Mr. Nho Chan requested a loan to buy farming products, diesel for his tractor that he uses to plough his land and cover the harvesting costs. We went to visit Mr. Nho to find out how his farming was going, he said he has received a yield of around 2.5 tonnes per hectare (lower than his expectation), the lower yield was caused due to less rain fall. His land is not near the irrigation system which means his rice paddy crops are totally dependent on the rain fall. Although he did not get the yield he expected he made a reasonably good profit. Mr. Nho and the middleman agreed the price of the rice paddy crop of $200 (around £156.96) per tonne. He made a profit of around $1000 (around £784.92).
Mr. Nho saved up some profit to cover his next farming season and a part of the profit will be used to cover the loan repayment. He rented a thresher to collect the crops and the renting cost was around $80 (around £ 62.80) per hectare. Now it is the rainy season which means that Mr. Nho is busy preparing his land and soon he will start sowing the rice crops. This year his family income is better because he received a reasonable return from his farming activity.