Agribusiness is a multimillion-dollar industry in Nigeria but intending farmers are always faced with how to raise capital for farming.
How do small farmers obtain capital for farming? I think this post will address part of this question.
Raising capital has always been an issue when it comes to starting a new venture not just in farming. Understand that capital plays a major role in the establishment of any business venture in this part of the world.
People complain bitterly about their white-collar Jobs yet, lack the requisite knowledge of what to do for themselves (as regards their exit plan). The solution is simple, ‘start a small farming business and grow gradually.
According to research, “most heart attacks happen on Monday morning because of the pressure of work for the week”. Why won’t that happen when all we were taught in school was to graduate with good grades and become employable.
Just like most people – you didn’t inherit any farmland or huge sum from your parents to enable you to start your own business. The big question is, how do I raise capital for the farming business? Should I borrow from the bank?
Well, as a newbie, never borrow from the bank to start any business. Am not insinuating that a bank loan is bad, for a start avoid the temptation.
There are other avenues like Grants but that will be discussed in my next post. Before we proceed, there are two sides to farming business in Nigeria: crop production and livestock farming
- 1. Crop Production: This involves growing crops for use as food and fiber. Crop Production includes fruits, vegetables, grains, plants, nurturing, cotton, etc.
- 2. Livestock Farming: This category involves the rearing of cattle, pigs, sheep, birds, etc.
Now that you are eager to begin, there are processes you must never overlook. The first is to identify your area of interest.
Second, ask yourself why you need to start your own farming. What is your motivating factor?
Lastly, where to start should be in case you’ve never had the opportunity to farm.
Steps on How to Raise Capital to Start Farming Business
How much does it cost to start a small farm? The answer to that question depends on what you actually want to start with.
Let’s assume you have absolutely nothing other than a will to farm and a reasonably normal body. I believe the list below would be of help.
1. Planting Services:
This approach is the first I usually suggest for any individual looking for possible ways to get funds or rather raise capital to start a farming business in Nigeria. You could team up with friends to build planting services where you work with other farmers to grow their crops.
A lot of wealthy people out there need assistance from individuals who can grow their crops from start to finish.
2. Farm Sitting:
You could raise some money providing farm sitting services for the rich and busy farmers. Here you take care of their farm while they travel for either vacation or business.
3: Farm Consulting:
This particular service is for those who know their onions but have no cash to start their own business. Offer your expertise to other farmers and get paid. The likes of Jovana farms offer this kind of service to intending farmers.
4: Patting Zoo Attraction:
Though this kind of service requires little time to start yielding money but is what trying. Who knows the king of cash you could save up doing pat zoo attraction.
5: Hatchery Operation:
Just like consulting for farmers, a hatchery operation is another simple way to raise money to begin your own farm. You could help poultry farmers and fish farmers to hatch their eggs.
People who are into the hatchery business charge over N150,000 for just a day of service. There is no doubt that the hatchery business is a money-spinner.
6: Seed Supply:
Harvesting and selling agricultural seeds from farmlands such as Avocado peers, palm nuts, oranges, etc. are cool ways one could gather some cash for his or her business.
7: Animals Feed Production:
Knowing how to blend varieties of crops and food products to make animal feed is no doubt a sure way to save up some cash since lots of livestock farmers prefer locally produced feed to buy expensive ones in the market. The opportunity in this service is endless. Just make a list of farmers around you, the show them samples of what you have for them.
8: Family and Friends:
Understand that no one would offer to give a helping hand until they see some level of seriousness in you. Make some efforts for yourself before approaching family members or friends for help. If possible prepare a business plan that way people will take you more seriously.
Hope the list above will give you a clue on how to go about sourcing funds as you begin the process of your exit plan.
As we conclude, listen to what Uhuru Kenyatta said, “If you really love your children, get a business, not a job, because when you die your children cannot inherit your job, but they can definitely inherit your business. In fact, if you die on the job, your boss will replace you before your burial. If your family lives in the company house, they will kick them out before they can say anything. So when you close from work, don’t go and watch television, go home and think of a business idea”.
Ask yourself a simple question. Do I want to have a heart attack on a Monday? Do I want to continue working for others all my life? If your answer is no, then it’s time to wake up.
Start a small farming business today or raise some capital and watch it grow to something big. You are allowed to start small but think big.
Research the area you feel is the best for you, then begin to put something on the ground gradually.
If you have ever asked a question such as “How do small farmers obtain capital for farming”, I believe the write-up gave you a clue.
Kindly share this article if you feel is helpful.