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Poor repayment of loans inhibits
credit extension to farmers - Eledi
Accra, Dec. 27, Ghanadot/GNA – A Deputy Minister of Food and
Agriculture, Mr. Clement Eledi has said that the poor
repayment record of most farmers was stalling initiatives to
extend credit facilities to them.
Speaking at the Annual General Meeting of the Peasant
Farmers Association of Ghana (PFAG), an advocacy group on
Trade and Agriculture, in Accra, Mr Eledi said the inability
of most farmers to pay back loans granted them had led to
the collapse of various credit schemes initiated by
government with funding from the African Development Bank.
He said, while government understood that access to credit
by farmers was essential to increasing production, the bad
credit record was enough to prevent the institution of any
similar schemes.
Mr Eledi said such schemes become sustainable only when
beneficiaries meet their side of the bargain by paying on
time to enable other farmers to access the facility.
However, he said, government had recognized the problem and
was poised to find a lasting solution to it as well as
address the problem of access to credit by small-scale
farmers through the proposed establishment of agriculture
development fund announced in the 2008 budget.
Mr Eledi asked the farmers to bring their ideas to bear on
the modalities for establishment of the fund.
He said government policy focus would be on the small scale
farmers since success in the sector depended on them.
However, there is the need for the farmers to improve on
their production and marketing methods to be able to stay
above competition.
PFAG had already welcomed the establishment of an
Agriculture Credit Fund to provide financial resources to
farmers but said it must be backed by a legislative
instrument to meet the needs of peasant farmers, who are in
the majority to have access to agriculture financing.
Mr. Mohammed Adam Nashiru, President of PFAG said farmers
had long suffered from undue policies that affected
production, marketing and livelihoods.
He appealed to government and Ghanaians to patronize locally
produced food to help keep farmers in business for
accelerated development.
Mr. Edward Karewe, who spoke on the importance of
establishing an agricultural credit fund, said it was
necessary that any fund established should meet the needs of
peasant farmers, who are the majority.
PFAG was formed with the aim to mobilize the over seven
million farmers to lobby for changes in policies that were
inimical to agricultural development.
The two-day AGM on the theme: “Ghana @ 50 Our Quest for Food
Security,” was to deliberate on issues affecting farmers,
examine the performance for last year and draw up strategies
for the future.
GNA
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