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125 000 farmers target command, contract farming

03 Dec, 2018 - 10:12 0 Views
125 000 farmers target command, contract farming Wonder Chabikwa

eBusiness Weekly

Kudakwashe Mhundwa
HARARE – Over 125 000 farmers are targeting to be part of command and contract farming schemes this summer cropping as self-financing  farming business continues to be under threat due to soaring input prices.

This comes at a time when inputs prices have soared by over 300 percent in the past week.

Though Government has intervened to slash inputs prices by 50 percent last month, farmers are increasing turning to contract farming where all inputs are given at reasonable price.

Some companies like Cairns and National Foods among others are moving to help the farmers who were left in the command scheme.

Zimbabwe Commercial Farmers Union (ZCFU) president Wonder Chabikwa said contract farming is the way to go due to provision of inputs and stabilised pricing structure.

“According to our statistics, 112 235 farmers have registered to be contracted under Command Agriculture Scheme to grow over 230 000 hectares of both maize and soyabean. With close to 12 500 farmers in contract farming with  large companies such as Pure Oil Industries, National Foods and Cairns among other companies.

“The increase in contract farming numbers this year is a result of high input prices which are beyond the reach of many, therefore companies secure fertilisers and seeds at reasonable prices from both local and international producers.

“Naturally, people don’t like contract schemes due to  their terms and conditions but given the proposed slash of price to $50 per 10 kg of seed maize and $60 per 50kg of  fertiliser, self-financing farming is still unsustainable hence people will join  these schemes to get inputs,” said Chabikwa.

Zimbabwe has become food self-sufficiency due to command agriculture which was launched two years ago.

In the last two years Zimbabwe has managed a combined output of 3,8 million maize output against a demand of 3,6 million.

This year, government has contracted over 200 000 hectares of maize and 33 000 hectares of soyabean under Command Agriculture to be self-sufficiency and reduce import bill.

Launched two seasons ago, Command Agriculture, which has been expanded to include soyabean, fisheries and livestock, continue to increase productivity across subsectors of agriculture.

Under Command Agriculture, inputs such as fertilisers and seed are procured by private investors and availed to farmers.

The debt is guaranteed by the government.

When farmers sell their produce through stop order payment with part of the proceeds used to pay the debt.

Meanwhile, most farmers have started receiving inputs under the Presidential Input Support Scheme and Command Agriculture scheme for 2018/ 20-2019 summer cropping season, with almost all farmers receiving seed and diesel. 

Under the Presidential Input Support Scheme each household got 10kg of maize seed, 50kg of basal fertiliser (Compound D) and 50kg of top dressing (Ammonium Nitrate). 

The package comes after Government has set aside $200 million for the Presidential Input Support Scheme for1,8 million  communal households across the country. 

Under the Specialised Import Substitution Programme known as the Command Agriculture Scheme, Government has set aside   $400 million under the programme with around 200 000 people expected to register under all the specialised programmes.

This is in pursuit of the objectives of the food nutrition and security cluster espoused in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zimasset).

Government expects farmers under Command to have received inputs, including some top dressing fertilisers, by mid-November.

Authorities have since allowed those corporates and individuals with free funds to import fertiliser and chemicals to reduce pressure on RBZ for foreign currency.

Sakunda Holdings remains the major financier of the Command Agriculture programme with CBZ, Ecobank, National Foods Limited, Homelink and Northern Farming also joining the party

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