Isaac is married and has eight children. He is 58 years old and is known as hardworking, trustworthy and an experienced farmer. He is active in his community in groups such as the men's group and the burial committee. Isaac has been a farmer for 46 years. He described his harvest as good last year, but believes he can have an even better one this year by continuing to work with One Acre Fund.
Isaac first enrolled with One Acre Fund in 2012 and is now preparing to be a One Acre Fund farmer during the 2014 long rains season. He joined One Acre Fund in order to get the best seed prices, new farming methods and earn enough income to send his children to school.
He volunteered to be a group leader and Kiva representative because he likes being a leader and is an active community member who wants to help more farmers and spread the story about One Acre Fund farmers. Isaac plans to use the money that he earns from his next harvest to send children to school and repair his home. He notes that working with One Acre Fund has led to many benefits for One Acre Fund farmers. Isaac’s own life improved because he has more profits from his harvest, has more farm training and was able to save money.
Isaac's Group needs a loan to cover the initial costs of purchasing seeds and fertilizer through One Acre Fund. The loan will go toward the necessary materials to plant ¼ acre of maize and ¼ acre of millet or sorghum. Farming materials will be delivered to him and the 65 other individual farmers represented in this group. The individual farmers are not pictured here but will be receiving an average loan of 5,349 shillings each.
One Acre Fund will repay the Kiva loan on behalf of the farmers through the profits from the farmers’ harvests. One Acre Fund pre-purchases the seeds and fertilizer when prices are low and passes the cost savings to the farmers. Throughout the planting and harvesting season, One Acre Fund also provides training and support to the farmers as they make payments back to One Acre Fund. With support from One Acre Fund and your loan, these farmers will have a chance at a successful harvest, increased profits and improved lives.
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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