Niche Lending for Agri

Ad Majorem.....Wealth Builders

When I was discussing with our manager the proposed mechanics/process of bridge financing, he talked to me about agri bridge financing.  Farmers usually have no inputs for the planting season and they would like to bridge that by borrowing.  Here  is the deal:  for every x amount they borrow, they will repay with c amount of produce.  And this would amount to 30% levy/interest on the amount borrowed.  At 3x harvest every year, this would be a 100% ROI almost.  All you need is small light truck to collect your repayment (principal plus interest) and a warehouse.  There you could gain price increase on your stock.

With higher price support for farmers, and unstable supply, this is a lucrative business.

The fertilizer scam under the past administration laid to waste our good agri production.

Next time a cabinet official (Usec Ordonez asked me 3 years ago if I know how to run a bank for farmers) I would know how to answer