THE United Nations Food and Agriculture Organisation (FAO) has found that if farmers are to increase food production and food security, they need better access to agricultural support systems, including credit, technology, extension services and agricultural education, as well as, to the rural organisations that often channel other services.
It said that both men and women smallholders and poor farmers have frequently been cut off from these essential agricultural support systems, which seldom take into account the different responsibilities and needs of men and women farmers.
In spite of their enormous potential and their crucial roles in agricultural production, women in particular have insufficient access to production inputs and support services.
The new support package recently unveiled in Guyana opens a window of opportunity for these small farmers to significantly boost their businesses by increasing production and their marketing capacity.
Expansion of their businesses will not only bring significant benefits to farmers but would also boost agricultural production and help the national economy.
Agriculture Minister Robert Persaud said vulnerable small farmers, through small farmers’groups, will benefit from a special three-year financial facility of some $220M, comprising $180M in grants and $40M in low interest loans.
This will come through 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) which has a proven track record of helping small entrepreneurs.
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.
According to Mr. Persaud, his ministry, with support from READ, will work with farmers’ 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.
This new aid package for farmers is another commendable move to help them grow and is clearly in keeping with the government’s expressed determination to strengthen this major sector of the economy.
There are many small farmers who would like to expand and diversify their businesses and they now have a better opportunity to do so.
We have no doubt that this package will impact positively on farming activities and encourage others to get into agricultural production as Guyana has an enormous potential in this sector.