Picture: realfmgrenada.com
Written by Young Farmers’ Clubs Zimbabwe
The first in a series about Young Farmers and Finance.
We as young farmers face many challenges in setting up and maintaining our agricultural ventures. One crucial obstacle being our access to finance and our lack of financial skills. We are unable to borrow from banks because we lack the sufficient requirements needed for a loan application. In addition, the banking sector in Zimbabwe is crippled by a lack of liquidity.
There is a need to address a number of issues regarding Young Farmers and Finance, for example,
1. The financing gap within the agricultural sector
2. The need for financially literate Young Farmers
3. The high cost of setting up agricultural ventures (are there ways to reduce these costs?)
4. Banks and their reluctance to give loan facilities (the requirements cannot be met by young farmers)
(This is not an exhaustive list of the financial issues facing Young Farmers)
Yes, we may face challenges, but what about those among us who have managed to make a substantial profit from their farming activities. How have they done it?
a) Have they been assisted by family/friends? (It’s quite obvious that someone who inherits a large piece of land is automatically at an advantage over someone who needs to source land and begin from scratch)
b) What about start up capital? How have these young farmers been able to raise it?
c) Once they have the start up capital. What about issues to do with sustainability? How have their agricultural ventures been able to remain profitable when undoubtedly they will face problems like:-
(i) the risk of crop failure (ii) risk of post-production failure (iii) risk of market price failure and (iv) risk of market failure
Let’s talk… Young Farmers!!!!!!!
Young Farmers' Clubs (Zimbabwe) 