2024-03-12 07:29:39
Although livestock is an integral part of the global economy and provides food and other important products, access to financing for livestock projects remains difficult for many.
Aníbal José Ariza Orozco, a renowned rancher in the Caribbean region, assures that “there are many productive projects, as well as a high demand from ranchers. However, We do not have that timely credit, not even with high rates, because they do not give us the credits”.
This means that one of the main challenges in obtaining credit is the perception of risk by financial institutions. Livestock farming is exposed to a number of risks such as livestock diseases, fluctuations in animal feed prices and changes in conditions that can affect grass and forage production.
This market volatility makes financial institutions cautious when granting loans for livestock projects, as they fear the possibility of default by borrowers due to factors beyond their control. (Read in WITHlivestock context: Why livestock farmers should lose their fear of aid from banks)
Ariza Orozco points out “the policies are defined, the tools are established and we ranchers go to the bank and do the entire process, but when the bank does the analysis the answer is negative because it is believed that the rancher does not have liquid income”.
According to the leader, the rancher is not told about the assets he has in land, animals and the investments he makes for the activity.
“If what you receive is the income from the milk produced, that is not valid for the bank to classify it as a viable credit and many credits remain there,” mentions Ariza Orozco, who adds that “What is needed is for the government to understand that public banking has a social commitment, which is the activation of the agricultural sector.That is, to bring the sector to productive levels that serve the economy and society, and not the same spirit of private banking, which is that of profit.”
Uriel Humañez, a producer from the department of Córdoba, assures that “in our area, to access credits we must demonstrate that we have properties and a much higher daily or monthly income, that is, We must demonstrate that we do not need the credit to give it to us”.
Humañez says that when the rancher shows a need to the bank, This entity “places all the limitations in terms of procedures, documents, guarantors and a series of requirements.” which, for small producers, is almost impossible to comply with, which causes people to become discouraged.” (Read in WITHlivestock context: The lack of guarantees prevents livestock farmers from accessing development credit)
Ariza and Humañez agree that the Agrarian Bank is not there to obtain its own benefits or to place its resources in bonds, “the Agrarian Bank is there to promote agricultural activity.”
Overcoming these challenges requires concerted efforts by the National Government, financial institutions and the ranchers themselves. to develop innovative solutions that promote the growth and sustainability of the sector.
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