Farmer1st, an agtech startup platform aims to provide a simple tailored made solution to the banking, market access, and micro-lending challenges smallholder farmers face in Nigeria.
Background
The Farmer1st platform first started as TradexPress in 2017, as an agro trading and aggregation service providing farmers direct access to off-takers (agro-processors and bulk buyers). The startup restructured and registered as Farmer First Technologies Agro Limited in 2018. It extended its services to 8 states in Nigeria, Bauchi, Lagos, Taraba, Rivers, Kaduna, Abuja, Enugu and Anambra. The startup created its online aggregation platform and started to supply agro-processing companies like Kaptain Foods.
In 2019, it discovered that its off-takers have issues with their logistics and transportation after aggregating their orders. Hence, the agtech startup decides to expand its services by including haulage of agro commodities and signed a bilateral agreement with the All Farmers Association of Nigeria and Fadama Cooperative Society.
In 2020, Farmer1st expanded its operation to more than 27,000 registered farmers have discovered that access to capital and basic banking and financial services was a major challenge for rural farmers.
Hence, the startup developed two products:
Agro Money
A short-term single-digit loan for farmers and women agro traders.
Farmer Pay
Mobile banking (USSD) and agent banking platform in partnership with etranzact and Zenith Bank Plc, enabling farmers to make payments, receive money, and pay basic bills.
Farmer1st Solution
Market Access
The agtech startup provides farmers with uptakes which helps to reduce poor storage, exposure to exploitative tendencies of most middlemen as well as farm produces that get spoilt as a result of lack of off-takers. Farmer1st is currently listed on Afex Commodities Exchange and Lagos Commodities Exchange (LCFE) to trade agricultural products.
Micro Credit
Farmer1st found out many farmers in Nigeria cannot access microloan. The loans provided for the agricultural industry is 3.6% of the total loan issued portfolio by banks and other financial institution.
The majority of the small-scale farmers are always in need of loans to buy farm inputs, therefore the micro-credit scheme, Agro Money Platform allows farmers specifically women in the agricultural space to access short-term loans at a single-digit interest rate.
Financial Inclusion
More than 3 million small-scale Nigerian farmers do not have access to basic banking and financial services. For instance, some farmers in the rural areas of Plateau state do not have bank accounts while many of them do not have access to banks Farmer Pay was developed to enable farmers to make transactions online such as airtime purchases, withdrawals, deposits, bill payments through the wallet system. This is the first Agent Banking and Mobile Banking (USSD) platform in Nigeria.
Challenges and milestones
Some of the farmers the company loaned failed to repay the loan, however, the platform is listed on Lagos commodities exchange and Afex commodities exchange to trade on the trading floor. Its new solutions, Farmer Pay and Agro Money started at the end of May.
It has also added a POS platform in partnership with companies such as Paga, Flutterwave, and Global Accelerex. Farmer1st has 23,800 on its platform, having disbursed 377 loans with 1,100 Farm to off-taker deals completed.
