Chase Bank,John Deere Financial and the local John Deere dealers have signed an agreement to deliver an innovative finance solution focusing on emerging commercial farmers and emerging mechanization contractors to offer improved access to credit and address the cost of credit.
The finance solution that facilitates access to mechanization adoption is expected to aid farmers in achieving improved cultivation practices, higher yields and ultimately increased household incomes.
John Deere Financial Sub Saharan Africa, Managing Director Jacques Taylor said John Deere understands the importance of food security and the importance of having a sustainable agricultural sector.
“Given the importance of the small holder farmer in Africa, John Deere aims to assist in creating a system whereby small holder farmers can improve their efficiencies at all levels: efficiency in input procurement, production efficiency through access to new technology (seeds, fertilizer and mechanization) as well as efficiencies in the marketing of agricultural commodities,” said Taylor.
He affirmed John Deere understands that the small holder farmer might not be able to afford or justify the expense of the required capital investment in technology.
Through this agreement John Deere will support emerging commercial farmers and emerging contractors, by offering operator training, business training (including cash flow management) and agronomic skills to equipment purchasers.
“With innovative finance solutions, John Deere aims to support the existing emerging commercial and -contractor segment and to develop new contractors to serve the small holder farmer, allowing the small holder farmer to have access to mechanization technology via a contractor model,” Taylor added.
Chase Bank General Manager for Institutional Banking Debra Lindsay said the bank recognizes the important role the agricultural sector plays in the Kenyan economy and has taken deliberate efforts to enter into agreements and design products and services targeted at developing the sector.
“Access to credit has, in the past, been a major stumbling block in allowing smallholder farmers and small scale contractors to employ on-farm technology. The contractor model which John Deere has developed in cooperation with the bank, offers an innovative solution to this problem,” Lindsay said.
“As a bank, we value strategic agreements that help us satisfy the ever changing needs of our customers. Our strategy include working closely with organizations in the agricultural sector who offer technical support and access to market such as the one we have signed with John Deere,” said Lindsay.
The head of Agribusiness Banking, Samuel Ndonga, highlighted that the contractor model will offer smallholder farmers and small scale contractors an innovative solution to access affordable credit and thus move agricultural production across Kenya to the next level.
He also stated that, “access to credit has, in the past, been a major stumbling block in allowing smallholder farmers and small scale contractors to employ on-farm technology. The contractor model, in cooperation with John Deere, offers an innovative solution to this problem.”
The John Deere dealers (TATA & Mascor) believe that smallholder farmers and small scale contractors, with the use of appropriate mechanization and training can contribute significantly to world food security.
They believe that smallholder farmers and small scale contractors, with the use of appropriate mechanization and training will benefit from significant yield increases and greater agricultural productivity across the entire value chain in Kenya.
