How Investment Start-Up Agri Seed Capital Aims To Bridge The Gap Between Investors And Emerging Farmers
How Investment Start-Up Agri Seed Capital Aims To Bridge The Gap Between Investors And Emerging Farmers. Agri Seed Capital bridges the gap between challenges and opportunities by linking investors to grain emerging farmers. This is achieved through an innovative funding solution where working capital is raised to finance select farmers who have management capacity in terms of land, skills and experience. The working capital in the form of a production loan is mainly for cultivating underutilised land, maximising production capacity and procuring high quality inputs.
The company sources and funds high potential farming projects underpinned by innovative funding solutions to bridge the gap between challenges and opportunities by linking investors to farmers. It provides micro and production loan solutions to smallholder farmers. It walks the production journey financing farm related activities from input purchases to machinery repair costs. The company also understands that farming income in cyclical, that’s why it provides unique micro loans payable as a single instalment after three months to assist the farming community with day-to-day needs and unexpected costs.
The integration of finance and risk services to both investors and farmers places Agri Seed Capital as a value creator linking the retail investor market and the agricultural sector for sustainable farm production yield and sustainable investor returns. Pervasive climate risk is perhaps the most pressing issue of modern agriculture. Farmers are inherently exposed to weather elements which most often affects those without the relevant tool, coping strategies and importantly financing. Farmers are highly skilled and experienced practitioners most of them have access to land and labour resources but lack access to finance mainly due to price and production risk, lack of collateral, informal records management and failure to meet credit lending criteria set by banks and other lenders.
Agri Seed Capital seeks to provide financing that is centred around on-going risk management support, improving adaptive capacity to climate change and building long-term resilience. It also aims to assist farms to get its decision making supported by big data and satellite driven data analysis.
