Special fund to speed up payments to farmers

Mutsawashe Mashandure

Herald Correspondent

Government has introduced the Crop Purchase Buffer Fund to ensure farmers are paid promptly for their crops.

The fund is part of a broader strategy to transform the agricultural sector into a US$13,75 billion industry by the end of next year.

Lands, Agriculture, Fisheries, Water, and Rural Development Minister Dr Anxious Masuka said at the buffer fund’s launch ceremony in Harare last Friday that the fund was crucial for tackling the difficulties farmers face, especially with regard to late payments.

“For farmers, farmers’ unions, GMB, and the ministry in particular, today is an exciting day,” he said.

“To help the farming community overcome its difficulties, we are creating a special fund. In order to deliver to GMB, farmers frequently labour for months without knowing when they will be paid. This fund will give them the assurance that their payments will be made on time.”

The establishment of the fund came as a response to the pressing need for a reliable financial mechanism to support farmers. Dr Masuka said the Ministry had started sourcing funds, and as of last Thursday, over US$98 000 and ZiG6,4 million had been raised.

“Some farmers will benefit immediately as we assist Treasury in making timely payments.”

Dr Masuka stated that the Government is dedicated to improving the agricultural framework and that the money will come from land levies that farmers have paid as well as a recently allocated US$50 million fund to the Agricultural Finance Corporation (AFC) to help with payments within 48 hours.

In addition to the fund, the Government is also expanding its strategic grain reserve from 750 000 tonnes to 1,5 million tonnes to address the challenges posed by climate change.

The reserves will enable the Government to cope with food deficit without having to worry about imports.

According to Dr Masuka, the agricultural transformation strategy placed a strong emphasis on the necessity of increasing silo capacity in order to support the expanding strategic grain reserve, which is also being reviewed.

“We are currently constructing additional capacity at seven silo sites, adding 292 000 tonnes to create just over 1,14 million tonnes of silo capacity, perhaps by the end of 2025 into 2026,” he said.

The private sector is also expected to play a crucial role in securing their own agricultural inputs, added Dr Masuka.

By 2028, private organisations are expected to contract at least 40 percent of their raw material needs.

“The Government has no justification for using taxpayer funds to fund purchases made by the private sector,” he stated.

The establishment of the Crop Purchase Buffer Fund is regarded as a significant step in empowering farmers and guaranteeing the agricultural sector’s sustainability in Zimbabwe.

Dr Masuka said stakeholders should engage continuously with the Government to monitor the fund’s implementation and effectiveness.

“As the agricultural sector gears up for future challenges, the Government remains optimistic that this fund will pave the way for a more resilient and prosperous farming community.

“Together, we can build a resilient agricultural sector that supports our economy and sustains our communities,” he said.