28 groups to cash in on first set of small farmers’ loans

The Agriculture Sector Development Unit (ASDU) is currently preparing 28 farmers’ groups based in Regions Two, Three, Four, Five, Six and Ten, to access funds from the newly-established Gy$220 million Small Farmers’ Group Financial Facility.

The unit expects that the first set of funding should be ready for disbursement sometime in March. Some of the activities for which the groups are seeking funding include food processing, such as production of sauces, jams and jellies; and livestock development, mainly pork production and sheep and goat rearing.

The applicants include the Pomeroon Women’s Agro-Processor Association from Region Two; the Parika/Naamryck/Ruby Farmers Progressive Organization from Region Three, and the Good Success/Garden of Eden Farmers Group from Region Four. From Region Five, the West Berbice Sheep and Goat Farmers Association is also seeking help from the fund.

Under this financial facility, farmers and producers groups can access up to Gy$4 million in grants and loans to invest in strictly non-traditional agricultural activities, such as production of fruits and vegetables and livestock. Approximately Gy$180 million is available as grants for investments in assets, while Gy$42 million will be disbursed as loans for working capital financing.

On Sunday, January 30th, Agriculture Minister Robert Persaud said that, once the Institute of Private Enterprise Development (IPED) approves the business plans, the institution would disburse the funds to the groups as quickly as possible, so that applicants can move ahead with their development activities. He noted, though, that only “organizationally effective and strong groups” would be eligible. Nevertheless, since the fund is established under the Rural Enterprise Development Project (READ), the ASDU will work with all groups to organize them, and to prepare comprehensive and practical business plans that IPED can consider for approval.

While READ supports the groups’ establishment and helps develop the business plans, IPED is administering the fund and is therefore responsible for reviewing the business prospects and deciding on disbursement of funding.

In addition, READ Project Coordinator Joslyn MacKenzie explained that the project includes training of the groups’ members to ensure effective management and success of their business ventures. Hence he projects funds to be ready for disbursement in March. He made it clear that READ would continue to work with the groups for more than one and a half years after they would have received funding. This is to ensure that the group’s activities are successful and sustained.

When asked about newly-formed groups that might be interested in the fund, he indicated that READ has a phase to establish and develop such organizations looking at their readiness, commodities targeted, and helping with market linkages before moving to the next level.

He advised, though, that other groups that have not yet applied but are interested have up until Friday, February 4th, to send letters expressing their interest to the Director of the ASDU, based at the Agriculture Ministry, Regent and Vlissengen Roads, Bourda, Georgetown.