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The Government has given farmers the green light to engage in joint ventures and contract farming with partners of their choice, subject to its approval, The Sunday Mail has learnt.
The development is meant to capacitate farmers who, despite their huge potential on farms, have not reached maximum production due to financial constraints triggered by the reluctance by some financial institutions to extend loans towards farming activities.
In the absence of bank support, most farmers have relied on Government input support as well as the Presidential Input Support Scheme.
Minister of Lands and Rural Resettlement Dr Douglas Mombeshora said people should not confuse joint ventures or contract farming with sub-letting of farms.
“Sub-letting (is not permitted and) should not be confused with contract farming and joint ventures which capacitate the resettled farmers… These (contract and joint ventures) are allowed but require approval of the Ministers of Lands and Rural Resettlement and Agriculture, Mechanisation and Irrigation Development,’’ said Dr Mombeshora.
He said farmers should sign Land Use Agreements approved by district and provincial lands offices and only complicated cases should be referred to the national level.
Dr Mombeshora urged lower level lands officers to first investigate cases of alleged farm sub-letting thoroughly to avoid situations were contract and joint ventures were mistaken to be illegal.
He said some banks which were owed by farmers had already engaged their creditors in approved joint ventures, not exceeding five years, in order to recover their money.
Zimbabwe Commercial Farmers Union president Mr Wonder Chabikwa said the pronouncement by the Government was a step in the right direction adding that most farmers had lost property after failing to repay bank loans.
“We appreciate such arrangements, our farmers are not defaulting (loan payments) deliberately, but due to circumstances beyond their control. Take for instance the issue of pricing of farm products where farmers have been left with no option but to give away their produce at very low prices,’’ said Mr Chabikwa.
He said most financial institutions were demanding collateral in the form of title deeds to houses, but the Government arrangement on joint ventures and contract farming would enable farmers to seal better and profitable deals. Dr Mombeshora also said all farmers whose land had been re-designated under peri-urban areas should not convert their farms for housing purposes, but must seek Government assistance to get alternative land.
Tinaye Agere
Online Reporter