Maravi

(ZIMPAPERS) Farming contractors accused of cheating

Farming contractors accused of cheating
Sunday, 23 October 2011 01:42 Agriculture
Agriculture Editor

FARMING contractors have been castigated for short-changing farmers amid revelations that most growers have lost agricultural equipment and properties worth millions of dollars over the past two years. Investigations conducted by The Sunday Mail revealed that some contractors were making farmers sign contracts whose contents were vague.

Due to poor input supply systems and difficulties in accessing finance, farmers have been lured into such contracts on the understanding that the contractor would fulfil the obligations.

In most cases the contractors would be expected to supply inputs, working capital as well as provide tillage facilities.

The farmers would then be expected to pay back through bank stop orders or by selling their produce to the contractor who, in turn, deducts the percentage as agreed in the contract document.

However, the contractors in most cases have failed to honour their obligations, thereby forcing farmers to source their own inputs which in most cases have been inadequate due to limited resources.

As such the farmers have failed to produce the expected yield as well as planting the agreed hectarage.

However, the contractors, despite failure to fulfil contractual obligations, have been dragging farmers to debt collectors, forcing them to pay in accordance with the signed contract.

Agricultural, Technical and Extension Services (Agritex) head of agribusiness and marketing Mr Wellington Chaonwa said contractors shortchanging farmers risked being blacklisted.

He said his department was now assisting farmers to scrutinise and understand the clauses of contracts before signing.

“We have seen that most of the contracts are not clear. In some cases the contractors have offered low prices to farmers resulting in misunderstandings between the parties,” said Mr Chaonwa.

A tobacco farmer who signed a contract farming with a local company said he received a tractor, an irrigation pump and a disc harrow after paying a deposit.
The balance was to be paid through a stop order facility in which the company was to provide the inputs that included tobacco seedlings, fertiliser and wrapping material.

“Since I entered into this agreement three years ago, the company has not, in any single season, provided me with the inputs thereby forcing me to struggle with my payments,” he said.

Another farmer who entered into the same agreement with the company who preferred not to be named said the company was supposed to provide him with tobacco seedlings as well as wrapping material and fertiliser.

“It (the company) was to get its money through a stop order facility on delivering my tobacco to the floors. I have not received any inputs from the company, but it received payment each season despite the fact that I would have sourced my own inputs,’’ said the farmer.

However, the chief executive officer of the contracting company said the farmers were supposed to have approached his office before rushing to the Press.

“I am not in a position to entertain you because these farmers were supposed to approach us before going to the Press,’’ he said.

Another farmer from Centenary almost lost his farm equipment but was saved by a High Court ruling which stopped the debt collectors from seizing the property.

Labels: CONTRACT FARMING

posted by MrK @ 4:58 PM