Potato growers access loans
Published:Saturday | July 16, 2011 | 12:00 AM
POTATO FARMERS represented by the Christiana Potato Growers Co-operative Association have been benefiting from a number of initiatives, implemented by the association to ensure the viability and sustainability of, not just the farming community, but the supply of the product on the local and international markets.
The association covers six parishes across Jamaica - Trelawny, Manchester, St Elizabeth, St Catherine, Clarendon and St Ann. One of the most significant initiatives designed to assist the farmers is a contractual arrangement between the association and its more than 500 members and affiliates.
According to Nardia Taylor, administrative assistant at the association, the contract allows the farmers to re-sell a certain amount of the potatoes to them, therefore, guaranteeing them an available market for their products.
"When we buy from them, it is like a guaranteed insurance. We also monitor the farming process, provide training throughout, and send someone to assist them with harvesting," Taylor said.
The contract also allows the farmers to access loans from different financial institutions to assist them in starting, or continuing production on their farms. According to Corey Smith, acting credit officer at the National People's Co-operative Bank of Jamaica (NPCB), one of the main financial institutions utilised by the farmers, the loans are normally disbursed during the spring and summer of each year.
Business plan
The loan falls under the heading 'Irish Potato Loan', and Smith explained that, once the farmers receive the contract from the association, they take it to the Rural Agricultural Development Authority (RADA) where they receive assistance in formulating a business plan.
"The farmers need to show that they and the association are in some agreement to sell the potatoes back to the association, and how they plan to remain viable. They must remain viable in order to access the loans, so they can show evidence of how they plan to pay it back," Smith said.
Farmers are also asked to provide security for the loans, including a land title, or motor-vehicle title valued at seven years and under. Also, if the farmer already has an account with the NPCB, they can borrow up to 90 per cent of the cash amount in their account.
"There are four payment options - monthly, quarterly, semi-annually or yearly. The monthly option is more flexible," Smith said.
Operations Officer Janette Stewart said an evaluation is also done on the farm before the loan is disbursed. She also indicated that the loan is not given at one time, but in stages.
"We conduct an estimate from the planning stage, and, for each stage of the farming process, they get the money. Further evaluation is also conducted, and a progress report done on the farm," Stewart explained
The farmers also enjoy a repayable interest rate of 9.5 per cent for up to a two-year period.
Meanwhile, the association encourages the farmers to provide feedback if their crops fail. Taylor said the association conducts tests to see why the crops fail and help them to restart. The NPCB also facilitates the farmers during this process and reschedules their loan payments.