Part of our responsibilities to the farmer is to secure buyers for the produce after harvest. We are actively involved in the selling off process to ensure that farmers get both the best price and quick offload of harvested produce.
It is important to note that farmer gets little or no access to cash and therefore limiting the chances of default. Before a farmer is signed up, he/she must provide documentation such as BVN, ID, farmland report from the district head, community head, get our existing farmers to endorse his/her application and physical verification by our field team (or any other valid documentation as relates to region of farmer).
After which we then issue a reference for an account to be opened in our bank for two reasons.
1. To deposit approximately +- 10% of total farm capital for direct labour, weeding, and cultivation.
2. For up-take who finally buys the farm produce to pay the farmer.
Also, note that this account is a sub account just like salary account that is checked and can be frozen by us with a simple request to the bank.
Our Terms & Condition requires that for any reason a farmer defaults or seems fraudulent, we can takeover the farm or ask our up–takers to pay us directly.
However, in the case of serious defaults, our insurance providers cover such and that is why farmers take up personal accident insurance and overall farm insurance as deemed fit.