Arrangement in Place for Roll Out Of Loans to Irish Potato and Onion Farmers

KINGSTON — The Ministry of Agriculture and Fisheries has finalised arrangements for farmers to access low-cost loans for the production of Irish potatoes and onions.

Portfolio Minister, Hon. Robert Montague, who announced the initiative as he opened the 2011 Denbigh Agricultural Show on July 30, informed that the Development Bank of Jamaica (DBJ) and the People’s Cooperative (PC) Bank have created a special pool of funds, with interest rate of six per cent, to on-lend to farmers to produce these crops.

Chief Technical Director in the Ministry, Dr. Marc Panton, tells JIS News that after “much putting together, the loan (arrangement) is now confirmed, and the process will be rolling out with extreme haste”.

“We anticipate that by the latest next Monday (October 17), that all the PC Banks will be on board with the relevant information,” he states.

The provision of the six per cent loan is the latest initiative by the Government, as it looks to significantly boost production of Irish potato and onion to save the country some $3 billion in annual imports.

Already, farmers of the crops are benefitting under the Financial Access for Responsible Members (FARM) project launched in 2009.

The programme, which is being carried out in collaboration with Approved Financial Institutions (AFI), provides loans of between $500,000 to $2 million to be utilised for short-term crop financing, including the purchase of fertiliser, insecticide, seed, and securing labour directly related to the crop production.  They also benefit from technical support to reduce farm loss and increase yield, and market access for the crops.

With the country already seeing increased production of onion and potato under the FARM programme, Dr. Panton says the provision of this latest loan facility will enable the country to exceed its target. The aim is to produce 70 per cent to 80 per cent of Irish potatoes and 50 per cent of onions, locally.

“We are seeing, now, where the numbers in the field have allowed us to, not only meet our target, but once the six per cent loan comes on board, we are going to far exceed our target,” Dr. Panton states.

Minister Montague is also expressing confidence that the initiative will bring the desired results, stating that the country can produce onions and Irish potatoes competitively and comparatively. “I am very excited about this project… it is another example of us producing something that we can produce better,” he tells JIS News.

He says  as part of the initiative, the Government will be moving to ensure that technical assistance and suitable lands are available to the farmers and that they have  markets  for their crops.

“The distributors and some of the importers are willing to sign contracts with the farmers for the farmers to supply them and we are also speaking with the Christiana Potato Growers Association to get into the production of potato seeds,” he informs.

Chief Executive Officer of the Rural Agricultural Development Authority (RADA), Al Powell, tells JIS News that four tractors to help in boosting the production the crops, recently arrived on the island, and farmers will see greater involvement from the agency in the areas of training in best practices and tractor service.

Mr. Powell says the tractors will provide savings to farmers in terms of land preparation.  “When a tractor ploughs an acre of land, if you were to use hand labour, that would be anywhere between $69,000 to $80,000.  So we can clearly see the need to have the tractors, and it is another part of advancing our agriculture production,” Mr. Powell points out.

Meanwhile, stakeholders in the agricultural sector are lauding the Government’s initiatives to boost production of the Irish potato and onion.

“It is a giant move; it’s a boost for our farmers” says General Manager for the Christiana Potato Growers Association, Alvin Murray.

“In the cool hills of Manchester, we could grow short-day onions all year round and we could supply the local demand for potato. Once proper funding is in place and the extension keeps going the way they are going just now, in another two years, we can close that gap for fresh potato,” he remarks.

Manchester potato farmer, Gifton Griffiths, who has benefitted under the FARM project, tells JIS News that the initiative has allowed farmers to plant more potato and care for it properly.

“Coupled with that, we got some better quality seeds, and for the first time in years, farmers were able to smile, because we got better returns on the crop. The yield (last year) was significant, and the price was stable. It was a good year for farmers,” he states.

St. Mary potato farmer, Kenneth Greenland, who also received assistance under FARM, says with his recent success in production, he will be doubling his acreage under programme from one to two acres.

“I went into it last year and I am going back into it this year. I got good assistance with fertiliser…I did 10 bags of Irish potato last year, and this year I am doing 20,” he tells JIS News.

President of the St. Elizabeth Jamaica Agricultural Society (JAS), Roy Morrison, for his part, notes that the provision of single-digit loans to farmers will reduce the price of the produce to the consumer and increase the earnings of the farmers.

“I always believe that in the equation, the consumer must be taken into consideration and if the price is too high, you lose the end user, and if the price is too low, you lose the farmer. This is to help the farmer to pull more acreage in production,” he says.

By Garfield L. Angus, JIS Reporter