Advantages of Contract Farming for the Farmer

The Bank helps farmers with their agricultural production, securing for them access to the finance they need. It offers the necessary credit line to each and every farmer depending on their output.

Contract Farming Card

A credit limit is provided via the Contract Farming Card.

The credit limit is available:

  • To purchase agricultural inputs: Use the card at the POS installed at agricultural supply stores partnered with Piraeus Bank
  • To purchase fuel: Use the card at the POS installed at petrol stations partnered with Piraeus Bank
  • To purchase animal feed, veterinary medicines, replacement animals, other farm machinery and implements, and to maintain equipment: Simply present the appropriate invoices and receipts to your Bank branch
  • To cover labor costs by transferring the corresponding amount to the owner deposit account at any Bank branch

The Bank’s role

  • Provides access to financing in order to cover production costs will be available to farmers for the time period needed, to ensure they can achieve the best possible purchase prices. The Bank approves working capital to pay for the produce.

  • When farmers make cash purchases, the cost of production falls as they avoid higher input costs and the products become more competitive.

  • To obtain financing, it is not necessary to mortgage the farmer’s farm land or other assets.

  • There is an end to uncertainty about whether the crop and animal products will be sold since farmers know that their crop and animal products will be sold without problems based on the contract with the buyer.

  • There is also an end to uncertainty about payment for crop and animal products delivered since upon delivery, farmers receive payment in cash for the entire value of the delivered production, using the working capital for the processing company that has been pre-approved.

  • Farmers also know well in advance the price range within which their crop and animal products will be sold, since it will appear in the contract signed with the buyer.