OneVillage programs under Income Generation are meant to be supporting activities which maximize the potential of other program areas as well as provide more technical training to villages on sound business practices, entrepreneurship, and the integration of technology into business. This program area includes loans, strategic inputs for business development, and training. Income Generation is most closely linked with Agriculture, however, OneVillage plans to extend loan programs to other areas. Numerous loans are designed to target increased agricultural output. Without this source of capital in relation to agriculture, maximizing crop yields would not be possible.
Income generation activities are managed by 3 loan officers, one in each village. These officers are responsible for tracking loans, collecting payments, and facilitating bringing products to markets.
Thus far, our activities have included:
Storage Barrels – OneVillage would like farmers to reap the benefits of their hard work. Many farmers produce palm oil but did not have a means for storing the oil for future use. As a result, most farmers were forced to sell their oil at a low price only to purchase it back at a higher price later in the year. Families that received palm oil storage barrels are now able to appropriately benefit from their palm oil harvest all year long.
Agricultural Loans – OneVillage supports farmer productivity by offering 2 types of agricultural loans under a group lending model. The first type, a rice loan, is used to purchase rice if families experience a food shortage during the 3 month hunger season. Family heads of household apply in groups of 3 to 5 and then collectively pay the cost of rice plus interest beginning 2 months after the hunger season concludes. The second type, a brush loan, allows farmers to pay workers to clear and prepare their swamp rice farms or cocoa gardens for planting. Farmers apply in groups of 5 and collectively pay the original amount of the loan beginning 2 months after original loan disbursement.
Direct Purchase and 80/20 Loans – OneVillage strives to increase farmer profit by assisting farmer’s to sell crop yields at the highest price possible. Since farmers often are in need of immediate cash at harvest time, OneVillage purchases their produce at 80% of the market price and stores the produce until demand has increased and prices have risen. OneVillage then sells the produce in regional markets, subtracts the cost of the principal and 10% interest, with the remaining revenue going to the original farmer as profit.
Small Business Loans – OneVillage encourages small business entrepreneurs by providing capital investment loans. These loans are offered to a small group of individuals and have provided for businesses such as: bicycle rental, basket weaving, shop owners, and soap making.
Swamp Development Loans – OneVillage wants farmers to develop or expand their crop acreage. Unfortunately, developing a new rice swamp is financially unobtainable for the farmers. These loans pay for the labor and tools required to develop additional swamp farms. OneVillage employs agricultural experts that will work with farmers to employ proven techniques in developing additional swamp farms.
Pricing Blackboards – OneVillage wants farmers to have access to current crop prices. OneVillage purchased and installed a blackboard in each village in a central location. Loan officers are responsible for updating the current price of crops (rice, cocoa, coffee, palm oil, mosange oil, ground nuts) every 2 weeks.
OneVillage is in the process of further developing our goals and strategies under Income Generation. We have taken a household income survey and are currently analyzing the results.