Financing Honduras’ Future: Access to Credit for Young Honduran Producers

The initiative, supported by USAID-ACCESO, addresses the challenge of limited affordable credit options for rural farmers with limited or no assets. Financial institutions often view these farmers as high-risk borrowers, making it difficult for them to invest in their own production activities. To address this issue, USAID-ACCESO links young Hondurans directly to rural financing services that provide affordable credit for agricultural activities. In December 2011, the Cooperativa Mixta-Unidas Para Progresar in La Paz began offering loans for horticultural and livestock activities to project clients. The credit providers are confident in the clients who work with USAID-ACCESO, as they receive ongoing technical assistance to improve the quality and yields of their crops. The program has already shown significant results. Brothers Fernando and Samuel Osorio, both under the age of 30, borrowed $780 to fund improvements on their small farm. The loan enabled them to invest in a drip irrigation system, giving them dependable year-round access to water. This investment, accompanied by technical assistance on good agricultural practices, has enabled the Osorios to increase their farm yields and improve their food security and household income. The small loan has already yielded big results. Within six months, the Osorios' corn, tomato, pepper, and green bean yields increased significantly. Their tomato yields doubled from 25 to 50 quintals on 0.25 hectares. USAID-ACCESO has also connected the brothers with reliable local buyers. Thanks to the higher yields and sales, the brothers quickly paid off their loan and opened savings accounts with the credit agency to save for future investments to improve their fields and homes. The program has facilitated loans totaling $3,131,139 for 2,270 clients from 187 lending sources. Nearly 40 other young producers in La Paz are participating in the project-backed dairy and livestock activities. Dina López, 16, received approval for a loan to start a dairy project, producing milk and cheese for sale to local markets. She expressed her happiness at being able to work on her own project, highlighting the positive impact of the program on young producers in rural Honduras.