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A loan helped to purchase additional farmland.
Furthermore, through training programs, Muhammad now practices farming in a more sustainable manner. For example, the agronomy education Muhammad receives focuses on micro-dosing fertilizers to lessen environmental impact and increase yields. Muhammad expects to reap 40 bags/hectare of maize from this year's harvest, more than double the national Nigerian average of 18 bags/hectare.
Nonetheless, Muhammad needs a Harvest Advance loan to purchase additional farmland to enable him capture greater margins on his maize instead of selling the grain at harvest, when prices are low due to the high supply of maize. This Harvest Advance loan will provide Muhammad with cash equivalent to his value of maize at harvest. Babban Gona will then help Muhammad to store his maize and sell it at a higher price over the next six to nine months, guaranteeing higher returns.
This is crucial for Muhammad as he plans on using the increased income to purchase additional farmland for a bigger harvest next season.