Govt urges farmers, banks to work together
Lands, Agriculture, Water and Rural Resettlement Minister Dr Anxious Masuka has advised farmers to have a good relationship with banks as Government’s plan to restructure Agribank as a land bank are in order and will be complete in the next two months.
Dr Masuka said Agribank will be responsible for investment support and group landing as the Government intensifies commercialisation of the agriculture sector.
He was speaking at Nyamuseve irrigation scheme in Guruve while touring irrigation schemes and farms in the province on a technical assessment visit.
“We are establishing a land bank. Agribank will become the land bank in the next two months and they will be doing the large part of landing and group landing,” he said.
“In every relationship with a bank farmers have to own their obligation by delivering to GMB. Command Agriculture is a commercial programme run by CBZ where farmer selection is done on the basis of repayment.
“Last year 35 800 farmers produced maize under command, 25 000 repaid loans but only 11 000 fully repaid the loans.
“The bulk of those who did not repay their loans did not even supply their grain to the Grain Marketing Board (GMB). Some were affected by drought and others simply did not do anything.
“The basis of contracting this season was on whether or not one delivered. We want farmers to have a relationship with a bank. Command is a starter pack from the Government because you don’t have collateral. Farmers must repay in order to continue to receive the support.”
Agribank provincial manager Mr Danmore Chitena said they are providing working capital and working with business minded farmers who can sustain their businesses and operate viably.
“The establishment of the land bank is an improvement to the bank and we now have a SPV with equipment including tractors and combine harvesters which farmers can hire.
“The establishment of the land bank is an opportunity for farmers to take farming as a business. The farm mechanisation programme is a deliberate effort by the Government to achieve food security in agriculture.”
