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ZIMBABWE: No support for struggling new farmers
IRIN News
September 19, 2006

http://www.irinnews.org/report.asp?ReportID=55626

HARARE - The government's withdrawal of free agricultural inputs for new farmers is certain to affect food production adversely, analysts are warning.

Farmers who were allocated land under the fast-track land reform programme that began in 2000 have received fertilisers and seed for the past three years, for which they could pay after the harvest, but last month the agriculture ministry announced that it had stopped the "free" inputs scheme.

"Government cannot do everything for the farmers and we are saying, 'let the farmers have the initiative'," the ministry's permanent secretary, Simon Pazvakavambwa, told a parliamentary committee.

Denford Chimbwanda, chairman of the Grain and Cereal Producers Association (GCPA), told IRIN that while farmers should not look to government for permanent subsidies, completely withdrawing support was "disastrous".

"The decision to discontinue loaning out inputs is going to seriously compromise our preparations and production targets. The withdrawal of support should have come in phases, and I foresee the majority of farmers reducing the size of land they will be tilling this season," he said.

Most agricultural inputs are imported and have become all but unaffordable for many farmers, who are suffering the combined effects of Zimbabwe's steadily deteriorating economy and last season's low yields after widespread shortages of chemicals, fertilisers and seed.

Fertiliser companies have hiked prices by almost 100 percent, citing a 300 percent increase in transportation costs of the basic ingredients in fertiliser. A 50kg bag of ammonium nitrate, used for growing maize, doubled in price to Z$4,400 (US$17.60), while the average price on the parallel market has reached Z$5,000 ($US20).

The Reserve Bank of Zimbabwe announced recently that it had secured a US$490 million loan for purchasing agricultural equipment, inputs and fuel, with part of it to be disbursed to banks for loans, although the move has not impressed farmers, who say the money has come too late.

The multimillion dollar loan would provide finance to companies that manufacture or import inputs and equipment, such as tractors and irrigation equipment, but not for farmers' immediate planting requirements.

"While the government should be applauded for managing to obtain the money, the difference that could make might be minimal because of ill timing," Chimbwanda said. "The process of obtaining money from the banks takes a long time and, while farmers might need cash to replace worn-out equipment now, it might not be possible for them to get finance before the rains start falling."

Terence Makuyana, 45, who has a 50ha plot about 80km north of the capital, Harare, said even if the banks had finance for loans, farmers like him would find it difficult to access it.

"I have not been able to obtain a loan from the banks, because all the time I approach them, they say they need me to demonstrate that I have the required experience as a farmer and have a proven record of success ... this is my third year into farming ... [but the banks] are demanding proof of ownership of property like a house and a car, which I don't have," he told IRIN.

Most of the farmers who benefited from the compulsory acquisition of land from about 4,000 white farmers have not received the promised 99-year leases that can be used as collateral to guarantee bank loans.

"The process of giving farmers leases is complicated, because it cannot be done without the land being properly surveyed, and that requires money and manpower that the government does not have," Renson Gasela, former agricultural secretary of the opposition party, Movement for Democratic Change, told IRIN. "The situation has been made worse by the fact that most of the farms have been subdivided into small plots, and providing title deeds for them might be a headache."

Agricultural analyst Sam Moyo said new farmers lacked sufficient knowledge of how to apply for loans, while the banks "lack the capacity to deal with the increased numbers of new farmers".

"Apparently, these banks have scaled down on loaning out to farmers since the new farmers came on board," he told IRIN.

Makuyana, who grows maize and groundnuts, said the combination of last year's poor harvests, despite good rains during the farming season, and the withdrawal of free inputs this year might force him to reduce his target by half.

He has struggled to feed his family. "I am yet to repay the government for the inputs I received last year because I did not realise much money from the sale of my produce owing to poor harvests," said Makuyana. "I used the little money that I got to buy an extra beast for draught power, because the District Development Fund (DDF) is no longer assisting us with tractors."

The DDF provides technical support to farmers, but more than half its fleet has been grounded because the government does not have sufficient funds to purchase spare parts and fuel.

Zimbabwe's government insists that about 1.8 million tonnes of maize were harvested - just short of the annual cereal requirement - but independent analysts estimate that 800,000 tonnes at most were produced.

Agriculture minister Joseph Made has said Zimbabwe was importing grain to boost national reserves.

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