Oleg is a longtime farmer from Crimea. He is an experienced farmer and he manages his two hectares of land very well. He has been growing wheat, vegetables and beans. Recently, Oleg has found himself in a difficult situation due to the collapse of market prices for vegetables and wheat in Ukraine. Because Oleg is a small farmer, he finds it difficult to absorb the sharp fluctuation in food prices in Ukraine. However, Oleg is determined, and he came up with a plan to begin phasing out vegetables and wheat and begin planting grapes and strawberries. Grapes and strawberries – and fruits in general – have retained a high value on the Ukrainian market and Oleg believes that he can continue to farm if he switches to growing fruit. However, growing grapes and strawberries requires more delicate care. Oleg needs you to help him finance an irrigation system that can help him to promptly water strawberries and grapes which will result in a better crop that will not be lost due to spoilage.
Oleg is married and has two children: a son, who is 5, and daughter, who is 17. Oleg hopes to send his children to university. Oleg's entire family helps work the two hectares of land the family owns. Their land is relatively small, and that is why every crop counts and Oleg cannot afford for any crop to spoil.
About Agro Capital Management
This Kiva loan will be used to provide borrowers with needed goods or services, as opposed to cash or financial credit.
ACM uses a financing model that is relatively unique. Typically, a microfinance institution will lend money to farmers, who then purchase products they need to have a successful harvest and pay back the loan. In ACM's model, the organization purchases the agricultural goods before reselling them to small farmers on an affordable payment plan. This allows farmers to begin using the goods they buy without having to pay in full upfront.
As part of ACM's offering, clients receive training to improve crop yields. In order to cover its costs, the organization charges a small service fee. The amount of each Kiva loan includes both the cost of agricultural supplies and the service fee. As with all Kiva loans, repayments will be returned to lenders on the schedule outlined.