How Agriculture Loan Support Farmers in Increasing Their Income - NAFA

1. How Agriculture Loan Support Farmers in Increasing Their Income - NAFA

2. Table of content Ways to Boost Farmer Income About Us How Agriculture Loan Support Farmers in Increasing Their Income Farm Management Software Conclusion

3. About Us - Financing Solutions For Climate Resilient, Future Ready & Profitable Farming. • Netafim Agricultural Financing Agency Pvt. Ltd. (NAFA) was promoted by Netafim Group, Israel to finance the stakeholders in micro-irrigation value chain. Netafim invented and pioneered the adoption of drip irrigation system across the world with the mission to promote a global change in the way water is used in agriculture. • One of the major hurdles in adoption, of micro irrigation by farmers, was their access to finance, hence Netafim decided to provide financial solutions to the stakeholders in micro irrigation value chain. NAFA, the Non-Banking Finance Company (NBFC) of Netafim Group, received the RBI license and commenced operations in March’2013.

4. How Agriculture Loan Support Farmers in Increasing Their Income • In the last blog, we wrote about the ways in which farmers can improve their agricultural practices. Now, we will look at ways in which farmers can use agricultural loans to boost their income. • As per public domain statistics, close to 60% of the Indian population depends on agriculture for their income, however, the sector contributes only less than 18% to India’s GDP. Why is this so? • The answer to this is not straightforward. There are a variety of factors that make farming less remunerative and non-productive for many people. More than 85% of farmers in India are small farmers having less than 2 hectares of land to work on and only contribute 51% to the overall agricultural production. 70% of these small farmers choose to grow high-value crops. They do not want to take any chances for obvious reasons. A survey conducted by NABARD has indicated that farmers earn just 8,931 per month. It is barely enough to meet household expenses and continue farming.

5. Ways to Boost Farmer Income • Integrated farming system model • In an integrated farming system model, farmers can integrate agriculture with poultry, livestock, fishing in the same place to generate additional income that can help them sustain themselves throughout the year. Excreta of the livestock can be used as manure to enrich the soil, while residual water would be useful for irrigation. Such kind of farming ensures optimal utilization of resources while saving on irrigation and other costs. Excess crop yield could also be used for animal food and save on additional expenses. • Hybrid seeds • The Indian seed market is expected to grow at a CAGR rate of 6.8% between 2020-2025. Right now, hybrid seeds are just being used for cotton, sunflower, selected cereals and corn. Lack of literacy and awareness is the reason many farmers don’t opt for hybrid seeds. With hybrid seeds, farmers do not have to worry about crop-related diseases or damages caused due to insects, etc. as such seeds are resistant to them.

6. Ways to Boost Farmer Income • Switch to cash crops • Cash crops are an excellent way to generate additional income for farmers. Along with growing crops for the next season, an extra row could be added (for cash crops) to supplement the farmer’s income. The cash crops depend on the season. • Winter Crops – Wheat, Barley, Mustard, And • Summer Crops – Pumpkin, Watermelon, Bitter Gourd, Peas, Cucumber • Monsoon Crops – Rice, Jowar, Bajra, Legumes, Soybean, Bajra • Irrigation • India has approximately 140 million hectares of agricultural land out of which 48.8% is irrigated, but 51.2% of land still depends on rainfall. As freshwater usage in agriculture accounts for more than 80% of the overall usage of water in India, judicious use of water in agriculture is very much required. The use of Drip-irrigation in agriculture is the need of an hour. Drip irrigation not only saves water but also supports increasing the crop production & quality of crops. Various support being provided by the Government of India in terms of subsidy disbursals for increasing the adoption of micro-irrigation.

7. Ways to Boost Farmer Income • Renewable energy • Farmers in India rely on pumps for irrigating their lands. Very few farmers use solar or turbine energy to operate such pumps used in agricultural fields. Most of them use diesel or other fossil fuels to run them. Agriculture consumes approximately 23% of the installed power in India. Due to the lack of awareness, modernization and hesitancy to bear the initial cost, it deters farmers from taking advantage of solar energy, turbine energy and other forms of renewable energy. • With the sole aim of providing financial assistance and water security to farmers, the Indian government has launched many schemes to promote solar energy. Through such schemes, the government expects to add to the tune of 27,250 MW of combined solar capacities by the end of 2022. • NAFA is committed towards helping Indian farmers. NAFA is unique solution for agri investment loans, channelfinancingand dealer financing.

8. Farm Management Software • Agriculture is not an easy profession in India because of the unpredictability associated with it. Droughts, excessive rainfall, storms, demand-supply mismatch, price variations, supply chain constraints, etc. make the agri-business challenging for farmers. However, with a calculated approach, the detrimental effects of the above factors can be minimized to a certain extent. • A farm management solution allows the farmers to adopt a methodical approach towards food production. It is more sustainable, scalable, and helps farmers in increasing productivity. Farm management software enables efficient decision-making by providing timely information to them – how much to invest and where to invest your resources. Moreover, it guides the farmers on how to plan their activities, track real-time progress and make the right decisions in tricky situations. Risk management is a skill that farmers should have, and farm management software can make them aware of such risks and then suggest timely solutions to counter them. • Less use of pesticides, chemicals will promote sustainable farming, resulting in savings and a cleaner environment. Do not think of investment in farm management solutions are unnecessary. If farmers are thinking of postponing it, they should consider the benefit of rich dividends in the long run because of the farm management solution.

9. Conclusion • Agricultural loans play a prominent role in giving farmers the push towards adopting better agricultural technology solutions to practice farming effectively & efficiently making it profitable. Every agricultural loan is for a specific purpose and choosing them wisely is the key. • Loans can help farmers run their agricultural business smoothly during tough times, boost crop productivity and expand their business operations. Therefore, choose the right kind of loan, that fulfills their business needs are paramount.

10. What We Promote? Sustainable Agriculture Practices by promoting climate resilient technologies by focusing on using water efficiently to reduce negative impact on environment. Access to Financial Service To small holder farmers and Small & Medium rural agri enterprises Improving Farmer’s Income Level By helping him to adopt cash-crops, increasing crop-productivity and helping him to grow more with less

11. Thank you Netafim Agricultural Financing Agency Pvt. Ltd. (NAFA) Registered Office: 1602 & 1603, The Affaires, 16th Floor, Plot no. 9, Sector 17, Palm Beach Road, Sanpada, Navi Mumbai – 400 705, Maharashtra. Phone Number : +91-22-6170 7600 Toll-Free : 1800 2677762 Whatsapp : +91-8928493972 Email: info@nafa.co.in customercare@nafa.co.in Web: https://nafa.co.in