Loans help farmers invest in land to benefit families
The Haroyan family lives in an ordinary village house in Garnahovit, in the Talin region of north-west Armenia.
Four joyful children grow up here in an atmosphere of love and care but their father Artak has missed out on raising the elder children because every year he has spent long periods of time in Russia to earn money through trading or construction. The seasonal migration provides some income to take care of the urgent needs of the family but at a great cost to each family member.
“Seasonal jobs are never stable; they have a component of high risk. But more importantly, you are away from your family for months and you miss the children a lot”, says Artak.
Seasonal jobs are never stable; they have a component of high risk. But more importantly, you are away from your family for months and you miss the children a lot Garnahovit is located 2200m above sea level and is characterised by a very tough climate. The land is not suitable for crops that can generate a better income and if the land is not used wisely, farmers can find themselves paying out more than what they have earnt with all their hard work.
“People have tried to establish orchards here and to grow fruit but the attempts are in vain. Farmers know the peculiarities of their land very well. Without the initial capital you can never succeed. The small income farmers have after the harvest is spent to heat the houses during long winters and to buy the most important things for children. So, they need some support in early spring to be able to invest in the land”, explains Artak.
“Yes, the government gives some subsidy to the farmers who live in villages like ours. But the subsidy is provided at the end of the agricultural year and is less then 35,000 AMD (US$90.00). It is not enough for a farmer who has to rent agricultural machinery, buy fuel, seeds and fertilizer, and simultaneously take care of the family”, he explains.
When World Vision initiated an irrigation project in Garnahovit some years ago, Artak was keen to help anyway he could. It also proved to be a personal turning point for the farmer.
“Artak volunteered to join us and mobilized all the young people in the community around the project. When I heard he had a piece of land and had problems with initial capital, I explained the kinds of services SEF International (microfinance institution) can offer”, recalls Artur Navasardyan, World Vision Talin Area Development Programme (ADP) specialist.
Before applying for the first loan from World Vision’s microfinance institution in 2008 Artak was cultivating five hectares of his own land to grow potato, barley, wheat, hay, and cabbage. The harvest was always poor because he was using low quality seeds. Aside from farming Artak had to run a milk collection business to supplement the low income. He would collect milk from villagers and organised transportation of the milk to the nearest dairy plant. It was not an easy job because farmers were only supplying him with 10-15 litres of milk, requiring him to visit a large number of people to collect a sufficient quantity.
Artak used his first loan of 480,000 AMD (US$1,240) to buy quality barley seeds and obtained potato seeds from the Seed Selection Center at 600 AMD per kilo instead of buying it from villagers who sell the seeds at 150 AMD, as he was doing in previous years.
“I spend three times more on potato seeds but I get 10 times higher yield. Villagers know the difference in the quality of the seeds but they don’t have the initial capital to invest”, explains Artak.
I spend three times more on potato seeds but I get 10 times higher yield Artak returned the first loan much earlier than the closing date and his subsequent loan of 730,000 AMD (US$1,884) was approved quickly in March 2009.
“I saw the impact of the loan and was more confident while taking the second loan. In addition to my own land I decided to rent another five hectares of government reserved lands. The rent cost is very low but farmers do not use these lands. They are even unable to cultivate their own because of lack of financial means”, clarifies Artak.
Artak regularly works around 14 hours a day – and even longer during harvest. “As a traditional family we live with my parents. My mother helps my wife Irina with household duties and animals; my father manages the field work. My father and I are ready to cultivate as much land as possible. I have four young children and have to take care of them”, says Artak.
Not all of the crops that the Haroyans grow are for sale. With eight family members in the household some of the yield is kept back for self consumption.
“We use the cabbage and wheat to consume ourselves only. We take wheat to the mill and reserve 15 sacks of flour for the year. I bake lavash (Armenian traditional thin bread) as almost all women of the village. Lavash is very tasty and healthy bread. Also, we save money when we bake at home”, says Artak’s wife Irina Malkhasyan, 32.
