Diversified economy, more jobs, increased income for farmers expected
Brighter days are ahead for farmers, said Minister of Public Infrastructure, Juan Edghill, who presented Budget 2020 to the National Assembly on Wednesday
Brighter days are ahead for farmers, said Minister of Public Infrastructure, Juan Edghill, who presented Budget 2020 to the National Assembly on Wednesday

— as gov’t pumps $18.4 billion into agriculture

By Navendra Seoraj
GOVERNMENT, over the next five years, will be looking to implement measures in the agriculture sector, geared at diversifying the economy, creating more jobs and increasing the income of farmers.

Agriculture accounts for more than 20 per cent of Guyana’s real Gross Domestic Product (GDP), but Minister of Public Infrastructure, Juan Edghill, who presented Budget 2020 to the National Assembly, said there is a vast ‘unrealised’ potential for this sector.

“However, due to the policies of the previous administration, this could not have been realised. Over the next five years, starting from Budget 2020, we will implement measures to promote a diversified economy, create more jobs and increase the income of farmers at the same time, through strategic investments, and ease the burden associated with the COVID-19 pandemic,” said Minister Edghill, adding that for these interventions, the agriculture sector was allocated $18.4 billion in 2020.
COVID-19 has affected the demand for and supply of agricultural produce, which, in turn, has significantly reduced the income of farmers.
To provide relief to “struggling farmers”, government has reversed land lease fees, land taxes and drainage and irrigation fees to 2014 rates.
Government has also removed Value Added Tax (VAT) on fertilisers, agro-chemicals and pesticides.
Further, the National Agricultural Research and Extension Institute (NAREI) in a quest to reduce the cost of inputs and at the same time promote climate-smart agriculture, will expend $15.8 million for the acquisition of shade house materials and sprinkler hoses. NAREI will sell the materials to farmers at cost price, saving farmers over 33 per cent ($5 million).

According to the minister, earnings from this investment will be utilised as a revolving fund for future purchases of required materials for farmers.
“We will continue to promote agricultural diversification with a focus on coconut, and horticulture by engaging NAREI and Hope Coconut Estate. The coconut industry will be given prominence by promoting expansion in acreages, inter-cropping, utilisation of coconut by-products, and increasing production and productivity,” said Edghill.

In 2020, to increase access and reduce the cost of coconut planting material, government will establish two coconut nurseries, at Charity on the Essequibo Coast and Kairuni on the Soesdyke-Linden Highway, with the capacity to produce 25,000 additional seedlings per year. In addition to NAREI and Hope Estate providing planting materials, farmers will receive training on how to establish their own nurseries.

Minister Edghill assured that government will actively promote crop diversification and create incentives for farmers to invest in non-traditional crops, such as corns and soybeans.

“We will also promote value-added activities as well as the export of produce, to ensure our agriculture sector continues to expand and farmers are able realise higher incomes. To this end, this budget will introduce tax concessions on investment in agro-processing facilities, cold storage and packaging,” said the minister, adding that the new administration will work to guarantee Guyana’s food security, as well as that of the country’s CARICOM brothers and sisters.

DRAINAGE AND IRRIGATION
A core component in providing an enabling environment for agricultural development is to provide better drainage and irrigation infrastructure.
“Due to the fact that the majority of our population and agriculture activity is concentrated on the low coastal plain, and the increasing incidence of overtopping due to sea-level rise and excess rainfall, heavy expenditure is being made to address the deficiencies in our D&I systems and to manage water in a structured manner,” said Minister Edghill, noting that it is to this end that government budgeted over $9 billion drainage and irrigation infrastructure.
Over 1,200 acres of farmland in West Watooka, Linden will benefit from drainage and irrigation work, in 2020. Further, the country’s drainage capacity will be bolstered this year with the installation of 12 high-capacity drainage pumps for Regions Two, Three, Four, Five and Six.
Additionally, government has committed to commencing plans for the design of pump stations at Cottage, Adventure, and Andrew, as well as the design of farm-to-market roads, with the intention of upgrading the existing mud dam access to farm-to-market access roads.

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