One of the biggest concerns for farmers is the high cost of acquiring machinery to improve efficiency on their farms.
However, this fear is often compounded by a lack of information on how, where, and when to access such equipment.
To address this challenge, platforms like Harvest Money are leading efforts to bridge the logistical and informational gap between farmers and service providers.
Among the key players at the forefront of agricultural mechanisation is MASKO, the main supplier of John Deere tractors. In partnership with Opportunity Bank, MASKO is facilitating affordable financing options for farmers.
According to Edith Batuuka, Agricultural Finance Supervisor at Opportunity Bank, the partnership aims to encourage farmers to embrace mechanisation, especially in an economy where many are yet to appreciate its full benefits.
“With this partnership, we are bringing financing closer to farmers who are adopting mechanisation because we know that most of them cannot afford to buy these machines outright,” she said.
Batuuka explained that the financing options available through the partnership offer favourable terms and interest rates.
“We have three financing options, one of which is provided under the Agricultural Credit Facility by the Bank of Uganda. Through this, farmers can access production loans at an interest rate of 12%, while they contribute 30% of the total cost. The repayment is structured around the farmer’s agricultural cash flow,” she said.
Farmers cultivating 20 acres or more are eligible for the loan, with the assessment taking into account factors such as production goals, harvest frequency, and the number of farming seasons.
The repayment plan is then customised based on the seasonal cash flow of the farmer’s specific region.
With this financing, farmers can acquire tractors that support the entire production process—from land clearing and planting to harvesting.
Loan requirements and technological benefits
One of the key requirements for farmers seeking financing is comprehensive insurance for the tractor, depending on the type of machine they choose.
However, Batuuka noted that this is offered at a subsidised rate.
She also highlighted the technological benefits integrated into the programme.
“Previously, many farmers struggled with tractor operators, and as a result, some were unable to repay their loans. To address this, we partnered with service providers such as Halo Tractors to install telematics in the machines,” she explained.
The telematics system enables farmers to track the acreage covered, monitor fuel consumption, and even geo-fence or immobilise tractors if they need to restrict movement beyond designated boundaries.
With these innovative financing solutions and technological advancements, Opportunity Bank and MASKO are making mechanisation more accessible and sustainable for Ugandan farmers.
