Small farmers’ groups to benefit from $220M loan facility
– as Agri. Ministry lends support to vulnerable non-traditional farmers
SMALL farmers’ groups will now benefit from a special three-year financial facility of some $220M, comprising $180M in grants and $40M in low interest loans.
Agriculture Minister Robert Persaud stressed that no farmer must remain small; rather he must be supported to grow.
“We will be working with farmers who are serious…this is the first step to opening many doors and opportunities…we want you to grow,” he said.
Persaud was speaking to a gathering of stakeholders at the Regency Suites Hotel yesterday, when the special financial facility was announced.
Under the Rural Enterprise and Agriculture Development (READ) Project which recently established the Enterprise Development Fund (EDF), through which the support to small farmers is being provided.
The EDF will be administered by the Institute of Private Enterprise Development (IPED).
The support will be extended to farmers in Regions Two (Pomeroon/ Supenaam), Three (Essequibo Islands/ West Demerara), Four (Demerara/ Mahaica), Five (Mahaica/ Berbice), Six (East Berbice/ Corentyne) and Ten (Upper Demerara/ Berbice).
The EDF is expected to cover the majority of the processing costs of grants, with farmers only paying two per cent. The loans are expected to be repaid at six per cent.
Persaud said his Ministry, with support from READ, will work with famers’ groups to access the financing.
READ is expected to work with groups to develop their enterprises and create linkages with markets, but groups are expected also to demonstrate their abilities to build on these interventions. Once such ability is proven, groups will be supported to develop their business plans, which will be evaluated by the Agriculture Ministry. Groups with sound plans will be recommended to IPED for consideration.
Once approved, the farmers’ groups will receive holistic technical support, including organisational strengthening and market and enterprise development.
Persaud made it clear that the group performance will be insisted upon by his Ministry and reiterated that this initiative is to support “serious farmers” who want to grow.
He stressed that the financial support is expected to assist farmers in addressing their challenges, as well as pushing them to become entrepreneurs.

Financing Challenge

The Minister acknowledged that financing has been and still is a challenge, but noted the current administration’s recognition of this through the provision of this special window for small farmers.
Persaud said globally the need for agriculture financing is billions, a need that is not fully met.

“For too long has financing (for agriculture) been a bugbear,” he said. “We continue to look at windows for financing.”
A source of support to address the financing challenge, Persaud said, lies right within the Caribbean Region.
According to him, the Region imports some $4B in food, rather than support inter-regional exports.
“If the region is serious about agriculture, it must invest in agriculture…it must be supportive of the regional agriculture drive, in which Guyana is a lead player,” Persaud said.
With improved financial support, he said the small farmers in particular will be able to bring their productive activities in line with the innovations of the 21st century.
The Minister stated that the agriculture sector is going through a period of transformation; and the initiatives, like the financial facility, are expected to support the transformation with the ultimate goal of prosperity for the Guyanese people.
“Guyana is at a take-off point…we must make this happen,” Persaud posited.
He assured that the process of getting the financing to the famers will be a transparent one, and noted that IPED was selected as the fund’s administrator through a competitive bidding process.
Chief Executive Officer of IPED, Ramesh Persaud, opined that the EDF will transform agriculture.
He stated that, currently, 45 per cent of IPED’s portfolio is within the agriculture sector, with support being given to some 2,000 small and micro-farmers.
The first of the EDF’s beneficiaries include the Pomeroon Women’s Agro-Processor’s Association; the Parika, Nayamryck, Ruby Farmers’ Progressive Organisation; the Garden of Eden Farmers from Good Success; the West Berbice Sheep and Goat Farmers Association; and the Young Women’s Christian Association in West Berbice.
The beneficiaries agree that the support will allow both capital expenditures to both improve infrastructure, as well as expand their operations.