MED: Agricultural crediting breaks the cycle of poverty for a farmer in Syunik
Smbat’s wife, Hasmik is a nurse at the local health post. While Astghik is at work, Smbat’s mother Ashken takes care of the house and her two grandsons, Samson, 13 and Sarkis, 10. Ashken has already turned 82, but she is still full of energy. When she is done with her routine chores, she always finds something to do like spinning yarn or knitting warm socks for her grandchildren.
Smbat is a member of the agricultural group that receives loans from Sisian branch of SEF International, World Vision’s MFI in Armenia.
Like other farmers in this rural region Smbat works on his land, which he received after the land privatization following the collapse of the Soviet Union in 1991. Yet successful farming was impossible without additional investment, and only few people managed to succeed on their own.
“Farmers like me couldn’t survive without any support,” Smbat says. “For example, I kept several sheep, but knew beforehand that I would have to sell them all in spring in order to buy seeds for sowing, fuel or fertilizers. Later I had to sell the entire crop to pay for household expenses and buy animals for breeding. I always tried to calculate all the expenses in advance, but the prices change constantly, and I made less profit than expected. I was left with nothing at the end,” he continues.
Smbat constantly struggled to meet basic household needs, yet even buying clothes or school supplies for children or paying electricity bills would become a heavy burden on the family budget.
Yet Smbat is not the one who likes to complain about hardships: “I never was unemployed. I owned land to work on and kept animals. I just needed some help to be able to use all those resources in full and support my family,” he says.
Few years ago Smbat learned about agricultural crediting in Armenia. “I heard about such loans from other farmers, and when SEF started crediting program in our area, I immediately decided to apply,” he says.
As a member of agriculture credit group formed by SEF International, Smbat received his first loan of 250,000 Drams (US$ 440) three years ago and his life started to change.
Smbat owned 5 hectares of farming land and decided to invest his first loan in wheat cultivation. He used that money for buying seeds, fertilizers and for renting agricultural machines.
“SEF clients usually receive loans in September. The money allows covering their current expenses and saving their yield for selling it later, when the wheat price increases. That way they are able to make some profit,” explains Vardan Mangasaryan, the leader of the agricultural group.
“I am very thankful to SEF. The loan helped me sell my produce at the best time and at the best price. Without that support I would be set back (or struggling?),” says Smbat.
The income from wheat sales allowed him to pay back his loan on time.
“Wheat cultivation is the most important part of agriculture. Yet the successful farmer could not rely only on it. Droughts or hail storms are common in our area and the crop depends very much on weather,” says Smbat.
That is why he decided to use his second loan of 400,000 Drams (US$ 900) to buy more animals for breeding. He now keeps 6 cows, 30 sheep several pigs and some 70 chicken.
“I have everything- cows, pigs, sheep and chicken. I don’t depend on wheat prices anymore. If the crop is not good, I could make enough profit from meat sales. I also grow potatoes and other vegetables. Last year I gathered at least 2 tons of potatoes,” Smbat says proudly.
He is now able to buy school supplies, warm clothes and other things for his children. The loans also helped to improve his family’s living conditions. Last year he decided to install natural gas in the house for heating and household use, which is less expensive than electricity or firewood. He also bought a new TV set.
At present SEF International has 450 1,019 clients in Sisian area. Average loan size is 270,000 Drams ( 710).
“Farmers receive loans in spring and autumn when they need money to purchase seeds for planting. In autumn they also need financial support to buy animals for breeding,” says Arthur Mkrtumyan, the SEF International Sisian branch manager.
In Shaqi village more than 40 families benefit from agricultural crediting. According to Vardan Mangasaryan, even more people wish to apply for loans, because it is very convenient and cost-effective.
This is one of the reasons that the out-migration rate in villages like Shaqi is much lower than in other areas, where people leave their homes and move to big cities or go Russia and other countries in search of employment.
Last spring Smbat Srapyan received his third loan of 500,000 Drams (US$ 1,100). “Just two years ago I would not be able to pay back that amount of money, but now I am ready to take even larger loan and pay it off,” he says confidently. “In part, it is because I am not working alone anymore. My sons have grown up, and they help me a lot,” Smbat says proudly.
His two sons definitely are the ones to be proud of. Sarkis, the youngest one, is so dynamic and active, that seems to be doing everything at once - talking, playing, working with his father.
“I help my Dad to clean the barn and bring water and grass for cows. I look after pigs, I don’t let them go outside, I also like plowing, playing football and biking. I don’t have a bike of my own, but Dad has promised to buy me one,” says Sarkis.
Elder brother, Samson, is less expressive and looks more like his father. He is a teenager, but tries to be serious and behave “like a grown-up man”. He is already considering a career as a lawyer, but also likes looking after animals.
“Most of all I like harvesting, especially when the crop is good”, Samson says. “In summertime I often go swimming in a small river just outside our village, but I like to swim in the Lake Sevan most,” he says.
Last year Smbat managed to save some money and buy a used car- a pretty old and cheap one, but it allows him to take his family on vacation to the Lake Sevan, which is few hundred kilometers away from Shaqi.
“I promised to take my children on vacation, and tried to keep that promise, even though there was a plenty of work here. The boys really deserved that vacations,” their father says.
