Community Benefit: increasing the production of oil palm increases the availability of a valued commodity, reducing the costs to individuals while providing a profitable venture to a farmer.
Recipient Requirements: a recipient must prove detailed knowledge about oil palms, and have access to land and labor. They must build a suitable nursery for rearing the seeds.
Capital Costs:
Seed, poly bags and fertilizer - Le 1,460,000
Operating Costs:
The farmer would be responsible to rear the seedlings, hire labor to transplant the trees, build small "fences" around each to protect the young trees. and maintain the trees.
Potential Revenue:
The farmer could see a substantial profit from the production of palm oil, and from the production of excess seedlings to sell to other farmers.
Loan Details:
The farmer is loaned the funds necessary to start the oil palm nursery. In the original crop, the farmer starts with 1,250 seedlings. After one year, the farmer takes 600 of the seedlings and transplants to his prepared farm. The farmer sells the remaining seedlings, with half of the proceeds going back to CIP to start paying off the loan. The remaining funds are used to purchase more seeds, which are again reared in the nursery. When these seedlings are mature, they are sold, again with half of the proceeds going back to CIP and the other half being used to buy more seeds. The farmer continues doing this until the loan is paid off, calculated at 15% interest.
CITRUS TREES
Goal: Citrus has obvious value, but the substantial time it takes from seed to production requires dedication or forethought. CIP aims to assist in small loans to help a farmer to produce more citrus.
Community Benefit: the benefit is obvious, with increased availability of oranges, limes, etc.
Recipient Requirements: the recipient must build and maintain a nursery, and care for the seedlings by protecting them from animal destruction.
A citrus nursery at Makrugba
Capital Costs:
Seeds and poly bags - Le 50,000
Operating Costs:
Just labor by the farmer
Potential Revenue:
Each seedling has substantial value, and can be sold when they reach one year. The farmer can continue the process on an "on-going" basis.
Loan Details:
The farmer pays back the loan with 15% interest after one year.
