Farming is an important economic activity. A lot of people have moved to towns and found white collar jobs. They are not in possession of land for producing their own food. Land owners are able to undertake commercial farming. This is usually expensive and may require one to seek for a financier. Farmers need to learn how to get farm loans which will enable them to utilise their farms and make profits.
There are different farming projects that can be done. The size of the project will determine the money needed to undertake it. Finding a market for the produce to be grown is important. The prices should also ensure profitability.
One can decide to venture in keeping farm animals for meat or milk. Keeping animals will not be an easy task and will need patience and close monitoring. The animals can fall sick and will require a lot of inputs in form of food and medicine. It may take some time before returns are realised. In such a case it may be better to seek for a long term loan. This will allow the farmer time to breed his animals before he can realise profits and start repaying the loan.
Some farmers can decide to venture into crop farming. Crops are of different types. There are those which mature within a few months. Others will take years such as trees. Depending on the crops to be grown and the farm inputs needed to take care of them, one should seek a financial provider that will allow him enough time to repay the money lent to him. This will be after making sales from his harvests.
Before taking a loan from a financier, one should research on what is available in the market. Some financial institutions have hired people who will go to the farmers to sell them the loan products from their farms. The farmer should not be too quick to accept this offers. They may be more expensive than what other financiers are offering. It is good to shop around the various loaners and find out what their interest rates are as well as any other charges. By so doing, one may end up saving a lot of money.
The period over which a loan is to be repaid is important too. When the repayment is done over a very long period of time, the total amount of money repaid will be a lot. If repayment is done within a shorter period, less money will be paid. However, the period should be one that the farmer is comfortable with.
There are government bodies which finance farmers. These bodies target farmers who cannot access finances in the private financial institutions. Their interest rates may be cheaper. Due to the good terms of the loans, they have conditions which ensure that the poor farmers are able to benefit from the finances without being outdone by richer farmers. Farmers should consider this too.
The above points help farmers to learn about the types of loans they need. They also give tips on how to reduce the cost of a loan. They are helpful for first time farmers.
There are different farming projects that can be done. The size of the project will determine the money needed to undertake it. Finding a market for the produce to be grown is important. The prices should also ensure profitability.
One can decide to venture in keeping farm animals for meat or milk. Keeping animals will not be an easy task and will need patience and close monitoring. The animals can fall sick and will require a lot of inputs in form of food and medicine. It may take some time before returns are realised. In such a case it may be better to seek for a long term loan. This will allow the farmer time to breed his animals before he can realise profits and start repaying the loan.
Some farmers can decide to venture into crop farming. Crops are of different types. There are those which mature within a few months. Others will take years such as trees. Depending on the crops to be grown and the farm inputs needed to take care of them, one should seek a financial provider that will allow him enough time to repay the money lent to him. This will be after making sales from his harvests.
Before taking a loan from a financier, one should research on what is available in the market. Some financial institutions have hired people who will go to the farmers to sell them the loan products from their farms. The farmer should not be too quick to accept this offers. They may be more expensive than what other financiers are offering. It is good to shop around the various loaners and find out what their interest rates are as well as any other charges. By so doing, one may end up saving a lot of money.
The period over which a loan is to be repaid is important too. When the repayment is done over a very long period of time, the total amount of money repaid will be a lot. If repayment is done within a shorter period, less money will be paid. However, the period should be one that the farmer is comfortable with.
There are government bodies which finance farmers. These bodies target farmers who cannot access finances in the private financial institutions. Their interest rates may be cheaper. Due to the good terms of the loans, they have conditions which ensure that the poor farmers are able to benefit from the finances without being outdone by richer farmers. Farmers should consider this too.
The above points help farmers to learn about the types of loans they need. They also give tips on how to reduce the cost of a loan. They are helpful for first time farmers.
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