The group leaders represent a total of 87 individual One Acre Fund farmers who are not pictured here. Alex has been selected to act as the Kiva group representative and is standing on the right with his hand raised. He and the other farmers represented in this group are each receiving ¼ acre of maize and ¼ acre of sorghum or millet. Each farmer is receiving an average input loan of 5,349 shillings for maize, millet, and sorghum cultivation.
Alex is married and has one child. He is 28 years old and is known as friendly, hard-working, trustworthy, and an experienced farmer. He is active in his community in groups such as the men's group and prayer group.
Alex has been a farmer for six years. He described his harvest as excellent last year, but believes he can have an even better one this year by continuing to work with One Acre Fund.
Alex first enrolled with One Acre Fund in 2011 and is now preparing to be a One Acre Fund farmer during the 2014 Long Rains season. Alex joined One Acre Fund in order to get the best seed prices, get new farming methods, fertilizers, and hybrid seeds, and earn enough to feed his family. He also volunteered to be a group leader and Kiva representative because he is an active community member who wants to help more farmers and spread the story about One Acre Fund farmers.
Alex plans to use the money that he earns from his next harvest to send his children to school, repair his home, save for the future, and buy a cow. He notes that working with One Acre Fund has led to many benefits for One Acre Fund farmers. Alex’s own life was improved because he has more profits from harvest, has more farm training, was able to save money, and feed his family.
Alex and the Korokoro M SHG Group need a loan to cover the initial costs of purchasing the seeds and fertilizer through One Acre Fund. 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.
The field officer is also included in the photo.
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.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.
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