Sergei owns and rents his land of about 6 hectares. On this land he grows carrots, tomatoes and potatoes. Sergei's wife helps him to farm. They have a 14 year-old daughter who goes to school. Their 22 year old daughter has finished university with a major in English. Sergei and his wife need you to help them finance irrigation equipment because in the Northern Crimea the situation with water infrastructure is very troubling. Farmers can no longer develop agriculture without an investment into new equipment which will bring fresh water supply and electricity.
Sergei's wife owns a 4 hectare land in a nearby region. However, this land lies idle because the family struggles to cultivate current lands to their capacity. It is their great dream to develop existing 6 hectares and have enough resources to begin working on a piece of land in a neighbouring region.
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.