NIRSAL provides inputs, training to 1.2m farmers as it commences new farming model

The Nigeria Incentive-Based Risk-Sharing System for Agricultural Lending (NIRSAL) has formally launched a unique farming model at the Obafemi Awolowo University, Ile-Ife, Osun State.

The model is designed to simultaneously empower smallholder farmers and boost agricultural production on a structured and sustainable basis. The model, FAM-SMART, an acronym that stands Farm Aggregation Model is for for Smallholder Agriculture based on Technology. It is a rules-based, market-led and technology-driven system of primary production agriculture designed by NIRSAL for smallholder farmers anchored on three principles: Aggregation; Structured group dynamic and Proportionate cost and profit sharing in order to achieve economies of scale, maximum output and maximum profit.

NIRSAL geo-cooperatives established in different parts of the country will serve as the operational hubs for FAMSMART. In the immediate to medium term, the corporation plans to set up 16,000 of them.

Though NIRSAL has rolled out several FAM-SMART projects in a number of locations across the country, the Ife project is the first to be launched publicly proof of the great value NIRSAL places on its partnership with the institution.

Based on a projection that between 80% to 90% of a typical per hectare cost of any production is made up of input and services that can be institutionally supplied in a structured business model enabled by NIRSAL Credit Risk Guarantees and other strategic institutional support, FAM-SMART is an attractive investment opportunity for banks and the entire financial services sector.

Speaking on the FAM-SMART concept, MD of NIRSAL, Mr Aliyu Abdulhameed said: “This is a new paradigm in agricultural primary production in Nigeria. The concept and philosophy behind the model, which is what we are launching today, is such that provides a structured production system that is almost entirely driven by technology end-toend which makes it attractive to service and input providers and more importantly, rewarding for smallholder farmers.”

In his remarks at the event, OAU Vice Chancellor, Professor Eyitope Ogunbodede, expressed the appreciation of the institution to NIRSAL for initiating the FAMSMART project in it.

Recalling the role the university played in the agricultural successes of the old Western Region, he said OAU is both qualified and prepared to maximize the opportunity.