Image Credits: blog.extension.uga.edu, The Herald Zimbabwe

by Regina Pasipanodya

The Government of Zimbabwe has introduced new funding conditions for Command Agriculture that require farmers to approach banks for support in grain production during the 2019-20 summer cropping season.
According to the government, the move will help the farmers to boost production and do away with unscrupulous business people who used to abuse inputs under Command Agriculture.
The government has entered into partnerships with Agribank, CBZ, Stanbic and Women’s Bank to manage and disburse funds for the programme.

Image Credit: The Herald Zimbabwe

These banks shall support A1, A2 and other large-scale farmers into soya-bean and maize production.
Zimbabwe Commercial Farmers Union (ZCFU) president Mr. Wonder Chabikwa yesterday said farmers welcomed the new conditions as Government has guaranteed the availability of the loans.
He said the facility would benefit “real farmers” who are hardworking while boosting the sustainability of agricultural funding.
“Real farmers farm for-profit and pay back loans. When all things are normal farmers pay back loans as they will want to continue benefiting from the facility. By accessing loans through the banks, cases of people abusing inputs will be limited,” he said.
Mr. Chabikwa said some farmers were afraid of the risk associated with bank loans.
He said some years back, farmers lost properties to banks after failing to pay back loans.
“Some farmers are afraid of applying for bank loans because of the background relations they had with the financial institutions.
“On Command Agriculture, farmers had some protection especially when yields were affected by natural disasters such as drought or hailstorm,” he said.
The tenure of the loans is 270 days at an interest rate of 10,5 percent per annum and an upfront fee of 2,25 percent