Contract wheat farming key in boosting food security

Word From The Market

Cliff Chiduku

CLIMATE CHANGE has been a major threat to Zimbabwe’s food security despite the fact that the country is blessed with fertile soils.

However, the Government has come up with several interventions to spur production. One of the innovative approaches is agriculture financing.

The basic forms of financing in wheat production include contract farming by private contractors, the Government-supported Pfumvudza/Intwasa programme or the National Enhanced Agriculture Productivity Scheme (formerly known as Command Agriculture) and self-financing.

Self-financed farmers are basically those individual growers who use their own free funds to finance production and are not party to any Government scheme or private contracting arrangements.

Self-financed farmers must be registered with the Agricultural Marketing Authority (AMA) to enable them to market their crop at the end of the season.

By harnessing the potential of these financing models, Zimbabwe is this year moving towards a more secure and resilient food system. Contract farming involves an agreement between farmers and companies or Government agency, where farmers commit to growing specific wheat for a guaranteed market. This arrangement not only provides farmers with a stable income, but also ensures a consistent supply of produce throughout the year.

Owing to the El Niño phenomenon that led to a serious drought, the Government has set an ambitious target of winter wheat as a drought mitigatory measure.

Given Zimbabwe’s relatively mild winter, this method has effectively extended the growing season, mitigating the risks associated with reliance on a single growing period. By utilising the winter months, farmers can produce additional crops such as wheat, thereby increasing overall agricultural output.

This is crucial for Zimbabwe.

Part of AMA’s mandate is to promote contract farming of strategic crops such as maize, wheat and sunflower.

Overall, it is envisaged that a bumper wheat harvest this year will go a long way in boosting the country’s food security.

Private sector involvement in wheat production should also be applauded.

This holistic approach by the Government and the private sector has resulted in over 120 000 hectares being put under wheat in the 2024 production season.

The Presidential Input Programme, the CBZ Agro-Yield, the Agricultural and Rural Development Authority, AFC Holdings, Staywell and NMB Zimbabwe have contracted about 15 000 farmers across the country.

The definition of a contractor includes the Government (through its agencies, arms or organs), individuals, entities, companies or other persons registered with AMA to perform this role in a particular production season. Contract farming offers growers a guaranteed market and pre-agreed prices for their produce. This stability has encouraged more farmers to participate under such an arrangement, knowing they have financial security regardless of market fluctuations.

Crucially, contract farming arrangements often include provision of essential agricultural inputs such as seed, fertiliser and pesticides.

Contractors also offer technical assistance and training to farmers, helping them adopt modern farming practices and technologies. The support is leading to increased yields and improved crop quality. This is crucial in enhancing the competitiveness of Zimbabwean wheat on both local and international markets.

With assured markets, farmers are more likely to invest in better farming practices, including the use of improved seed, fertiliser and irrigation systems.

This has led to higher yields and better-quality produce, contributing to food security. Power utility Zimbabwe Electricity Supply Authority has a facility where wheat farmers in the AMA database are placed in production clusters and electricity is ring-fenced for irrigation systems.

Winter wheat requires adequate moisture throughout its growth cycle, especially during the critical stages.

Irrigation ensures a consistent water supply, reducing the risk of moisture stress, which can significantly impact yield.

Contract farming arrangements also help spread the risk between farmers and companies. In times of crop failure or poor yields, the burden does not fall solely on the wheat farmer, as corporates often provide support and resources to ensure successful harvests.

Winter wheat contract farming in Zimbabwe holds immense promise for transforming the agriculture sector and enhancing food security.

By providing farmers with guaranteed markets, access to inputs and technical support, contract farming can drive productivity gains and improve livelihoods.

Word from the Market is a column produced by AMA to promote market-driven production. Feedback: [email protected] or WhatsApp/Call +263781706212.