Farmers who did not sell their maize to the Grain Marketing Board (GMB) or those that default on repayment of loans advanced to the them under the National Enhanced Agriculture Productivity Scheme (NEAPS), commonly known as Command Agriculture, risk having their offer letters revoked.
Further, they will not be considered for the facility
during the 2021-22 season.
Command Agriculture was initiated in 2016 to ensure
national food security, accelerate import substitution, create employment and
improve incomes and livelihoods.
Lands, Agriculture, Fisheries, Water and Rural Resettlement
Minister Dr Anxious Masuka said contract arrangements for the 2021/2022 season
were being strengthened to deter side-marketing, non-performance and
under-performance.
“Farmers who have fully paid their debts will be
immediately enrolled for the 2021/2022 season,” he said on Friday.
“Farmers with outstanding debts will not be enrolled for
the 2021/2022 season until they have made an immediate payment of at least 50
percent of the 2020/21 summer season total loan amount by September 31, 2021.”
Minister Masuka said farmers who would have made a
repayment of at least 80 percent for the 2020/21 summer season total loan
amount by November 30, will be considered.
Also to benefit from the facility during the forthcoming
season will be those who signed a commitment with an asset pledge to pay the
programme in full before the onset of 2021/2022 season.
“For the avoidance of doubt, banks that lend to farmers who
have not fulfilled the above, will be liable for any defaults.
“Additional measures will be taken and all national payment
platforms will be activated to ensure repayments by defaulting farmers,
including submission of names to the Financial Clearing Bureau.
“The Minister reserves the right to revoke offer letters
for farmers who use their offer letters to the detriment of
Government-supported programmes, including an intentional failure to settle
loans,” said Minister Masuka.
More than 15 000 farmers benefit from this NEAPS annually,
while over 2,3 million small-holder farmers benefit from social protection
schemes annually.
Minister Masuka said Government would continue to implement
the two-pronged approach in financing agricultural activities, with the fiscus
focusing on supporting vulnerable households with inputs under the Productive
Social Protection Scheme (Presidential Inputs Scheme), while the private sector
is provided with an appropriate environment to finance commercial activities,
including guarantees, where necessary.
He said the success of NEAPS was pivotal for sustainable
financing of the agricultural sector.
“The success of NEAPS is dependent on repayment of loans by
farmers, avoidance of side-marketing, and restoration of financial discipline
and ethical conduct in the conduct of business by all stakeholders in the
agricultural value chain.
“Unfortunately, some farmers have ignored these SIs and
have gone ahead and side-marketed their crops prejudicing contractors and
jeopardising repayments to banks that funded the NEAPS,” he said.
Minister Masuka urged farmers not to jeopardise
agricultural transformation by not paying back loans.
NEAPS is backed by a Government guarantee to banks that
raise capital to lend to farmers to enhance local agricultural production
through concessionary loans.
“Government has assisted to ensure NEAPS is well funded
with the ultimate goal of converting repayments from recoveries into a
revolving fund. This allows current and new farmers to continue Herald
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