We are half way the rainy season, The rainy season has started in Myanmarmarking an uncertain period for smallholder farmer families. Potential harmful floods, pest and diseases are having an enormous impact on their income. Farmers are vulnerable, as they have limited access to financing and insurance options to prevent or recover from potential losses. Many farmers are forced to borrow money at sky-high interest rates to be able to buy their input products such as seeds, fertilisers, and equipment.
Mobile technology is about to change this. Impact Terra, an ag- and fintech start-up, aims to improve access to finance for farmers through its free mobile farming application and web-app Golden Paddy.
Erwin Sikma, founder of Impact Terra: “We clearly see a demand from farmers for objective real-time available information, easy access to markets and proper access to financing options. Golden Paddy has proven to be a reliable source of knowledge for farmers. Data from our platform, farmer interviews and feedback from our partners show that farmers are changing their decision-making and farming processes. Significant impact on yields and income will however take time”.
Golden Paddy aims to make farmers more knowledgeable and independent, generating a higher income and ultimately improving the livelihood of smallholder farming families. The Golden Paddy services are free of charge. The app and website already offer farmers real-time and personalized warnings about water and pest risks, as well as up to date market information, and crop and location specific knowledge. In the near future, farmers can also access financial services through the mobile application and web-app.
Farmers have been disconnected from financial services
Financial and insurance options are scarce for farmers as financial institutions lack access to information to make decisions upon. As farming is a dynamic and volatile process, heavily impacted by factors such as weather, prices and practices, specific financial products are needed. However, data is scarce in Myanmar. There is no data available to evaluate the risks of lending to farmers or groups of farmers. Therefore financial institutions face significant challenges in developing these products and assessing exact product structure, pricing and risks. To make matters more complicated, transaction costs for delivering financial products are high due to the remoteness of farms, and the poor physical infrastructure in Myanmar. Data from Golden Paddy can provide the insights that financial institutions need.
By providing data about farmers, their crops and expected yields, Golden Paddy can offer the data that financial institutions can use for credit risk assessments. The financial institutions are better capable to evaluate the risks of lending to farmers or groups of farmers and assess the exact product structure and pricing of the services. Even the farmers considered as high risk investment, have the opportunity to access better and more fair loans, at reasonable interest rates.
Golden Paddy helps to distribute the financial products, as the mobile application and web-app enable direct and low-cost access to rural farmers. Since its launch last December, Golden Paddy has grown fast to a community of over 2 million farmers, and has users in more than 96% of all townships in Myanmar.
The Golden Paddy platform can supports the creation of a financial market for farmers and is, bridging the gap between farmers and respected lenders. Lowering barriers for farmers to access finance is key to ensure a sustainable growth of the agricultural sector in Myanmar.
Mobile technology is about to change this. Impact Terra, an ag- and fintech start up, aims to improve access to finance for farmers through its free mobile farming application and website Golden Paddy. Data from Golden Paddy can provide the insights that financial institutions need.
Golden Paddy is a free online service for farmers, retailers and agribusinesses. The app and website already offer farmers real-time and personalized warnings about water and pest risks, as well as up to date market information, and crop and location specific knowledge. By providing these services, Golden Paddy aims to make farmers more knowledgeable and independent, generating a higher income and ultimately improving the livelihood of smallholder farming families.
Erwin Sikma, founder of Impact Terra: “We clearly see a demand from farmers for objective real-time available information, easy access to markets and proper access to financing options. Golden Paddy has proven to be a reliable source of knowledge for farmers. Data from our platform, farmer interviews and feedback from our partners show that farmers are changing their decision-making and farming processes. Significant impact on yields and income will however take time”.
ABOUT IMPACT TERRA Impact Terra is an agriculture and financial technology venture based in Myanmar that aims to leverage connectivity to improve the livelihoods of smallholder farmer families. For more info go to www.impactterra.com, or get in touch via email: impact@impactterra.com.
The free mobile application can be downloaded from Google Playstore.
