US$1,5bn inputs kitty for farmers
GOVERNMENT and banks have set aside US$1,5 billion for the 2017-2018 summer cropping season to boost productivity and ensure food security.
According to the Bankers’ Association of Zimbabwe, financial institutions were prepared to give loans totalling US$1,1 billion while Government had would contribute US$487 million.
“The banking sector has set aside US$1,104 billion in funds for the 2017/ 2018 agricultural season, with each bank committing its apportionment. Tobacco and maize crops will be allocated a cumulative 72 percent or US$800 million while cotton will be allocated 5 percent or US$55 million of loans.
“Soya and livestock, both under Command Agriculture Scheme, will be allocated US$41 million and US$88 million respectively.”
Agriculture, Mechanisation and Irrigation Development Deputy Minister (Crop Production) Davison Marapira said: “Government has mobilised US$334 million for the 2017-18 agricultural season under the Command programmes.
“All the funds extended to beneficiaries under the Command Agriculture scheme are, therefore, being accounted for and audited under the Command Agriculture Fund approved by Parliament for that purpose and administered by the Ministry of Agriculture, Mechanisation and Irrigation Development, with recoveries maintained by Agribank.
“Building on the experiences of the first phase of the programme, preparations for the 2017-18 agriculture season have already begun, with mobilisation of financial resources, procurement of seeds, fertilisers and chemicals underway.”
Command Agriculture will work along side the Presidential Inputs Support Scheme, which will spread US$153,1 million across 1,8 million rural households.
Cotton will be supported to the tune of US$60 million, which covers 400 000 households, with grain production taking up US$52,9 million and US$80 million going to oilseed crops like soya beans.
Deputy Minsiter Marapira said farmers had started getting inputs, with some planting their first irrigated crops.
Some farmers are contracting with private firms like National Foods and Cairns.
The firms generally offer easier terms for farmers as compared to banks, which have been told by the Reserve Bank of Zimbabwe to cap interests rates at 12 percent per annum.
The Agriculture Ministry is lobbying for a 4 percent interest rate for Command programmes to ensure loans are paid back in time.