Available equipment often not The farm support services provided by suitable or adaptable for farm TOHFAN has helped reduce production operations required by the costs for smallholder farmers. smallholders FABRICATOR BOI exists limited capacity in Nigeria BOI provides financial support services to for local fabrication, but costs often smallholder processors at an interest rate not competitive vis-à-vis imported of 4-5% for a 3 year counterparts. Credit facilities for fabricators of Capacity of equipment processing equipment for smallholder manufacturers for mass production is users could go up to a maximum of N10, low. 000,000 with payment commencing in the Commercial equipment manufacture second year of loan tenor. is hampered by low demand. Groups of farmers or service providers can obtain credit facilities to procure power tillers or rice threshers Following the discussions the Managing Director of the Bank of Agriculture (BOA) made a brief presentation. The highlight of his presentation focused on the effort of BOA to ensure competitive and sustainable rice production in Nigeria. He indicated that the BOA in partnership with the Central Bank of Nigeria (CBN) is supporting 70,000 farmers from Kebbi state to produce 30,000 metric tonnes of rice in the current year. Business models for mechanization service providers (pre and post- harvest). Dr. Kristina Spantig, CARI Economist presented scenarios of suitable business models for pre and post-harvest mechanization service providers. The presentation was a summary of the results of a which focused on business model calculations for farm machineries. The study considered the possible costs and profitability to service providers and users of such services, especially the smallholder farmers. It further presented a sensitivity analysis and a comparison of business model calculations between the combination of power tiller and a plow (100% self-financed) and a similar model (financed 100% via loan at 25% interest rate)
Available equipment often not suitable or adaptable for farm operations required by the smallholders The farm support services provided by TOHFAN has helped reduce production costs for smallholder farmers. FABRICATOR exists limited capacity in Nigeria for local fabrication, but costs often not competitive vis-à-vis imported counterparts. Capacity of equipment manufacturers for mass production is low. Commercial equipment manufacture is hampered by low demand. BOI BOI provides financial support services to smallholder processors at an interest rate of 4-5% for a 3 year Credit facilities for fabricators of processing equipment for smallholder users could go up to a maximum of N10, 000,000 with payment commencing in the second year of loan tenor. Groups of farmers or service providers can obtain credit facilities to procure power tillers or rice threshers Following the discussions the Managing Director of the Bank of Agriculture (BOA) made a brief presentation. The highlight of his presentation focused on the effort of BOA to ensure competitive and sustainable rice production in Nigeria. He indicated that the BOA in partnership with the Central Bank of Nigeria (CBN) is supporting 70,000 farmers from Kebbi state to produce 30,000 metric tonnes of rice in the current year. Business models for mechanization service providers (pre and post- harvest). Dr. Kristina Spantig, CARI Economist presented scenarios of suitable business models for pre and post-harvest mechanization service providers. The presentation was a summary of the results of a which focused on business model calculations for farm machineries. The study considered the possible costs and profitability to service providers and users of such services, especially the smallholder farmers. It further presented a sensitivity analysis and a comparison of business model calculations between the combination of power tiller and a plow (100% self-financed) and a similar model (financed 100% via loan at 25% interest rate)
Report-on-Mechnization-Workshop.docx