“Even at this age they help me with everything. They learn to work on the land, which I think is good for them. I want them to receive a good education and have a career of their choice, but I also want them to learn everything about farming. They were born here, and they don’t have to forget their roots. This is what I try teach my children,” says Smbat.
Smbat is a member of the agricultural group that receives loans from Sisian branch of SEF International, World Vision’s MFI in Armenia.
Like other farmers in this rural region Smbat works on his land, which he received after the land privatization following the collapse of the Soviet Union in 1991. Yet successful farming was impossible without additional investment, and only few people managed to succeed on their own.
“Farmers like me couldn’t survive without any support,” Smbat says. “For example, I kept several sheep, but knew beforehand that I would have to sell them all in spring in order to buy seeds for sowing, fuel or fertilizers. Later I had to sell the entire crop to pay for household expenses and buy animals for breeding. I always tried to calculate all the expenses in advance, but the prices change constantly, and I made less profit than expected. I was left with nothing at the end,” he continues.
Smbat constantly struggled to meet basic household needs, yet even buying clothes or school supplies for children or paying electricity bills would become a heavy burden on the family budget.
Yet Smbat is not the one who likes to complain about hardships: “I never was unemployed. I owned land to work on and kept animals. I just needed some help to be able to use all those resources in full and support my family,” he says.
Few years ago Smbat learned about agricultural crediting in Armenia. “I heard about such loans from other farmers, and when SEF started crediting program in our area, I immediately decided to apply,” he says.
As a member of agriculture credit group formed by SEF International, Smbat received his first loan of 250,000 Drams (US$ 440) three years ago and his life started to change.
Smbat owned 5 hectares of farming land and decided to invest his first loan in wheat cultivation. He used that money for buying seeds, fertilizers and for renting agricultural machines.
“SEF clients usually receive loans in September. The money allows covering their current expenses and saving their yield for selling it later, when the wheat price increases. That way they are able to make some profit,” explains Vardan Mangasaryan, the leader of the agricultural group.
“I am very thankful to SEF. The loan helped me sell my produce at the best time and at the best price. Without that support I would be set back (or struggling?),” says Smbat.
The income from wheat sales allowed him to pay back his loan on time.
“Wheat cultivation is the most important part of agriculture. Yet the successful farmer could not rely only on it. Droughts or hail storms are common in our area and the crop depends very much on weather,” says Smbat.
That is why he decided to use his second loan of 400,000 Drams (US$ 900) to buy more animals for breeding. He now keeps 6 cows, 30 sheep several pigs and some 70 chicken.
“I have everything- cows, pigs, sheep and chicken. I don’t depend on wheat prices anymore. If the crop is not good, I could make enough profit from meat sales. I also grow potatoes and other vegetables. Last year I gathered at least 2 tons of potatoes,” Smbat says proudly.
He is now able to buy school supplies, warm clothes and other things for his children. The loans also helped to improve his family’s living conditions. Last year he decided to install natural gas in the house for heating and household use, which is less expensive than electricity or firewood. He also bought a new TV set.
At present SEF International has 450 1,019 clients in Sisian area. Average loan size is 270,000 Drams ( 710).
“Farmers receive loans in spring and autumn when they need money to purchase seeds for planting. In autumn they also need financial support to buy animals for breeding,” says Arthur Mkrtumyan, the SEF International Sisian branch manager.
In Shaqi village more than 40 families benefit from agricultural crediting. According to Vardan Mangasaryan, even more people wish to apply for loans, because it is very convenient and cost-effective.
This is one of the reasons that the out-migration rate in villages like Shaqi is much lower than in other areas, where people leave their homes and move to big cities or go Russia and other countries in search of employment.
Last spring Smbat Srapyan received his third loan of 500,000 Drams (US$ 1,100). “Just two years ago I would not be able to pay back that amount of money, but now I am ready to take even larger loan and pay it off,” he says confidently. “In part, it is because I am not working alone anymore. My sons have grown up, and they help me a lot,” Smbat says proudly.
His two sons definitely are the ones to be proud of. Sarkis, the youngest one, is so dynamic and active, that seems to be doing everything at once - talking, playing, working with his father.
“I help my Dad to clean the barn and bring water and grass for cows. I look after pigs, I don’t let them go outside, I also like plowing, playing football and biking. I don’t have a bike of my own, but Dad has promised to buy me one,” says Sarkis.
Elder brother, Samson, is less expressive and looks more like his father. He is a teenager, but tries to be serious and behave “like a grown-up man”. He is already considering a career as a lawyer, but also likes looking after animals.
“Most of all I like harvesting, especially when the crop is good”, Samson says. “In summertime I often go swimming in a small river just outside our village, but I like to swim in the Lake Sevan most,” he says.
Last year Smbat managed to save some money and buy a used car- a pretty old and cheap one, but it allows him to take his family on vacation to the Lake Sevan, which is few hundred kilometers away from Shaqi.
“I promised to take my children on vacation, and tried to keep that promise, even though there was a plenty of work here. The boys really deserved that vacations,” their father says.
“Even at this age they help me with everything. They learn to work on the land, which I think is good for them. I want them to receive a good education and have a career of their choice, but I also want them to learn everything about farming. They were born here, and they don’t have to forget their roots. This is what I try teach my children,” says Smbat.
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