Irina shares that they keep 100 kilos of potatoes for themselves and sell the rest. Last year they harvested six tonnes of potatoes and sold them at 100 AMD per kilo – giving them a total of US$1,548.00. This year they expect to double their yield and earnings.
“For proper education and nutrition of the children we need to earn more. Two of our children, Diana, 11 and Liana, 9 go to school. Stationary and winter clothing requires a lot of money. Melineh, 3 and Nairi, 2 are too young and need permanent health care. With more income it will be easier to meet their urgent needs”, says Irina.
Artak used to have a herd of cows but was forced to significantly reduce the number because Irina has very little time to look after the cows with young children to care for. Even though it is difficult to take care of livestock during the long winters Artak and Irina want to expand the herd when the children are older in order to have more fresh milk, home-made cheese, yoghurt, and other dairy products which are so important for the children’s nutrition.
“Life in Garnahovit is extremely hard. However, if I have enough resources to ensure the healthy growth of my children and proper living to my parents I would never leave my village. After all, many of us migrate in despair”, shares Artak.
...if I have enough resources to ensure the healthy growth of my children and proper living to my parents I would never leave my village “My father often left us alone with my mum and grandparents for six-seven months. I hate to remember these days. He promised to stay with us in the future”, says Diana hugging her father. “Now during the winter when my father has some spare time, he organises different games for us. Our family spends very nice evenings together,” she continues.
SEF International has registered some 600 clients in the Talin region since starting operations in 2007.
“Farmers in Armenia do not have easy access to financial resources. The property they have is usually not valuable enough to serve as collateral. We offer affordable terms to farmers. We prepare the loan package very quickly and the client receives the loan within ten days after application,” explains Lusine Simonyan, Credit Officer for SEF International.
“Now I have this support from SEF and can make investments in the beginning of the agricultural year and return the loan in the fall when I have some income. I receive not only money but also consultation on how to run my business to have minimum risks and losses. I share my experience with other farmers - there are enough reserved lands and if farmers wish they could also expand their business”, concludes Artak.
-Ends-
Four joyful children grow up here in an atmosphere of love and care but their father Artak has missed out on raising the elder children because every year he has spent long periods of time in Russia to earn money through trading or construction. The seasonal migration provides some income to take care of the urgent needs of the family but at a great cost to each family member.
“Seasonal jobs are never stable; they have a component of high risk. But more importantly, you are away from your family for months and you miss the children a lot”, says Artak.
Seasonal jobs are never stable; they have a component of high risk. But more importantly, you are away from your family for months and you miss the children a lot Garnahovit is located 2200m above sea level and is characterised by a very tough climate. The land is not suitable for crops that can generate a better income and if the land is not used wisely, farmers can find themselves paying out more than what they have earnt with all their hard work.
“People have tried to establish orchards here and to grow fruit but the attempts are in vain. Farmers know the peculiarities of their land very well. Without the initial capital you can never succeed. The small income farmers have after the harvest is spent to heat the houses during long winters and to buy the most important things for children. So, they need some support in early spring to be able to invest in the land”, explains Artak.
“Yes, the government gives some subsidy to the farmers who live in villages like ours. But the subsidy is provided at the end of the agricultural year and is less then 35,000 AMD (US$90.00). It is not enough for a farmer who has to rent agricultural machinery, buy fuel, seeds and fertilizer, and simultaneously take care of the family”, he explains.
When World Vision initiated an irrigation project in Garnahovit some years ago, Artak was keen to help anyway he could. It also proved to be a personal turning point for the farmer.
“Artak volunteered to join us and mobilized all the young people in the community around the project. When I heard he had a piece of land and had problems with initial capital, I explained the kinds of services SEF International (microfinance institution) can offer”, recalls Artur Navasardyan, World Vision Talin Area Development Programme (ADP) specialist.
