Farm input loan programme can help commercialise farming
Malawi Ministry of Agriculture and Food Security says it expects the newly-introduced Farm Input Loan Program (Filp) to help promote commercialisation of farming at smallholder level and lead to increase agricultural productivity in the country.
Government recently introduced Filp, which will be implemented by the Malawi Rural Development Fund (Mardef), by providing loans to low income groups in Malawi, particularly those in rural areas, including women and the youth.
Beneficiaries of the programme will be cooperatives, associations, farmer clubs, farmer groups or savings and credit groups and youth with potential to repay the loan.
Assistant chief agribusiness officer in the Ministry of Agriculture and Food Security Pearson Soko told journalists during a media interaction on the programme on Wednesday that Filp is one of the key agribusiness programmes being implemented to enable potential business-oriented farmers to access fertiliser on loans.
“Among other broad objectives, the programme will increase access to inorganic fertilisers, promote commercialisation of farming at smallholder level where loan is being used and increase agricultural production and productivity,” said Soko.
He explained that government also expects that the programme will help give wider opportunities to farmers who were not able to access finance and inputs from other programmes, projects and initiatives.
He said among other roles, their ministry’s role will be to sensitise key stakeholders in agriculture sector, assist in identification of existing farming groups as well as brief potential loan beneficiaries on implementation modalities.
According to Soko, implementation of Filp will be done in collaboration with other key stakeholders, including farmers clubs and cooperatives, the First Merchant Bank, farm input suppliers and distributors.
On guidelines of the programme, Soko clarified to journalists that beneficiaries of the programme should not benefit from the Farm Input Subsidy Program (Fisp) and vice-versa.
He warned that once discovered, the application would be withdrawn.
“All groups will have to own at least 10 acres of land for cultivation and this will have to be confirmed by village head-men, group members, Ministry of Agriculture officials and credit officers,” he said.
Malawi Rural Development Fund (Mardef) chief executive officer Joe Mononga said traditional leaders will help Mardef and other partners to verify that members of farmer organisations are from the area and have minimum land requirements for them to access inputs under the programme.
On banks, the Mardef boss told journalists that FMB in collaboration with Mardef will be responsible for production and issuing of identity cards.
He said groups will have to deposit five percent of the total loan amount to act as partial collateral which he said will not be withdrawable until the loan is fully repaid.
During the briefing, both Ministry of Agriculture officials and Mardef officials pleaded with the media to ensure accurate and positive reporting about the programme.
