various vegetables. The farm credit service specifically target youth and women who have good and hardworking farming track recor
WHERE WILL YOUR IDEA BE IMPLEMENTED?
My company operates in Arsi and Bale zone of Oromiya region, Ethiopia. The area is known for its productivity and more than 8 million small holders grow wheat, barley and various vegetables which has huge potential for mechanization and pesticide.
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!
Abrhame Endrias is a 29 years old agripreneur from Ethiopia. I established Green Agro Mechanization in 2013 and offering inclusive services to small holder. I am also a lecturer in Arsi University and teach various business courses and interested in innovation, productivity and sustainable farming.