Before applying for the first loan from World Vision’s microfinance institution in 2008 Artak was cultivating five hectares of his own land to grow potato, barley, wheat, hay, and cabbage. The harvest was always poor because he was using low quality seeds. Aside from farming Artak had to run a milk collection business to supplement the low income. He would collect milk from villagers and organised transportation of the milk to the nearest dairy plant. It was not an easy job because farmers were only supplying him with 10-15 litres of milk, requiring him to visit a large number of people to collect a sufficient quantity.
Artak used his first loan of 480,000 AMD (US$1,240) to buy quality barley seeds and obtained potato seeds from the Seed Selection Center at 600 AMD per kilo instead of buying it from villagers who sell the seeds at 150 AMD, as he was doing in previous years.
“I spend three times more on potato seeds but I get 10 times higher yield. Villagers know the difference in the quality of the seeds but they don’t have the initial capital to invest”, explains Artak.
I spend three times more on potato seeds but I get 10 times higher yield Artak returned the first loan much earlier than the closing date and his subsequent loan of 730,000 AMD (US$1,884) was approved quickly in March 2009.
“I saw the impact of the loan and was more confident while taking the second loan. In addition to my own land I decided to rent another five hectares of government reserved lands. The rent cost is very low but farmers do not use these lands. They are even unable to cultivate their own because of lack of financial means”, clarifies Artak.
Artak regularly works around 14 hours a day – and even longer during harvest. “As a traditional family we live with my parents. My mother helps my wife Irina with household duties and animals; my father manages the field work. My father and I are ready to cultivate as much land as possible. I have four young children and have to take care of them”, says Artak.
Not all of the crops that the Haroyans grow are for sale. With eight family members in the household some of the yield is kept back for self consumption.
“We use the cabbage and wheat to consume ourselves only. We take wheat to the mill and reserve 15 sacks of flour for the year. I bake lavash (Armenian traditional thin bread) as almost all women of the village. Lavash is very tasty and healthy bread. Also, we save money when we bake at home”, says Artak’s wife Irina Malkhasyan, 32.
Irina shares that they keep 100 kilos of potatoes for themselves and sell the rest. Last year they harvested six tonnes of potatoes and sold them at 100 AMD per kilo – giving them a total of US$1,548.00. This year they expect to double their yield and earnings.
“For proper education and nutrition of the children we need to earn more. Two of our children, Diana, 11 and Liana, 9 go to school. Stationary and winter clothing requires a lot of money. Melineh, 3 and Nairi, 2 are too young and need permanent health care. With more income it will be easier to meet their urgent needs”, says Irina.
Artak used to have a herd of cows but was forced to significantly reduce the number because Irina has very little time to look after the cows with young children to care for. Even though it is difficult to take care of livestock during the long winters Artak and Irina want to expand the herd when the children are older in order to have more fresh milk, home-made cheese, yoghurt, and other dairy products which are so important for the children’s nutrition.
“Life in Garnahovit is extremely hard. However, if I have enough resources to ensure the healthy growth of my children and proper living to my parents I would never leave my village. After all, many of us migrate in despair”, shares Artak.
...if I have enough resources to ensure the healthy growth of my children and proper living to my parents I would never leave my village “My father often left us alone with my mum and grandparents for six-seven months. I hate to remember these days. He promised to stay with us in the future”, says Diana hugging her father. “Now during the winter when my father has some spare time, he organises different games for us. Our family spends very nice evenings together,” she continues.
SEF International has registered some 600 clients in the Talin region since starting operations in 2007.
“Farmers in Armenia do not have easy access to financial resources. The property they have is usually not valuable enough to serve as collateral. We offer affordable terms to farmers. We prepare the loan package very quickly and the client receives the loan within ten days after application,” explains Lusine Simonyan, Credit Officer for SEF International.
“Now I have this support from SEF and can make investments in the beginning of the agricultural year and return the loan in the fall when I have some income. I receive not only money but also consultation on how to run my business to have minimum risks and losses. I share my experience with other farmers - there are enough reserved lands and if farmers wish they could also expand their business”, concludes Artak.
-Ends-
Share