Sustainability Over the Long Term

GTH Farms plans to offer our farmer partners various types of financing and income flexibility, each farmer partner facility will be different from the other based on the need and the level of agreement in place with GTH Farms.

The Nigerian Incentive-Based Risk Sharing System for Agricultural Lending is another of several facilities available to GTH Farms partners.

GTH FARMS AND NIRSAL

Achieving Sustainability action of GTH, the Organisation is forming a collaboration with Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL). NIRSAL is an approach by the Central Bank of Nigeria to solve problems of funding along value chain, based on Off-takers as collateral.

Research, results and evidence have shown that funds are one of the major problems militating against production of farmers and hence making them vulnerable to poverty. These funds are used to purchase stock and to attain a better livelihood. It was also discovered that inadequate funds management was bringing down the farmers bargaining power on their produce.

GTH Farms has a window of opportunity to enhance farmers fund needs; called FUND TRIPATY INITIATIVE(agreement between GTH, NIRSAL and the farmers). Each standing on its own responsibility.

GTH Farms – Ability to purchase produce at operating market value (an off-taker).

NIRSAL – Availability of fund as a loan at single digit and resting on the promise of the Off-taker to purchase from the farmers.

Farmers – Production of crop as required by the Off-takers (GTH)

This window provides funds for GTH farms registered farmers through;

• Training on fund management
• Risk aversion through Insurance
• Availability of funds during the light season
• Availability of price competitiveness
• Payment of Premiums