Debt traps


Farm Hand
Crop loans are usually taken at the beginning of the season and repaid after harvest. With cultivation dependent on rain (a natural resource),what is the best way to cushion ourselves from a debt trap?

Smarty Plants

Farm Hand
I always think farmers can benefit from diversification. Then, if one crop fails, another might be enough to keep you going. It also helps to keep a steady paycheck coming in, so at least in the beginning, someone should have a solid job. What do you think is the best way to avoid a debt trap, @FarmEnthusiast?

Almost Eden

Golden Chicken
If I lived overseas I'd look into getting a loan through Kiva. I've made loans there (it's more a charity thing than a money earner) and the farmers were able to do amazing things with it. Kiva changed their platform at some point to include what they call Field Partners. Field Partners charge interest, which is unfortunate, but it's supposed to be less than what you'd usually see. You can borrow in the US too, but I don't know much about that. You can get a direct loan without interest but that only works for US borrowers and international organizations.