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Edgar Vhera
Agriculture Specialist Writer
FARMERS have welcomed the proposed changes in the land tenure system saying it will liberate them from the contract debt trap, unlock funds into agriculture industry thereby increasing production and food and nutrition security.
Tobacco growers have been complaining that some of their contractors were over-pricing their inputs and paying low prices such that they would not be able to extinguish the debt, thereby perpetuating a contractor dependency syndrome every year.
On the other hand, financial institutions have been reluctant to loan funds to the beneficiaries of the land reform programme, as the land asset was neither transferable nor accepted as a collateral.
Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe welcomed the Government policy saying this will unlock a lot of funding into agriculture as the land will be transferable drawing serious entrepreneurs into the industry.
“The move will see farmers moving away from contract debt trap to self-financed production using locally sourced appropriately-structured and low-interest rate loans.
“A shift of land from subsistence to commercial as is expected as more surplus produce will be brought onto the local and export markets,” the ZTGA chair said.
We await the statutory instrument and see what the banks will say, he added.
Questions were sent to Bankers Association of Zimbabwe (BAZ) on whether they will extend loans to farmers on the basis of this new securitised land document and no response was proffered by time of going to press.
Zimbabwe Commercial Farmers Union (ZCFU) president, Dr Shadreck Makombe concurred saying recognition of land as collateral was surely going to increase agriculture production as farmers would have access to production funds.
“If people have a positive attitude towards the new securitised document, agriculture production is set to improve as financial institutions will be able to take the land resource as a collateral. Farming will not be the same again as a result of the new secure and transferable document that is as good as title deed,” he said.
Tobacco Farmers Union Trust (TFUT) president, Mr Victor Mariranyika said: “Success of this worthy cause needs to be buttressed by a compliance framework which ensures that people on the land are using it for agriculture purposes otherwise we run the risk of buying and selling of land without positive change in production.”
Zimbabwe National Farmers Union (ZNFU) president, Mrs Monica Chinamasa weighed in saying currently farmers were struggling to get loans from banks but if land was accepted as collateral, then national crop and livestock production will increase.
“Currently there are no agriculture loans to most farmers, but to the few who access the rates are exorbitant making farming unviable.
“I suggest that the Land Tenure Implementation Committee (LTIC) set up should engage farmers to find out the hindrances they are facing in their operations,” she said.
The Government recently announced that the land resource will now able to be accepted as collateral for access to loans from financial institutions.
A recent post-cabinet briefing read: “All land held by beneficiaries of the land reform programme under 99-year leases, offer letters and permits, will now be held under a bankable, registrable and transferrable more secure document of tenure, to be issued by the Government of Zimbabwe to beneficiaries. As such, beneficiaries of the programme will now have enhanced security of tenure to the land they legitimately hold.”
The LTIC will coordinate and steer the implementation of this process and it will work diligently to develop improved security of tenure for land beneficiaries.
Online Reporter