Is It Advisable To Borrow Loan As A Nigerian Farmer To Invest In Agriculture?

Don't try it!! Don't even think about it. Start with what you have and setup a farm according to the quality you can afford. Don't ever borrow to start agriculture. That doesn't mean there's no money in it but start with only what you have.

Don't borrow or get loan to start. Not advisable but if at worse you still considering to go for loan it must be from source that will give you some time before you start repaying back and must not be big amount of money. You should consider cash Crops, the one that will produce very well in your locality.

Agriculture is a business and loan is for business. But put it in the crops you know best and make money. All professions have inherent risk. Borrowing to start farming is widening the risk.

The rain may run short, and yeilds dwindle. You can't pay off your loan. Start with what you have, and try to establish yourself before taking a loan for expansion.

* What if part of the loan is used to reduce the risk, like installing irrigation facilities?

Yes when you calculate your risk take responsible one.

All I will advise farmers is to go for loan with moratorium and not too high interest, they could also advertise their farms for people to invest capital with agreed return on investment. Limiting yourself to saving, funds from family and friends are some of the reasons many farmers are still struggling.

I always advise people not to start any business with loan especially if it's your first time in that business. You can start your farm with the little capital you have and grow gradually. Starting a business with loan doesn't always turn out well unless you have good management skills.

It is risky!!

Don't ever borrow to begin what you have not tried before. Start with your fund no matter how small. Learn and acquire skill from your failures and success, then borrow. You don't know anything about farming and the types of crops that you would plant, and you want to borrow money to farming? Start with what you have and gain experience in farming first. Experience they say the best teacher.

I will never advice anyone to borrow money and start it from the beginning... But you can take loan to fund it along if the crop are healthy and if there is prospect.

However, if you must borrow loan for farming, contact nearest bank if agriculture office, that can borrow long-term loans. Also, consider planting any plant that is marketable in your environment. Maize. Of course YES, but you need to be trained very well  especially vegetables farming like tomatoes that is very lucrative .Advise you should for rice farming it will help you grow fast. I will also suggest Cassava and Maize but it depend on your location oooo.

I advise you to be far away from soils farming if na loan so you can be able to back quickly. Just don't go borrow money from Palmpay. If you don't want embarrassment from palmpay workers, lol.