HomeOld_PostsLack of funds haunts farmers

Lack of funds haunts farmers

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THE 2014/2015 cropping season is no different from the previous seasons as it is punctuated by the usual outcry of lack of funds to ensure maximum production.
Lack of cheaper finance to buy inputs and the prevailing liquidity constraints are drawing back crop production.
Since reclaiming the land from the white minority, efforts continue to be made to produce enough grain to meet annual requirements and increase production of cash crops.
However, the efforts are being hampered by the changing rainfall patterns and lack of resources.
In the past, Government has initiated programmes such as the Irrigation Development and Rehabilitation Scheme, Farm Mechanisation Programme and Presidential Well Wishers’ Special Agricultural Inputs Scheme to assist farmers.
Harsh critics have labelled the resettled farmers ‘cry babies’ who are always looking for hand-outs from Government and are not able to sustain themselves.
Some people against the Land Reform Programme tend to compare the resettled farmers who have been on the farms for only 15 years to white farmers who only began to make profits after more than 40 years tilling the land.
White farmers especially during the early days received massive support from their government which poured money into their farms.
Since then, the Land Bank, now the Agribank, increased loans and there was a three-year suspension on all repayments.
The white farmers were given loans worth $12 000 per farm per year which is equivalent to US$40 000.
However, have the resettled farmers come to a point where they should be weaned off from any form of support be it from Government or the private sector?
Economist Elliot Lumbe said it was too early to talk of not supporting the resettled farmers.
“Farmers cannot go it alone, if we expect them to turn around the fortunes of the sector they require assistance,” he said.
“Government should create a fund to assist farmers but, it is important that resources are allocated to performing farmers.”
Lumbe said it was imperative that any form of assistance or contract schemes be closely monitored.
“In the past there were cases where even inputs availed under the Presidential Well Wishers’ Special Agricultural Inputs Scheme did not reach the intended farmers, but were diverted to the black market,” he said.
“Farmers receiving assistance be it inputs, machinery or funds should be monitored to ensure they channel the resources to the intended use as we cannot have a situation whereby people get resources every year and do nothing with them.
“There are also other organisations duping farmers promising them assistance but do not deliver.”
Farmers have expressed disappointment with the late payment for grain delivered to the Grain Marketing Board (GMB), a phenomenon that is slowly becoming a norm.
For instance, farmers who delivered grain as far back as June last year are yet to be paid and this disrupted their preparations for the 2014/2015 cropping season.
“There is need to finance the GMB as most farmers have delivered crops that can earn them enough to go back into the fields,” said Lumbe.
“Institutions such as Agritex should be fully functional and equip farmers with skills to up production,” he said.
Lumbe encouraged the private sector to chip in and assist producers.
“The issue of food security is a national responsibility hence we cannot expect Government on its own to always bail out farmers,” he said.
“The Ministry of Agriculture, Mechanisation and Irrigation Development should be on the forefront lobbying for contract schemes and any other form of assistance from the private sector.”
Bankers Association of Zimbabwe advocacy officer, Clive Mphambela concurred with Lumbe on the creation of a fund to support farmers.
“There is need for the creation of funding bases such as the national farmers fund and to improve the formalisation of our farming business,” he said.
“Farmers should be able to access low-cost and long-term financing and efficient markets if they are to thrive.”
It is important to note that soon the winter wheat cropping season will be starting.
If the country is to avoid having to once again import the grain as a result of reduced hectarage and depressed yields, plans to finance the sector ought to start now.

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