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(TALKZIMBABWE) Small farmers get US$30m boost

Small farmers get US$30m boost
By: Floyd Nkomo
Posted: Thursday, September 9, 2010 5:40 am

SMALLHOLDER farmers will benefit from a US$30 million facility unveilled yesterday by government. The facility will fund frmers’ operations during the 2010/2011 agriculture season. The banking sector has, however, indicated that they would not be funding farmers in the A1, small-scale and communal areas in the forthcoming season.

Speaking after a meeting with Agriculture, Mechanisation and Irrigation Development Minister Joseph Made in Harare yesterday, Zimbabwe Commercial Farmers’ Union president Mr Wilson Nyabonda said part of the fund would be forwarded to seed houses and fertiliser companies for inputs production for the farmers.

"This is a good development for the smallholder sector and will certainly boost production. We, however, urge Government to come up with a similar scheme for the A2 and commercial farmers who are at the moment still uncertain over their capacity to fund operations next season," he said.
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Mr Nyabonda said it was crucial for Government to come up with credit lines through the banking sector or any other possible avenue for large-scale commercial farmers to effectively finance their operations.

"Commercial farmers account for 40 percent of agricultural output especially grains for food security and contribute nearly 60 percent of tobacco output while contributing 99 percent of seed output.

"If this sector is not adequately funded, that would mean food security is grossly compromised with both tobacco and seed output also falling drastically," he said.

Government, he said, would soon work out modalities on how the funding for the smallholder farmers would be distributed.

Meanwhile, Bankers’ Association of Zimbabwe chairman Mr John Mushayavanhu said there was no need for this sector to have such a facility as they would be assisted by Government.

"We have no specific facility dedicated to A1 and communal farmers but willing, A2 farmers can successfully apply for farming loans from local banks as individuals," he said.

Labels: A2 FARMERS, JOSEPH MADE, WILSON NYABONDA

posted by MrK @ 6:24 AM