R38m shot in the arm for farmers
Rural development agency sets aside R38m in loans for ploughing season
EASTERN Cape farmers can look forward to R38million being channelled by national government to the province to help emerging farmers during the ploughing season. Announcing the funding at a media breakfast in Bhisho yesterday, Rural Development MEC Zoleka Capa said the farmers would now be able to access the funding through R8 800 “soft loans” from the Eastern Cape Rural Development Agency (ECRDA).
Those eligible would repay a portion of the loan amounting to only R1 800.
“The acting CEO and chairman of the board [of the ECRDA] will work hand in glove with the department so that those who get loans we support until their produce is enough to pay their debt and allow them to also have food security and economic activity,” Capa said.
She also announced that farmers would not pay interest in the first 12 months and that there was a discount incentive for paying the debt back in a year.
Capa said the initiative was designed to support emerging farmers to double their production in various fields such as ploughing, beef farming and wool production. “We are
‘ We must offer loans so that you don’t get anything for free and do not depend on government
consistent on not promoting dependency. That is why we must offer loans so that you don’t get anything for free and do not depend on government,” she said.
Capa said national government had committed to providing the province with an additional R38-million for the ploughing season, but it was not clear when the amount would be made available.
She criticised provincial government for not making available a budget allocation for ploughing.
“We don’t derive any ploughing funding from our provincial equitable share. We survive from national and they have heard our voice,” she said, adding the province would double its effort to plough as much land as possible
Acting ECRDA CEO Lubabalo Mrwebi said should the R38-million be doubled as the national government committed, it would allow for the production of about 10 000ha of land.
“We are working under the assumption that for planting a hectare of land it is going to cost R8 800 but the government would pay R7 000 of that per hectare leaving R1 800 being the responsibility of the land owner.”
He explained that where farmers could not immediately pay the R1 800, the ECRDA would assist them by ensuring the loan would not attract any interest for the first year.