A feature in today’s Jamaica Observer newspaper, takes a look at one of the promises that was made by the Jamaica Labour Party (JLP), while it was the Opposition Party during the run-up to the 2007 general elections. The JLP introduced its proposal for the agriculture sector under the heading ‘Launching a new agricultural revolution’, and promised to “increase the availability of low-interest loans to farmers through the PC Banks, especially to ensure that they are able to meet the required capital investment to adopt new technologies“.
Since winning the election and coming into power, the JLP has indeed kept this promise, as Agriculture Minister Dr Christopher Tufton reported in his contribution to the 2009/2010 sectoral debate in July that loans are available at rates of between 7.8% and 13% for farmers and agro-entrepreneurs, through approved financial institutions such as the PC banks and credit unions.
Tufton has reportedly said: “The Government has done a lot to increase the pool of funds available to fishers, farmers and agro-investors. Last year, the uptake of loan funds amounted to approximately J$890 million, a 181 per cent increase when compared with the loan uptake in 2007 of J$316.8 million.” But he also added that while the low-interest loans are now available, access to credit is a major challenge facing farmers as they have difficulty meeting the collateral requirements and often do not have the expertise to develop proper business plans … more here.
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