Pamela described her harvest last year as good, but hopes she can have and even better one as a One Acre Fund farmer. She hopes that her profits from the 2013 Long Rains season can be used to buy livestock as an investment for the future. Then she can send her children to school and expand her cash, and horticultural farm.
During the 2013 Long Rains season, each group member will receive ½ an acre of agricultural inputs on credit. Pamela's group will receive 9.5 acres worth of inputs on credit. Irine, a former member of Bidii Group, dropped from the program after the photo was taken.
More information about this loan
To give borrowers more flexibility, One Acre Fund permits them to switch groups, drop out of the program and change their loan amounts before receiving their inputs. To accommodate this, Kiva allows One Acre Fund to post loans for groups that may change in size and membership. Only the group leader is featured in the photo, representing the loans for each of his or her individual group members.
If a lender makes a loan to group containing a borrower that drops out, the lender will receive the full loan amount for that borrower back at the end of the harvest season. If the lender makes a loan to a group containing a borrower that decides to take a smaller loan amount after the loan is funded, the lender will receive the repayments from the smaller loan amount plus the full difference between the two loan amounts at the end of the harvest season.
This Kiva loan will be used to provide borrowers with needed goods or services, as opposed to cash or financial credit.
About One Acre FundWith this loan, One Acre Fund will purchase fertilizer, seeds, and other important farming inputs to distribute to this farmer group during Kenya's next planting season in February. This distribution of farming inputs is part of One Acre Fund's integrated agriculture package, which includes training, reliable input supply (such as fertilizer and seeds), credit and insurance. Clients enroll between July and October for the following planting season, which begins in February. By purchasing inputs during these months, One Acre Fund is able to take advantage of the historically low farm input prices during this time of year in Kenya.
Members of One Acre Fund form groups in which each borrower guarantees the loans of all other borrowers in the group. One Acre Fund differs from a traditional microfinance institution, however, by allowing groups to split before the delivery of inputs at planting time. If a group were to split, each of the two new groups would have fewer members that could support a delinquency or default from a member. This may represent a different risk than that for a traditional MFI’s group loan.
Important Information About the Risk of One Acre Fund
One Acre Fund is not assigned a risk rating on Kiva. This is due to the fact that One Acre Fund’s business model differs enough from traditional microfinance models that Kiva’s current risk rating system is not applicable in accurately reflecting the risk assessment. Key risks and further information in making loans to One Acre Fund borrowers can be found on the organization’s partner page.
This is a Group Loan
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Success!! The loan was 100% repaid