Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

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2016 agric season hectic, challenging

2016 agric season hectic, challenging
Government is expecting the livestock sector to recover while the tobacco sector is set to continue its impressive growth

Government is expecting the livestock sector to recover while the tobacco sector is set to continue its impressive growth

Elita Chikwati Senior Agric Reporter—

The 2016 agricultural season will go down in history as a hectic and difficult one.The sector continued to reel from the negative effects of the El-Nino induced drought that affected most parts of the country.It was a year of food shortages and high livestock deaths, leading Government to intervene through programmes to boost national food reserves.

Chief among the mitigating programmes were the command agriculture, the Presidential Inputs Scheme and improvement in the payment of grain deliveries to the Grain Marketing Board.

The tobacco sector remained resilient in the face of the tribulations in the agricultural sector, with farmers selling 202 million kilogrammes of the crop.

The tobacco sold during the year was worth nearly $600 million, despite the devastating drought which saw some farmers turning to irrigation using the little water available.

Command Agriculture

Government this year scaled up maize production following two successive droughts which drained the fiscus through grain importation.

Command Agriculture was the effort by Government to provide cover for the national grain strategic reserves, as it is expected to increase production.

This is a special maize production programme to boost national food reserves and substitute imports.

The programme aims at producing two million tonnes of maize under 400 000 hectares.

Under Command Agriculture, at least 33 931 farmers were contracted and have so far received 76 percent of their maize seed supply, 38 percent of compound D, three percent of lime and 20 percent of fuel as at December 6.

More than 135 260ha have been tilled under the programme, with 33 932 of them being put under maize.

Of the $160 million that had been mobilised by Government, $85,5 million went towards irrigable land and $75 million was used on dry land.

To sustain the programme’s implementation on a revolving basis, beneficiaries will be monitored to ensure they produce in line with their contractual obligations.

But the programme has not been spared from the liquidity crunch, which has resulted in input manufacturers and suppliers failing to mobilise raw materials.

For instance, the fertiliser industry, though being one of the top priorities for foreign currency access, has been hit hard by the shortages.

The companies had challenges accessing foreign currency to buy raw materials.

This resulted in delays in the manufacturing of fertilisers, with farmers failing to access the inputs in time for the season.

Farmers were forced to queue for the fertilisers instead of being productive on the farm.

Compound D fertilisers production was also affected by the foreign currency shortages.

Farmers under Command Agriculture have also been complaining of shortages of pre-planting herbicides.

There are fears that this may compromise yields.

Some farmers are beginning to panic as they may not get the targeted five tonnes per hectare.

According to some agriculture experts, Command Agriculture is a noble initiative, but there is need for timeous distribution of inputs.

They say inputs should be made available at least by August.

Fall army worm, a new pest, is threatening the bulk of the irrigated maize crop.

Government, through the Division of Plant Protection Institute, is assisting farmers with chemicals and advice on how to control the pest.

In areas such as Hwange, the pest was said to be resistant to carbaryl pesticide.

The Command Agriculture programme saw farmers go into the season with high hopes

The Command Agriculture programme saw farmers go into the season with high hopes

But agricultural experts noted that some farmers were not spraying timely, while others were not carrying out the control operation correctly.

They called on farmers to spray the pest before the crop reached knee stage for easier control, while advising them to seek advice from extension officers.

According to the experts, maize can recover after an attack though early control is required.

Presidential Inputs Support Scheme

In 2016, the Presidential Inputs Scheme, was once again the lifeline for many farmers.

The programme is the biggest in terms of supporting households in the rural areas to ensure food security at the local level.

The programme is benefiting 800 000 households across Zimbabwe.

Under the programme, communal farmers received maize seed and fertilisers, while farmers in dry areas get small grains seed.

Cotton

Government increased cotton inputs support from a quarter hectare in 2015 to one hectare in 2016.

Cotton inputs are being administered by Cottco.

Farmers now receive two bags of top dressing fertilisers in high rainfall areas.

The farmers also received one bag of Compound D to double the amount and three bags of lime.

Cotton production is important to Government for sustaining livelihoods.

A significant number of small scale commercial and communal farmers in the drier regions also benefit from cotton production.

The crop also contributes to export earnings and economic growth.

Cotton production had been declining due to high production costs against low producer prices.

This led to collapse in production, with decline in cotton output to 30 000 tonnes in 2016, from 84 000 tonnes in 2015 and 143 000 tonnes in 2014.

Government, availed $42 million worth of cotton inputs in support of 400 000 communal cotton farmers to boost cotton production during the 2016 /17 season.

The support comprised of 20kgs of seed, two bags of basal and a bag of top dressing fertiliser, pesticides and herbicides.

Payment on grain deliveries

The year under review saw a significant improvement in the payment to farmers for grain deliveries to the Grain Marketing Board.

This resulted in farmers increasing deliveries to the GMB.

Farmers were shunning the GMB, preferring to sell their grain to private traders who paid in cash.

Although the GMB price of $390 per tonne was attractive, farmers would prefer selling their crop to middlemen for less money as long as they were given instant cash.

The release of funds to the GMB by Treasury saw farmers delivering 207 000 tonnes of maize.

Most farmers feel that if the trend of early payments continues they will continue producing maize at a commercial scale.

Tobacco

The tobacco industry has remained firm despite the economic challenges being faced in Zimbabwe.

It was a season not very easy for most of the farmers, characterised by low or very erratic rainfall, which came late, and difficulties in accessing cash.

The 2016 tobacco marketing season was delayed by more than three weeks due to the late onset of the rains.

This resulted in delays in the planting of the main dry-land crop.

Tobacco sales realised $595 927 523 in 2016, which is two percent higher compared to the 2015 total sales value.

The 2016 marketing season progressed smoothly and quietly, regardless of the newly introduced system of paying growers through bank accounts as opposed to cash payments.

Some farmers had challenges during the first days, but embraced the use of plastic money as the season progressed.

The Tobacco Industry and Marketing Board delayed introducing the electronic marketing platform.

The electronic system was meant to improve efficiency in the marketing of the golden leaf.

It was supposed to run side-by-side with the traditional system during this past season, but it could not be done due to the introduction of the direct bank payment system.

The system is expected to be operational in 2017.

Tobacco Levy

Tobacco growers continue to complain over the non-disbursement of the $14 million which they contributed as the Tobacco Levy.

The farmers also called on Finance and Economic Development Minister Patrick Chinamasa to scrap the fee.

When the levy was reintroduced, Minister Chinamasa said it would go towards conservation programmes.

Government reintroduced a 1,5 percent tobacco levy on sales by growers in 2015 to finance reforestation activities.

The money was supposed to go towards training and awareness campaigns.

Since January 2015, TIMB has imposed a levy on tobacco growers at the rate of $0,15 of each dollar of the selling price.

During the 2016 season, the levy was reduced to 0,75 percent.

Export Facility Incentive

The RBZ pledged to motivate tobacco growers who sold their crop during the 2016 selling season.

The farmers would receive a cumulative $30 million as export incentives by end of November when bond notes were introduced.

The five percent export incentive was meant to motivate tobacco farmers in their efforts to generate the much needed foreign currency.

The farmers were expected to start receiving the money when bond notes were introduced at the end of November, but were yet to get their money as at December 23.

Some farmers had already made plans for the money, with others planning to use the money to manage their crop.

The Meteorological Services Department forecast normal to above normal rains for the 2016/2017 season and this encouraged many farmers to work hard.

Most farmers are optimistic that they will get meaningful harvests and that the condition of their livestock will improve during 2017.

 

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