Lot of farmers losing houses to banks over loans - Chinotimba

Buhera South Zanu PF MP Joseph Chinotimba has claimed that a lot of farmers were losing their houses to banks due to failure to service their loans as a result of finance problems.

"In terms of the Budget that Hon. Patrick Chinamasa has presented, the pointers that Hon. Minister need to look into because year in, year out, we are importing food. They will say that a stitch in time saves nine," Chinotimba said.

 "If the Minister were to address this issue, we may avoid the idea of importing food. I do not want to overlook the fact that they are also supporting those that are in need in communal lands with funding. Agriculture is the mainstay of the economy and Government needs to address its mind and focus and ensure that they assist commercial farmers because the commercial farmers will be in a position to repay the loans."

He said  the Ministry of Agriculture if it is properly funded and people are able to irrigate and they have fertilizers, very little will then be required to buy food because it will be grown locally instead of being imported.

"Imports by their nature are very expensive if the Ministry of Agriculture is to be funded and the commercial farmers were to be funded by the Government instead of the usual rates they are being subjected by the banks," he said.

"A lot of farmers are losing their houses to the banks after failing to repay their loans. A lot of farmers are now destitute instead of enhancing themselves because of the issue of the loans that they are getting form these banks. The Government should go into a discussion or into an agreement with the Seed Houses so that the Government can be given these seeds on loan and the Government will pay after the harvest."

Chinotimba said he once had a discussion with the seed houses and they indicated that they are in a position to give Government seed on loan and that Government only repay after the farmers have harvested.

"They said the seed houses were not going to be making a profit out of this. Hence my reiteration that it will be easier if Government were to have a discussion with the seed house and such an arrangement would be made and that the seed could be accessed through the GMB instead of the individual farmers going to be subjected to usury terms or rates by the banks," he said.

 "I am urging farmers not to repay their loans but the point I am making is that the USD$ will never lose its value and it will always appreciates in value. So, if you are given these usury rates, the A2 farmer will eventually stop farming and then you will disposes them of the land but they will be encountering problems in trying to source for the seeds and fertilizers."

Chinotimba said in the past, the white farmers were afforded loans at concessionary rates because the banks were white owned.

"Furthermore, the rate of profit by these banks was not prohibitive but what we are now doing is that if one were to get a loan, the interest rates are too excessive. The loans are difficult to service and they have the direct effect of killing our agriculture. I urge the Hon. Minister to critically examine this issue on how to end hunger or starvation and how the import of food stuffs can be stopped. We should not be seen in bad light as people who do not know how to do their farming when in fact we are very good farmers," he said.