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- Federal Government Agriculture Grant (Definition):
- List of Federal Government Agriculture Grant:
- How to apply for Federal Government Agriculture Grant:
Because humans eat virtually every day, hence food ingestion is one of our basic needs for survival. And having it at the reach of everyone is the concern of agriculturists and the government as well. Consequently, the Federal government, being aware of the fact that agriculture is very essential among other sectors of our economy, has consented to impart gratuitously to agriculture by venturing into the Federal Government Agriculture Grants; giving credits both to farmers and agribusinesses. Let’s look at the various Federal Government Agriculture Grants and how to apply for one.
Federal Government Agriculture Grant (Definition):
The Federal Government Agriculture Grants are schemes of valuables and money (loans) given to basically practicing agriculturists and agricultural societies. It is one of the various government grants available to businesses; both private and cooperate organizations, in Nigeria.
To be a benefactor of these grants, there are processes one needs to pass through. Although, the agricultural grant bodies are considerate, yet it’s not quite easy to secure a grant from them.
List of Federal Government Agriculture Grant:
The Federal Government and Ministry of Finance have predefined legitimate bodies whereby they provide agricultural grants to the public. Here are they:
- Central Bank of Nigeria (CBN) agricultural grants.
- Bank of Agriculture.
- Commercial Bank Loans
- Agricultural Co-operative Societies.
1. Central Bank of Nigeria (CBN) Agricultural Grant:
The Central Bank of Nigeria gives various grants to a variety of businesses in which agriculture is among them. Furthermore, the CBN ensures a favorable grant with infinitesimal interest rates to farmers in Nigeria.
Nevertheless, there are schemes of the Federal Government agriculture grant under the Central Bank of Nigeria. They are:
- The Commercial Agricultural Credit Scheme: The body is popularly known as ‘CACS’ for short. It covers those participating majorly on export crops, food crops, animal husbandry, crop processing, and saving, alongside the agriculturists that deal on farm equipment and chemicals.
- Other schemes on this project include the Agricultural Credit Guarantee Scheme Fund (ACGSF) and the agricultural credit support scheme (ACSS).
2. Bank of Agriculture (BOA):
The Ministry of Finance and Central Bank of Nigeria (CBN) control this institute, while the Federal Government presides over them. Also, the Bank of Agriculture gives credit (loans) to the masses with a scrupulous agricultural agenda. To apply for a loan from the Bank of Agriculture, you must meet the following requirements:
- A prove of collateral
- A minimum of six months in operating a bank account with the bank.
- Deposit 20% of the required loan amount into the account.
- Present your entire business goals (plan)
Furthermore, the Bank of Agriculture has categories of loan assured for the public, and they are:
- Small and Medium-sized Enterprise (SME) application loan.
- The Micro Credit Grant
- Ascend and Get More (aka Grow and Earn More)
3. Commercial Bank Loans:
The Federal Government, alongside the Bank of Agriculture and industrial banks, have in one way or the other worked hand in hand with various commercial banks to aid loan acquisition by farmers. To this effect, farmers can as well apply for loans in commercial banks like UBA, Zenith Bank, GT Bank, FCMB, and First Bank for agricultural loans. The steps involved are:
- Visit any commercial bank around you.
- Have an active account with the bank. Create one with them if you don’t have any.
- Write to them about your interest to get a loan.
- Ensure you have at least 10% of the money you are requesting.
- Provide evidence of collateral and then submit the business plan.
4. Agricultural Co-operative Societies:
The Federal Government distributes various grants to co-operative societies. In the same way, agricultural societies have the inalienable right to do so as well. The societies share these grants accordingly to their members.
Some agricultural cooperative societies are the Cocoa Association of Nigeria, Agricultural Graduates Association of Nigeria (AGAN), Farm Management Association of Nigeria (FAMAN), and the Commercial Agriculture Development Association (CADA).
To apply for a cooperative society’s loan, the group of individuals is meant to:
- Form a cooperative society and register it.
- Submit a loan application to the CBN, BOA, or any commercial bank.
- A member of the cooperative society must sign the letter (application) bearing the name of the society, the logo, goals, and then submit it.
Many farmers that have applied for the Federal Government agriculture grants have experienced the impact and gained some advantages.
Read more about Top agricultural grants for businesses.
How to apply for Federal Government Agriculture Grant:
In other to enjoy the Federal Government agriculture grant, here are easy steps to the application.
- Search for available Federal Government agriculture grants online, and their offices around you.
- Join agricultural societies or go to any of the banks listed above if you meet the requirements.
- Declare your interest by specifying the amount you need, why you need it, how to use it, and the benefits that lie ahead. You can engage the grant proposal scheme for your application.
- Check the outcome of your application.
- Be very active and transparent in relative matters and news about the Federal government agriculture grants.