Stakeholders slam agric budget allocation criticised
http://www.theindependent.co.zw/
Thursday, 02 December 2010 17:55
TREASURY’S allocation of US$122 million to agriculture is grossly inadequate
for a sector that is expected to spur economic growth after a decade of
stagnation, agricultural analysts have said.
To make matters worse, the analysts said there was no specific funding for
A2 commercial farmers.
Finance minister Tendai Biti last week proposed a vote of US$122 million in next year’s national budget, of which $41 million was set aside for the ministry’s capital expenditure,
with $11,8 million earmarked for rehabilitation and expansion of 63
irrigation schemes nationwide.
Commercial Farmers Union president Deon Theron said the budget allocation
was insufficient for the sector’s needs, particularly when one looks at
previous allocations to agriculture.
“The funding is largely inadequate if one considers that the country’s
economy is agriculture-based. It will not be enough to restore production to
its full potential,” Theron said.
He added that: “Agriculture is capital-intensive and the current liquidity
crunch will make it very difficult for commercial farmers to perform at
their full capacity.”
“It therefore follows that Treasury could have made more resources
available. Without that it is going to be pretty difficult to let
agriculture reach its full potential.”
Zimbabwe Farmers Union president Silas Hungwe concurred, saying farmers
needed more support if the goal of food security is to be attained.
“The budget allocation is not enough. There are lots of areas that need to
be covered in the sector. If not covered the expectation of food security
will remain a pipe dream,” Hungwe said.
He added that the manufacturing industry recovery is dependent on the
turnaround of the agriculture sector.
“If agriculture is expected to play a major role in the turnaround of the
economy it needs a lot of support. Industry can only be revived if farming
improves,” Hungwe said.
Agricultural Marketing Authority (AMA) chairman Basil Nyabadza said the
budget sent a clear signal that commercial farmers were on their own now and
have to look for alternative funding if the sector is to be restored to its
former glorified position.
“A2 have been cut loose from the treasury umbilical cord. This marks the
birth of the new farmer who took over Mr Jones’ farm. We have now to look at
in-house solutions to farmers’ financing needs,” Nyabadza said.
He added that: “As AMA, we have started looking at comprehensive ways of
funding agriculture on a permanent basis. Agriculture should look at
alternative ways than continued reliance on Treasury. We need a revolving
fund outside Treasury to spur agricultural production once more.”
Commercial farmer and Muzarabani South legislator Edward Raradza agreed with
Nyabadza. “Agriculture is the backbone of the economy. As such it should
have been prioritised as a stimulus to the economy,” he said.
Biti, in his budget statement, alluded to the fact that agriculture funding
could not be left in the hands of government alone.
“Government’s capacity to fully provide the resource requirements for the
sector on its own is limited and, hence, invited other private sector
players to complement its efforts,” Biti said.
In the 2011 financial year, the government has sourced loans from financial
institutions for A2 farmers amounting to over US$350 million.
The funding among other things will cater for tobacco production (US$158,9
million), cotton, soya and horticulture will receive a combined US$49,7
million and lending to individual farmers totals US$71,9 million.
Biti however said successful private funding of agriculture would depend on
resolving the land tenure question under the agrarian reforms.
“The issue of the security of tenure is critical. Whatever tenure system is
chosen, it must surely provide for security, must be registrable, executable
and must be transferable,” the minister said.
Paidamoyo Muzulu