Industry

Chase Bank, John Deere in deal to offer farm equipment loans

signing

From right: Chase Bank head of agribusiness banking Samuel Ndonga, John Deere Financial managing director Jacques Taylor, John Deere vice president for international finance Steve Owenson, and Tata Africa managing director Thami Mbele during the signing of financial agreement for farm equipment on February 24, 2015. PHOTO | COURTESY

Farmers are set to benefit from affordable loans that will see them acquire latest farm equipment and technology to boost their yields.

This follows an agreement signed Tuesday by Chase Bank, US-based farm equipment maker financing arm John Deere Financial and local dealers Tata Africa and Mascorthat will give commercial farmers and mechanisation contractors access to credit.

The move is expected to help local adoption of mechanisation in the agriculture sector and spur growth of tractor sales.

“Access to credit has, in the past, been a major stumbling block in allowing smallholder farmers and small-scale contractors to employ on-farm technology. The contractor model, in co-operation with John Deere, offers an innovative solution to this problem,” said Chase Bank’s head of agribusiness banking Samuel Ndonga.

John Deere will also offer operator and business training support to commercial farmers and contractors.

“With innovative finance solutions, John Deere aims to support the existing emerging commercial and contractor segment and to develop new contractors to serve the smallholder farmers allowing them access to mechanisation technology via a contractor model,” added Jacques Taylor, the John Deere Financial sub-Saharan Africa managing director.

Through this new agreement John Deere hopes to increase local sales volume by Sh1.4 billion ($15 million) in the next three years.