Chronicle Editor
More than 125 000 farmers have joined either the Command Agriculture Scheme or contract farming this summer cropping as self-financing farming business continues to be under threat due to soaring input prices.
The inputs prices have soared by more than 300 percent in the past week.
Though Government intervened to slash inputs prices by 50 percent last month, farmers are increasing turning to contract farming where all inputs are given at reasonable prices.
Companies like Cairns, United Refineries and National Foods among others are moving to help the farmers who could not join the Command Agriculture Scheme.
Zimbabwe Commercial Farmers Union (ZCFU) immediate past president, Wonder Chabikwa, said contract farming was the way to go due to provision of inputs and stabilised pricing structure.
“According to our statistics, 112 235 farmers have registered to be contracted under Command Agriculture Scheme to grow over 230 000 hectares of both maize and soya bean while close to 12 500 farmers are in contract farming with large companies such as Pure Oil Industries, National Foods and Cairns among other companies,” he said.
“The increase in contract farming numbers this year is a result of high input prices, which are beyond the reach of many. Under contract farming, companies secure fertilisers and seeds at reasonable prices from both local and international producers while under Command Agriculture, Government provides the inputs.
“Naturally, people don’t like contract schemes due to their terms and conditions but given prices of $50 per 10 kg of seed maize and $60 per 50kg of fertiliser, self-financing farming is still unsustainable hence people will join these schemes to get inputs,” said Chabikwa.
Zimbabwe has become food self-sufficiency due to Command Agriculture, which was launched two years ago. In the last two years Zimbabwe has managed a combined output of 3,8 million tonnes of maize against a demand of 3,6 million tonnes.
This year, Government has contracted more than 200 000 hectares to be under maize and 33 000 hectares under soya bean as it moves to reduce food imports.
Launched two seasons ago, Command Agriculture, which has been expanded to include soya bean, fisheries and livestock, continue to increase productivity across subsectors of agriculture.
Under Command Agriculture, inputs such as fertilisers and seed are procured by private investors and availed to farmers.
The debt is guaranteed by the Government. When farmers sell their produce through stop order payment, part of the proceeds is used to pay the debt.
Meanwhile, most farmers have started receiving inputs under the Presidential Input Support Scheme and Command Agriculture Scheme for 2018/ 2019 summer cropping season.
Under the Presidential Input Support Scheme each household gets 10kg of maize seed, 50kg of basal fertiliser (Compound D) and 50kg of top dressing (Ammonium Nitrate).
Government has set aside $200 million to fund the Presidential Input Support Scheme and targets to assist 1,8 million communal households across the country.
Corporates and individuals with free funds have been given greenlight to import fertiliser and chemicals to reduce pressure for foreign currency.
Sakunda Holdings remains the major financier of the Command Agriculture programme with CBZ, Ecobank, National Foods Limited, Homelink and Northern Farming also joining the party.
— BH24
Online Reporter