Expert wary of Neef farm implements loans

 Agriculture policy expert Tamani Nkhono Mvula has described as unrealistic the 12-month repayment period for the agriculture loans being offered by the National Economic Empowerment Fund (Neef).

The micro-irrigation and farm implements loans range from K1 million to K250 million, with a 2.2 percent monthly interest and the 12-month repayment period has five months’ grace.

But in an interview on Wednesday, Nkhono Mvula said considering unanticipated challenges that farming faces, it is unrealistic for repayment to be put at 12 months.

Amid the challenges, he said it is not automatic that a farmer will produce enough crops for sale to make a profit to repay loans.

“This is an agriculture investment and the expectation is that people will harvest, perhaps two times in a year. But in most cases, a return on investment on irrigation cannot be recouped in one year,” he said.

Nkhono Mvula said in an ideal situation, the repayment period ought to have been put at either two or three years to enable farmers to first establish themselves.

He said there is a lot that goes into irrigation farming before it initially kicks off; hence, repaying the farm implements loans within a year is not practical.

According to Nkhono Mvula, repaying the Neef loans within a year would only be possible for those who are established.

Neef chief executive officer Humphrey Mdyetseni on Thursday said he was on leave; hence, referred this reporter to the head of finance Benedicto Kananza.

But Kananza requested a questionnaire. By press time yesterday, we were yet to get the response.

For farmers to access the loans, they are supposed to file their applications, including a reference letter from a village head, business plan, national identity card, business registration certificate, available farmland of at least five acres, evidence and confirmation of land ownership or lease agreement by a village head or any traditional leader.

Those obtaining the loans should also submit a six-month bank statement, spouse letter, physical collateral, and quotations of farm inputs where applicable and proof of payment for part-time farmers