Farmers have welcomed a partnership agreement between The Cooper Motor Corporation (CMC) and DFCU Bank that will ease financing of the New Holland tractors. According to CMC Country Manager, Mr. Herman Mbalasi, the partnership will enable farmers to actualize their plans of owning a tractor with just an initial deposit of 20% on the total cost of the tractor with the repayment period being 60 months.
The partnership is not only for individual farmers but also agricultural groups as long as they meet the requisite loan requirements. “The partnership will facilitate farmers to have quick turnaround time on loan applications as well as the comfort of quality equipment on their farms thereby enhancing agricultural mechanization and productivity,” Mbalasi said. Amos Alivule, the agricultural loans officer, DFCU Jinja branch noted that the partnership will enable farmers access finance in a convenient and timely manner.
“Farmers will have a maximum tenure of 60 months to clear the loan and this will be either quarterly or bi-annual depending on the client’s flow cycle,” Alivule said.
Suleiman Dhikusooka, a sugarcane farmer in Mayuge district said the partnership was long overdue. “It is hard for most farmers to pay upfront for agricultural equipment because they are pricey. This partnership will enable use the tractors to make money and also pay for the tractor at the same time,” Dhikusooka said.
Justine Magala, a farmer in Kaliro said many farmers had lost hope of owning tractors since even the tractor suppliers who advance the equipment on credit want the balance paid in less than three years.
The partnership comes at a backdrop of calls by President Yoweri Museveni to heighten agricultural mechanization. Recently, government through the National Agricultural Advisory Services (NAADS) procured more than 100 New Holland tractors for farmer groups and cooperative unions across the country. Agriculture Minister, Vincent Bamulangaki Ssempijja said the tractors were purchased to cement efforts aimed at mechanizing agriculture and improving farm productivity.
New Holland tractors have outstanding power, speed, lift capacity and economy.
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