Drought dampened agric prospects in 2019

29 Dec, 2019 - 00:12 0 Views

The Sunday Mail

Agriculture Lincoln Towindo

The SADC region recorded the lowest rainfall in nearly four decades during the 2018-2019 summer cropping season, spawning historically low agriculture yields in the region, particularly Zimbabwe.

Farmers dependent on rain-fed agriculture had their crop nearly wiped out by a debilitating mid-season dry spell.

According to the SADC Food Security Early Warning System Agromet: “Many parts of southern Angola, northern and southern Botswana, northern Namibia, north-western South Africa, southern and western Zambia and north-western Zimbabwe received their lowest seasonal (October-March) rainfall totals since 1981.”

The development also threw into disarray Government’s plans to revive the agriculture sector which, along with mining, is at the backbone of the local economy.

Production

Both food crops and cash crops were affected almost in equal measure, but tobacco yields grew, albeit marginally.

Grain production was adversely affected during the last cropping season with the country’s farmers managing just under 800 000 tonnes of grain, against a national grain requirement of 1,8 million tonnes.

The previous season, farmers produced 1,7 million tonnes of maize while in 2017, around two million tonnes of the staple grain was produced.

Owing to the poor yield, Government is now importing grain to cover for the massive shortfall, a development that is unkind to Treasury which is already grappling with access to foreign currency.

Government has, however, assured the nation that no one will starve.

Production of small grains also dipped in spite of encouragement by authorities for farmers to ramp up their production as they are more tolerant to severe weather  conditions.

According to the Tobacco Industry and Marketing Board (TIMB), tobacco output surpassed the previous season’s record-breaking output of 252 million kg, despite the crop being grown under drought conditions.

Tobacco farmers managed another record-breaking feat by delivering 259,5 million kilogrammes of the golden leaf.

Overall earnings from the crop, however, slumped to US$530 million from US$737 million a year ago owing to subdued prices.

The average price at tobacco auction floors this year was lower by about 31 percent compared to those of the previous year, according to TIMB.

Livestock

The national heard also suffered a massive hit in 2019 due to a combination of diseases and starvation.

Tick-borne diseases accounted for thousands of cattle deaths countrywide as farmers and authorities struggled to contain the outbreak.

At the beginning of this year, Theileriosis, or January disease — a tick-borne infection — had claimed 50 000 cattle.

The outbreak curtailed Government’s drive to replenish the national cattle herd and efforts to boost both the dairy and beef industry.

Foreign currency shortages hindered authorities’ capacity to import dipping chemicals, thereby worsening the scourge.

Through the Transitional Stabilisation Programme (TSP), Government plans to inject $63 million to revive beef cattle production, of which $32 million will be for restocking.

Farmers in areas such as Matabeleland North and South, and southern parts of Manicaland, Masvingo and Midlands, will be provided with heifers for restocking.

Land Audit

The Zimbabwe Land Commission audited over 56 000 farms in eight provinces under the second phase of the National Agricultural Land Audit.

A probe by the ZLC in eight districts between July and August covered over 38 000 farms adding to the 18 000 that were covered during the initial phase.

Last year, President Emmerson Mnangagwa ordered an expeditious completion of the land audit saying Government would repossess idle farms for redistribution and downsize farms considered too large.

The initial phase of the audit covered 18 000 farms unearthed widespread cases of fraudulent land allocations, rampant illegal leasing of land parcels and gross underutilisation of the resource by some farmers.

The probe also concluded that there was pervasive allocation of land by different allocating authorities within Government, resulting in internecine farm disputes while there were extensive challenges around change of ownership in cases where a deceased farmer had no will. The commission concluded that there was gross underfunding of agriculture and recommended that Government establishes a Land and Agriculture Bank to facilitate funding for resettled farmers.

The ZLC also recommended the setting up of an Integrated Land Information Management System (LIMS) that promotes good governance, transparency, accountability and fairness in land distribution and management.

From Command to Smart Agriculture

Government also transitioned from the Command Agriculture programme to Smart Agriculture scheme, which is funded exclusively by private financial institutions.

During the year, Government partnered Agribank, CBZ, Stanbic and the Zimbabwe Women’s Bank to manage and disburse funds for the programme under a new financing model being backed by the private sector.

Government is guaranteeing the loans which have a 270-day tenure at interest rates of 10,5 percent per annum, while an upfront fee of 2,25 percent is also being charged.

A $3,6 billion kitty was set aside by Treasury for agriculture with $2,8 billion going towards maize and soya- bean production and is being administered by the banks.

Farmers are not required to provide collateral since verification is being done by the Ministry of Lands, Agriculture, Water and Rural Resettlement.

Inputs are being supplied through an electronic voucher system administered through the bank with the inputs being provided at district level through suppliers, stockists and agents.

Repayments will be deducted as farmers deliver grain to the Grain Marketing Board.

Irrigation Development

During the year, Government also moved to implement the National Accelerated Irrigation Rehabilitation Programme.

Under the programme, authorities envisage to put at least 200ha under irrigation in every district over the next 10 years.

Government also unveiled partnerships with private sector players, including Pedstock Investments, to install centre pivot irrigation equipment on farms.

The first phase of the centre pivot irrigation facility was launched at the end of 2016 targeting A2 and institutional farms with 80 centre pivots having been targeted of which 73 are already operational.

With the spectre of more droughts now a reality owing to climate change, irrigation development is being prioritised.

The Department of Irrigation Development, this year, rehabilitated more than 11 000 hectares and developed 750 hectares of irrigation schemes.

Way Forward

2019 was generally a tough year for the agriculture sector with problems ranging from poor crop production, disease outbreaks, shortage of chemicals and high cost of inputs among others.

To add further strain to the sector, the 2019-2020 rainfall forecast has compounded the situation. Experts are predicting another debilitating rain season, characterised by low rainfall patterns.

While the future looks ominous, there remain massive opportunities for growth.

Government predicts the agriculture sector to grow by 5 percent next year given adequate rainfall and irrigation.

To enhance the country’s ability to respond to adverse weather such as droughts, Government, this year, signed an Insurance Policy Agreement with Africa Risk Capacity Limited (ARC Ltd) to access financial resources to help respond to extreme weather events.

Under the agreement, Government will purchase a drought insurance premium of US$1 million, which will unlock a maximum coverage of US$5,3 million.

In addition, Government also signed a Memorandum of Understanding with the World Food Programme (WFP), which will witness the UN agency paying a premium amount of US$200 000 to ARC Ltd unlocking a coverage of US$1 million during the 2019-2020 season.

Government is also ratcheting up the promotion of drought-resistant crops, concentration on short-season varieties and drought-tolerant livestock breeds, in an effort to bolster the sector.

 

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