Safania is 74 years old and has been a farmer for 50 of those years. He works hard to provide for his 10 children. His neighbors know him as friendly, hardworking, and trustworthy. Apart from farming, he is also involved in his community in a men's group, a savings group, and a prayer group. He described his harvest last year as good, but hopes he can have an even better one with the support of the One Acre Fund and the other farmers in the group. He joined the fund in 2010 to get the best seed prices, learn new farming methods, and acquire fertilizer, hybrid seeds, and earn enough to feed his family. Because he is an active community member, he wants to help more farmers and spread the story of One Acre Fund farmers.
Safania has gotten more involved with the One Acre Fund as a group leader and Kiva representative. His work has improved his life because he has more profits from his harvest, more training, and more support. He also was able to save money and feed his family. In the future, he hopes that his profits from 2014 can be used to send his children to school, buy a cow, and invest in a business.
The One Acre Fund focuses on working with small farmers across Kenya. The organization pre-purchases seeds and fertilizer when prices are low and passes the cost savings onto the farmers. Safania and the Tumaini Group will use the Kiva loan to cover this initial cost of buying the seeds and fertilizer package from our fund, which continues providing training and support throughout the planting and harvesting season to ensure a good harvest and repayment. With support from the fund and your loan, these farmers will have a chance at a successful harvest, increased profits, and improved lives. Please note that there are four additional group leaders in this photo who will be working with the One Acre Fund but will not be a part of this Kiva loan. 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