The Sunday Mail
Livingstone Marufu
Farmers are increasingly turning to contract farming and joint ventures for inputs and equipment at lower interest rates as compared to banks. For years, farmers have been stalked by financing problems, but the enactment of Joint Venture Act in May this year has seen companies like National Foods and Cairns partnering growers to improve productivity.Commercial banks extend lending at interest rates of between 15 and 20 percent per annum, which many farmers find prohibitive. Agriculture, Mechanisation and Irrigation Development (Crop Production) Deputy Minister Davis Marapira said, “We are happy with the way contractors and joint ventures are helping farmers to increase productivity. As we speak, we have 100 000 hectares of cereals and tobacco under contract farming.
“We also have another joint venture of Agricultural and Rural Development Authority and private farmers across the country that are financing cereal under 50 000 hectares.”
Recently, the Grain Millers Association of Zimbabwe and its partners invested US$3 million in winter wheat at Lion’s Den in Chinhoyi. GMAZ, Southern Region Trading Company, National Foods and PHI Commodities have also partnered farmers in Makonde to grow 4 000ha of maize.
Also, National Foods has invested US$6 million in contract farming for small-scale farmers. Deputy Minister Marapira went on, “John Deere, an American company that manufactures diesel engines and agricultural equipment, has invested US$3 million in equipment. They offer affordable interest rates that range from five to eight percent which are way below our banks’ rates.”
Deputy Minister Marapira said centre pivot manufacturers were courting farmers to purchase irrigation equipment at low interest rates. The first phase of the Brazil More Food for Africa Programme has seen over 64 irrigation schemes being installed, and the Agriculture Ministry next plans to add another 60 schemes for small-scale farmers. The US$98 million facility assists small-scale farmers to mitigate the effects of drought and boost food security.
