Josphine is 57 years old and has been a farmer for 15 years. She works hard to provide for her three children. The community and other farmers know her as a friendly, hardworking, reliable and experienced farmer. Apart from farming, she is also involved in many community activities such as a women's group and a savings group. She described her harvest last year as good, but hopes she can have an even better one with the support of the One Acre Fund and the other farmers in her group.
Josphine’s first joined the group in 2013 and has continued working with it in order to get the best seed prices, and learn new farming methods to earn enough to feed family and send her children to school. As an active member of her community, she also chose to be a group leader and Kiva representative because she wants to help more farmers and spread the story of the One Acre Fund. Josphine plans to use future profits from her harvest to send children to school. Her life has improved because she has more profits, more farming opportunities and support and was able to feed her family.
Josphine and her group need a loan to cover the initial costs of buying seeds and fertilizer through the One Acre Fund. The fund will repay the Kiva loan on behalf of the farmers through the profits from their harvests. The fund pre-purchases seeds and fertilizer when prices are low and passes the savings to the farmers. Throughout the planting and harvesting season, the fund also provides training and support to farmers as they make payments. With this support, farmers will have a chance at a successful harvest, increased profits and improved lives.
The field officer is also included in the photo and is standing on the left.
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