Accessing funds for your farm or agribusiness shouldn’t feel impossible — yet many farmers and agripreneurs, whether large or small scale, are held back by common myths and misunderstandings.
You might have heard things like “Loans are only for big farms” or “It’s too complicated for small operators.” These beliefs prevent many from pursuing the financial support they need to grow.
Let’s set the record straight for farmers and agripreneurs of all sizes.
Myth 1: Only Large Commercial Farms Can Get Loans
This is not true.
Many financial institutions and government programs actively support both smallholder farmers and large agribusinesses. There are microloans and group financing options for small-scale farmers, as well as larger credit facilities for bigger commercial farms.
Whether you manage a few acres or run a large agro-processing business, there are loan and grant programs tailored to your scale and needs.
Myth 2: You Need a High Level of Education to Qualify
Funding bodies care more about your business plan, how you intend to use the funds, and your ability to repay—not just academic qualifications.
Both small and large agripreneurs benefit from support services that help you prepare your applications properly, regardless of your educational background.
Myth 3: You Can’t Get a Loan Without Collateral
While some loans require collateral, many programs offer flexible options, especially for youth, women, and cooperatives.
Small-scale farmers often access loans through group guarantees or cooperatives, while larger operators might use assets like equipment or land.
Myth 4: The Application Process is Too Complicated
Application processes may seem complex, but many institutions provide support to make it easier, including local agents, online platforms, and guidance in local languages.
Both small and large-scale farmers can get help navigating the application steps.
Myth 5: Grants and Loans Are Mostly Scams
There are scams to watch out for, but many legitimate, government-backed programs and trusted financial institutions offer real funding opportunities.
Always verify sources and apply through official channels.
Where Farmers and Agripreneurs Can Find Funding
Here are trusted sources that serve small and large-scale farmers alike:
NIRSAL Microfinance Bank
Offers various loan programs for farmers and agribusinesses of all sizes, including AGSMEIS and Anchor Borrowers.
Website: https://nirsalmfb.caderp.com
Bank of Agriculture (BOA)
Provides loans and financial products to individuals, cooperatives, and enterprises — small or large.
Website: https://www.boanig.com
CBN Agricultural Intervention Programs
Includes Commercial Agriculture Credit Scheme (CACS), Real Sector Support Fund, and others for different scales of agriculture.
Website: https://www.cbn.gov.ng
SMEDAN
Supports small and medium-sized agri-enterprises with funding, training, and advisory services.
Website: https://www.smedan.gov.ng
Tony Elumelu Foundation (TEF)
Provides seed capital and entrepreneurship training for agripreneurs across Africa, regardless of size.
Website: https://www.tefconnect.com
Final Thoughts
Whether you run a small farm or a large agribusiness, funding opportunities are available to help you grow.
The key is to overcome the myths and take the necessary steps to apply. With the right information and support, you can access the funds you need to achieve your business goals.
Don’t let false beliefs hold you back.
Which of these myths have you encountered? Share your thoughts in the comments
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