A loan helped increase his farming profit margins in order to build a better house for the family.
Abubakar is a maize farmer from the rural area of Kaduna, a state located in northern Nigeria. He looks forward to earning higher profits from farming. As a member of Babban Gona, Abubakar has access to high-quality inputs and enhanced farming services, which help to increase his yields. Furthermore, through training programs, Abubakar now practices farming in a more sustainable manner. For example, the fertilizer education Abubakar receives focuses on microdosing fertilizers to lessen environmental impact and increase yields.
Abubakar expects to reap 35 bags/hectare, or double the national Nigerian average of 18 bags/hectare, from this year's harvest. Abubakar, however, needs a harvest advance loan to avoid losing margins by selling his maize at harvest, when prices are low due to the high supply of maize.
The harvest advance loan will provide Abubakar with cash equivalent to the value of his maize at harvest. Babban Gona will then help Abubakar to store his maize and sell it at a higher price in the future, guaranteeing higher returns. This is crucial to Abubakar, as he plans on using the increased income to build a better house for the family.
This loan is special because:
It supports smallholder farmers and helps them increase yields.