Zimbabwe: Agricultural Strides in 2007

Source from:  The Herald (Harare) 1 January 2008 01/03/2008

ZIMBABWE successfully completed the land reform exercise but productivity remained low due to such factors as recurrent droughts, shortage of inputs and farming implements. Despite these setbacks, the year 2007 suddenly turned into a watershed for agriculture production as Government launched various initiatives to kick-start the agricultural sector and restore viability in the country's agro-based economy. The initiatives have seen the Government, the Reserve Bank of Zimbabwe and the private sector investing heavily in the acquisition of farm machinery and inputs aimed at promoting massive agricultural production. At the beginning of the year, the Government, through the central bank, embarked on a massive agricultural mechanisation programme while constantly reviewing producer prices of such crops as maize, wheat, tobacco, cotton and small grains. This was after realising that agriculture was not only the backbone of the country's economy but was a critical factor to reduce the current high inflation levels. Thousands of farmers have since benefited from the farm mechanisation programme and have, in turn, vowed to increase agricultural output for the 2007/08 season. In a bid to equip indigenous farmers, Government launched the programme with a target to build a fleet of at least 50 000 small-to-medium sized horsepower tractors and equipment in a programme expected to run until the year 2010. The RBZ also embarked on a drive to create jobs through a massive project to set up institutions throughout the country that manufacture animal-drawn farming implements. The central bank engaged firms, including SMEs, to produce 700 000 ox-drawn farming implements. The Farm Mechanisation Programme began when the Government in June distributed agriculture equipment worth US$25 million in a move that also received support from the opposition MDC, some of whose top officials also benefiting from the programme. President Mugabe, in November while launching the second phase of the Farm Mechanisation Programme called on all farmers to end food shortages through massive agricultural production. He called on the opposition to work with the Government in turning around the country's economic fortunes through agriculture production. The mechanisation programme has so far seen the distribution of 356 000 units of farm equipment such as scotchcarts, ploughs, cultivators, harrows, planters and chains, among others. The programme has seen 5 138 units of machinery equipment and implements that included 2 125 tractors, 85 combine harvesters, 1 263 disc harrows, 1 386 ploughs, boom sprayers, spreaders and planters. Government's positive efforts were, however, blighted by reports of the unearthing of a massive tractor scandal at Arda although the authority revealed that they had identified the tractors and would recoup the cost by hiring them out at prevailing market rates. The Government during the year also continued to work hard to enhance agriculture production by sourcing and distributing inputs such as fertilizer and seed to farmers, especially A1 and communal farmers. It, however, weaned off A2 farmers from getting inputs on the realisation that after getting Government assistance over the years, it was time they started operating as businesses and acquired their own inputs. They were, however, advised to buy inputs from the GMB at gazetted prices. The agriculture sector received a further boost following the approval of a US$10 million loan facility advancement from the PTA Bank, which caters for exporters taking into account the need to bolster foreign currency inflows into the country. During the year under review, the agriculture sector continued to be boosted through Government programmes with the GMB constantly reviewing producer prices of crops such as cotton, maize, soyabeans, sugar beans, wheat and tobacco. At the end of the winter agriculture season Government announced a bonus producer price for wheat and barley farmers with farmers getting a bonus of $29,25 million for a tonne of wheat or barley. Seed producers of both crops also received a bonus of $35,1 million per tonne. The bonuses announced by Government also boosted earnings for wheat and barley farmers who were already being paid $42 million per tonne for both crops. The maize producer prices were also constantly reviewed in tandem with the inflationary environment from $4,2 million in May to $10 million in November this year. The RBZ was already paying a backdated $5,8 million for farmers who delivered their produce during the period between April 1 and September 30. Enditem