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Minister Chinamasa

Elita Chikwati Agriculture Reporter
Farmers and merchants have signed contract deals that will see nearly 500 000 hectares of land being put to crop production at a cost of $362 million, the Ministry of Finance and Economic Development has said.

Finance and Economic Development Minister, Cde Patrick Chinamasa recently said contract farming had become an important arrangement to finance agriculture activities.

“Farmers should also benefit from contract farming arrangements that have become an important win-win scheme for financing agriculture and guaranteeing commodity inputs supply to respective contractors.

“Contract farming arrangements have positively supported production of such agricultural commodities as tobacco, cotton, barley, soya, sorghum, among others,” he said.

According to the 2016 National Budget, 483 850ha have been put under contract farming at a cost of $362,9 million.

A total of 74 000ha of maize contracts worth $55,1 million have been concluded this season while 71 300ha of soyabeans were contracted at a cost of $54,4 million, 10 500ha of sorghum were also put under contract farming at a cost of $5,2 million.

Tobacco has always received funding from financial institutions’ and merchants. The sector saw 72 000ha being put under contract farming at a cost of $100,8 million while 255 000ha of cotton were put under contract arrangements at a cost of $146, 6 million.

Government also supported 60 870ha of cotton at a cost of $35 million.

Cde Chinamasa urged farmers to adhere to contract provisions and avoid side marketing as this undermined sustenance of such financing arrangements.

“Contract farming also comes up with advantages of farmer support through provision and access to extension services, over and above guarantee of market for produce,” he said.

Meanwhile, the Ministry of Agriculture, Mechanisation and Irrigation Development together with the Ministry of Lands and Rural Resettlement are in the process of drafting a contract farming framework.

Deputy Minister of Agriculture, Mechanisation and Irrigation Development responsible for crops, Cde Davis Marapira said Government was yet to come up with a final framework.

“We are encouraging contract farming and joint ventures and both parties should honour their obligations.

“Farmers can get assistance from the department of economics and marketing in the Ministry of Agriculture, Mechanisation and Irrigation development. The department will assist with the structuring of the contract,” he said.