(HERALD) ‘Budget review, Sterp in drive to boost production’

‘Budget review, Sterp in drive to boost production’
Business Reporter

FARMERS have described the reviewed national budget and the Short-Term Emergency Recovery Programme as a set up aimed at boosting production. Finance Minister Tendai Biti last week announced the two critical economic documents.

Commenting on the two policy statements, which seeks to revive the economy, Zimbabwe Commercial Farmers Union president, Mr Wilson Nyabonda said the most important aspect was the element of viability for farmers.

He said retaining 100 percent foreign currency after selling their produce was a motivational factor that would result in improved viability.

"Given that farmers no longer have to be given 7,5 percent of the total output in local currency means satisfactory returns after sale and this is a welcome development to farmers," Mr Nyabonda said.

Although the Zimbabwe dollar remains legal tender, it has essentially died as most business transaction are now done in foreign currency.

Mr Nyabonda said the use of Zimbabwean dollars was likely going to present challenges to farmers. He however indicated it was refreshing that most business transaction were now in foreign currency.

"Of course the Zimbabwean dollar is still legal tender but the public and traders are no longer accepting it as money so a number of farmers were going to face challenges using the local currency," said the ZCFU president.

Mr Nyabonda suggests that the Government should speed up the implementation of policies that would enable banks to access offshore loans.

"Lines of credit should start to flow so that farmers start accessing funds to finance their projects," he added.

Small holder farmers, Mr Nyabonda said, still needed special support, as they could not access funds for themselves.

"Government should continue to channel funds through the Agribank to small holder farmers"

Zimbabwe National Farmers Union National director, Mr Garikayi Msika said while the targeted wheat yield was achievable, there was need for the distribution of input timeously.

"Some farmers do have the money to purchase inputs such as seed, chemicals and fertilisers and these should be timely made available on the market," said Mr Msika.

He added that the inclusive Government had shown its commitment to production by strengthening extension services in Agritex, Veterinary Field Services, Veterinary Technical Services and Tsetse Control.

"The technical teams have always been there on the ground but have been facing transport and communication challenges and if these are improved, the officers would be able to deliver their services," he said.

Tobacco grower, Mr Tichaona Todzai said 100 percent retention in foreign currency from sale of agricultural produce would ensure adequate revenue for farmers to acquire inputs.

"We used to have these foreign currency retention facilities but we never got the money.

‘‘The process of accessing the foreign currency from the Reserve Bank of Zimbabwe was complicated and the season would advance before one got anything," Mr Todzai said.

"The Government has no money to finance farming so the role of banks have become critical.

Agricultural Economist, Trevor Jakachira said since there are no longer subsidies for farmers and farmers were now accessing inputs on their own, it was vital that they retained their full earnings

Mr Jakachira added that the de-regulation of the marketing system was meant to stimulate production and give farmers more access to resources.

"Farmers have been stimulated to produce so that the country earns foreign currency.

Mr Jakachira applauded the Minister for allocating funds towards the rehabilitation of major projects such as the Bubi-Lupane and construction of Mutange dam. More production is going to come through the improvement of existing irrigation schemes.

A total US$18,1 million was set aside for irrigation development of targeted schemes already espoused in the January budget.

However some farmers still felt this was inadequate considering the contribution of irrigation towards the national food security.