Zambia: ZNFU reacts to government’s agricultural decisions
By Nawa Mutumweno – Farming in Zambia is beset with many factors which lead to high costs of production such as high cost of finance, poor extension services, lack of access to finance and credible agricultural research, fees, levies, numerous taxes, etc.
Government announced the 2012/13 crop forecast results recently against a cloud of uncertainty that a reduction in maize production was eminent due to the early stoppage of the rains, effects of army worms, replanting and late delivery of the Farmer Input Support Programme (FISP) inputs in most parts of the country.
The Agricultural Production Survey estimates carried out by the Zambia National Farmers Union (ZNFU) and subsequently re-validated by the Government crop forecast projected that the country had produced just enough maize for consumption. Furthermore, because of the huge carryover stock, a surplus of about 453 995 metric tonnes was also declared after compiling the food balance sheet.
ZNFU has warned that maize production would decline and the national food security situation put at risk following Government’s plan to wean farmers off the FISP without putting in place new alternative programmes for financing agriculture.
In a statement issued, ZNFU observed that already in the current season maize production declined partly due to poor handling of FISP by Government. Rural households should be supported to engage in productive farming and contribute towards job creation through the multiple effects throughout the value chain.
‘’Providing support to poor rural farmers in form of agricultural inputs is not a subsidy but a mandatory responsibility on the part of Government. To run away from this responsibility without providing an alternative condemns the farmers to untold poverty and misery and puts the agriculture sector as a whole on a dangerous path,’’ the statement reads in part.
The Union has been advocating for crop diversification under FISP and the E-voucher programme would serve farmers better in that farmers engaged in different crops including livestock could redeem E-voucher against inputs of their choice to reduce the cost of production, thus encouraging diversification.
Government also plans to subsidise the 10kg seed pack by 100 percent in order to encourage farmers not to reduce their production of maize while diversifying into other crops. This is a good move in that while sustaining maize production, it will also sensitise farmers on the importance of using certified seed. However, the Union is of the view that Government should consider introducing free seed distribution of many other crops to encourage farmers diversify to other crops.
ZNFU supports Government’s intentions to reduce and subsequently remove subsidies to the agriculture sector only if alternative financing programmes targeting rural poor farmers are in place, such as rural banks where farmers can access agricultural inputs without requirements for collateral as security to loans.
What is simultaneously and urgently required is to put in place bridging measures to avert a food security calamity, and more importantly, to find solutions to the challenges facing poor small-scale farmers in the rural area in order to keep them self-sustaining. An in-depth analysis and full appreciation of what is involved in practicing farming in a rural area where basic social amenities and services are nearly absent and even sophisticated business models flop should have been done, and in full consultation and dialogue with those that such a decisions was going to affect, the Union argued.
‘’The Union holds a passionate view that the agriculture sector must not be run like a corporate entity because of the serious nature of issues entangling the sector such as high levels of poverty, poor markets, food insecurity, and difficult life, generally in rural areas.
Meanwhile, Government has announced that operations of the Food Reserve Agency (FRA) would be restricted to securing strategic reserves in line with the Act, as well as to purchase any excess maize that may remain after private sector participation.
The Union supports the move by Government to limit the maize buying activity of the FRA to securing the national strategic reserve (of about 500 000 metric tonnes for the 2013/14 crop marketing season) in line with its original mandate.
‘’However, ZNFU is of the view that unpredictable Government policy on maize exports will not encourage private sector participation which could improve producer prices as exporters take advantage of the higher maize prices in the export markets. This will not only raise farmers’ incomes but also contribute to poverty reduction,’’ it elaborated.
On the other hand, pricing of maize should result in a positive economic return to a farmer to incentivise farmers to continue farming. The tough conditions that farmers faced in the past season and the rise in maize export parity prices should translate into better maize prices for farmers. ZNFU feels the FRA price of KR65 per 50kg is ‘’quite low in comparison to the prevailing export parity prices’’.
Poor marketing arrangements have been identified as partly responsible for the continued decline in maize production because farmers are always paid late by FRA for their commodities.
‘’Therefore, the Union demands that this season, farmers must be paid on time, because it is painful and degrading to farmers when they spend nights in the cold at FRA depots and banks to sell and get paid for their crop,’’ the ZNFU says in a press statement..
Reforms of the FRA have been anchored on consultations which will culminate into the enactment of the Agricultural Marketing Act. However, the entire agriculture community is concerned over the delay in enactment of this Act.
The Agriculture Marketing Act provides a framework for a greater role for the private sector participation in agricultural commodity marketing in Zambia and has been awaiting enactment for over five years now.
‘’ZNFU is therefore frustrated by the statement that Government is likely to enact legislation to govern the marketing of agricultural commodities in the medium to long term which suggests apparent lack of commitment by Government to implement the Act in the short term. We would like to urge Government to expedite implementation of the Agriculture Marketing Act.’’
Reacting on Government’s proposal for farmers to barter their crop for fertilizer as a mode of payment for accessing FISP inputs, the Union said this is unattainable due to the fact that farmers use maize incomes to meet other spending needs other than fertilizer. On top of this the time value of money has been ignored completely because farmers cannot use fertilizer as a store of value as the monetary value tied up in form of a bag of fertilizer has an opportunity cost, such as, interest that could be earned on the money in the bank.
If the barter system is implemented, where two (2) bags of maize will be exchanged with one bag of fertilizer, farmers will be subsidising Government.
Government recently removed the subsidy on maize, a move likely to trigger an increase in mealie-meal prices. The state has also revised the Farmer Input Support Programme (FISP) in which farmers would be paying double for inputs effective this marketing season.
Agriculture and Livestock minister Bob Sichinga announced the Cabinet decision to remove the subsidy, a move he said was aimed at reducing losses that the Government had been incurring on the whole exercise.
Policy decisions should be aligned with preserving the farmers’ commitment to continuously produce food for the nation. They should, thus, be made to feel they are an integral part of doing results-oriented commercial transactions in Zambia today. Then, smart agriculture would be sustained!
