Nairobi – 24th February 2015:
John Deere Financial working in Collaboration with Chase Bank and the local John Deere dealers has signed an agreement to deliver an innovative finance solution focusing on emerging commercial farmers and emerging mechanization contractors to offer improved access to credit and address the cost of credit. The finance solution that facilitates access to mechanization adoption is expected to aid farmers in achieving improved cultivation practices, higher yields and ultimately increased household incomes.
John Deere Financial Sub Saharan Africa, Managing Director, Jacques Taylor said, “John Deere understands the importance of food security and the importance of having a sustainable agricultural sector. Given the importance of the small holder farmer in Africa, John Deere aims to assist in creating a system whereby small holder farmers can improve their efficiencies at all levels: efficiency in input procurement, production efficiency through access to new technology (seeds, fertilizer and mechanization) as well as efficiencies in the marketing of agricultural commodities.” Adding that John Deere understands that the small holder farmer might not be able to afford or justify the expense of the required capital investment in technology.
Through this agreement John Deere will support emerging commercial farmers and emerging contractors, by offering operator training, business training (including cash flow management) and agronomic skills to equipment purchasers. With innovative finance solutions, John Deere aims to support the existing emerging commercial and -contractor segment and to develop new contractors to serve the small holder farmer, allowing the small holder farmer to have access to mechanization technology via a contractor model.
Speaking at the signing of the agreement in Nairobi, Chase Bank General Manager for Institutional Banking Debra Lindsay said the bank recognizes the important role the agricultural sector plays in the Kenyan economy and has taken deliberate efforts to enter into agreements and design products and services targeted at developing the sector.
She said, “access to credit has, in the past, been a major stumbling block in allowing smallholder farmers and small scale contractors to employ on-farm technology. The contractor model which John Deere has developed in cooperation with the bank, offers an innovative solution to this problem. As a bank, we value strategic agreements that help us satisfy the ever changing needs of our customers. Our strategy includes working closely with organizations in the agricultural sector who offer technical support and access to market such as the one we have signed with John Deere.”
The Head of Agribusiness Banking, Samuel Ndonga, highlighted that the contractor model will offer smallholder farmers and small scale contractors an innovative solution to access affordable credit and thus move agricultural production across Kenya to the next level.
The John Deere dealers (TATA & Mascor) believe that smallholder farmers and small scale contractors, with the use of appropriate mechanization and training can contribute significantly to world food security, while benefiting from significant yield increases and greater agricultural productivity across the entire value chain in Kenya.
Mascor, as one of the registered John Deere dealers in Kenya, believes that mechanized solutions are the only way to meet the world demand for food. To effectively utilize the potential of mechanization, farmers need access to reliable, efficient back up service and training. Through Chase Bank and John Deere’s Collaboration we can ensure that emerging commercial farmers and part time contractors do not only have access to new technology, but also the back up and support from Mascor to make it work sustainably.
The agreement John Deere follows a similar one the bank signed a month ago with Green Farming, a reputable Dutch company operating in the field of agro-consultancy, as well as providing operational, strategic planning and turn-key consultancy across all sectors in Agriculture and Horticulture. The agreement with Green Farming allows Chase Bank customers to gain easy access to greenhouse technologies, affordable financial and marketing options, input supplies packages and post-harvest logistics, and capacity building.
Read the Press Release here.