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Smallholder Farmers Can Now Access Agricultural Credit Facility Without Collateral

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The Agricultural Credit Facility (ACF) has devised a path-breaking innovation of block allocation to enable farmers access loans based on alternative collateral such as chattel mortgages, cash flow based financing, and character-based loans, among others, Dr. Michael Atingi-Ego, Deputy Governor, Bank of Uganda, has revealed.

“This innovation is unlocking access to credit in areas with communal land tenure; and most especially, for micro and smallholder farmers who are otherwise excluded for lack of collateral to secure credit.

“By September 2020, the ACF had advanced UGX 2.8 billion to 187 small and micro borrowers with non-traditional collateral under block allocation,” he said.

The ACF is administered by the Bank of Uganda on behalf of the Government of Uganda.

The Deputy Governor said that through this innovation, the ACF working with the participating institutions, has extended loans of up to UGX 20 million to small-scale farmers.

He further said that block allocations support financial inclusion and advance equity in economic activity by serving women and youths with limited property rights.

Dr. Atingi-Ego made the remarks just before he a launched the 2020 Agricultural Finance Yearbook at Imperial Royal Hotel, Kampala on Tuesday.

The Agricultural Finance Yearbook  has produced by the Economic Policy Research Centre (EPRC) since 2014/15.

The yearbook contains several agri-financing models for various commodities such as rice, dairy, coffee, among others. The models have some standard features:aggregation of producers for economies of scale, functional linkages between value chain actors (input distributors, extension agents, agri-markets information providers, producers, storage units, marketing agents, processors, financial service providers, wherein some players are ‘lead agents’ in the segments where value chains are weak.

The Ugandan economy is still heavily reliant on agriculture, with 69 percent of households dependent on subsistence farming and nearly 75 percent of all households.

Atingi-Ego  revealed that the share of value-added by the agriculture sector in the economy stands at about 25 percent, presently.

“Boldly facing these facts, it is clear that whenever the BoU announces the Central Bank Rate (CBR), the intended policy signal may not penetrate through to the majority of the population. It is, also, quite evident that the route for the CBR signals to reach the people will be unblocked through agricultural finance,” Atingi-Ego said.

He added: “Fortunately, by seeking to close the information gap between agriculture and finance, these yearbooks bring much-needed illumination to the recesses of information asymmetry, thereby improving risk analysis and credit scoring of agricultural credit.”

 

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Anti-tick vaccine drive gives hope to farmers

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Dairy farmers in Ankole Sub-region are optimistic that the anti-tick vaccine launched by the government will solve their problem of tick resistance to acaricides.
For the last 10 years, dairy farmers across the country have decried tick resistance to acaricides, which has been ravaging the livestock sector.

Mr Emmanuel Kyeishe, a resident of Rushere in Kiruhura District and dairy farmer with more than 100 head of cattle, says dairy farmers in the cattle corridor have battled the problem of tick resistance for a long time.
“The issue of ticks has been rampant in the cattle corridor to the extent of losing our cows. We spend a lot on treating them because of ticks since they infect animals with several diseases,”  he said.

Mr Kyeishe said he loses at least two cows every month to tick-borne diseases like East Coast Fever and heart water.
“I have lost 180 cows in the last five years due to ticks and tick-borne diseases. If they do not die, they get blind and some lose their skin. But if we get a vaccine, it will have saved us a lot,” he said.
Mr Kyeishe added that he has resorted to mixing agrochemicals with acaricides since the available ones on the market are failing.

Mr Jackson Bells Katongole, a dairy farmer in Kashari, Mbarara District, said if the government’s move to have anti-tick vaccine is successful, quality of dairy products would improve.
“A farmer loses at least two to five cows every month and we have resorted to using different concoctions from Tanzania, Rwanda and Kenya because the problem of ticks has made us helpless,” he said.
He added: “We had reached the point of mixing pesticides with acaricides because of tick resistance and in the process our cows have gone blind, lost skin and others died.”

Mr Katongole further said each cow that dies is valued at around Shs2.5 million, which means that a farmer loses Shs5 million every month.
The Mbarara City Veterinary Officer, Dr Andrew Akashaba, said in Mbarara alone, there are about 60,000 head of cattle, mostly exotic breeds which are prone to ticks.
“Most of the exotic breeds of cattle are at a high risk of acquiring ticks and tick borne diseases, which are a major hindrance to livestock development in the cattle corridor,” he said.
Mr Akashaba added that between 2,000 and 3,000 cows die annually in Mbarara alone due to tick-related diseases.

While launching the final clinical trial of anti-tick vaccine manufactured by National Agriculture Research Organisation at Mbarara Zardi on Thursday, the deputy director general and research coordinator, Dr Yona Baguma, assured the farmers that once the vaccine is approved, they will be spraying their cattle against ticks twice in six months as opposed to twice a week.

Original source: Monitor

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Farmers fail to access farm inputs on Ministry e-platform

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About 3,640 model farmers in Nebbi District, who were registered under the Agricultural Cluster Development Programme (ACDP) to access agricultural inputs on E-voucher, are stuck after failure of the system.

The farmers say the system has affected their planting patterns.

The Ministry of Agriculture and Animal Husbandry under the Agriculture cluster Development Programme (ACDP) introduced the e-voucher system five years ago to enable farmers access agricultural inputs electronically.

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Farmers on alert as new banana virus hits Western Uganda

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Farmers should stop getting banana plantlets from districts in Western and North-West Uganda to stop the spread of the Banana Bunchy Top Virus (BBTV) disease, Hebert Musiimenta, the Principal Agricultural Inspector in the Ministry of Agriculture Animal Industry and Fisheries-MAAIF has advised.

The Banana Bunchy Top Virus was first observed in the western Uganda districts in late 2020. In July this year, the ministry raised a red flag when the disease caused havoc on banana plantations in West Nile, Rwenzori and Tooro regions.

An infected plant presents with severe stunting, narrow leaves, chlorotic leaf margins, and dark green streaks on petioles and midribs. The affected plant also shows a rosette-like or bunchy and choked appearance. Diseased plants rarely produce fruit and when they do, the fruit is stunted and twisted.

The disease is spread by aphids and the planting of affected tubers.

The disease has the capacity to wipe out banana gardens within 3 to 5 years unless farmers practice the control measures such as the proper destruction of affected stems, control of aphids, and planting clean materials.

Hebert Musiimenta, Principal Agricultural Inspector in the Ministry of Agriculture Animal Industry and Fisheries (MAAIF), says to contain the spread of the disease, farmers should stop getting banana planting materials from Nebbi, Zombo, Arua, Maracha, and Koboko districts in North-West Uganda and Bunyangabu, Kasese, Kabarore, and Bundibugyo districts in Western Uganda.

He also advises the farmers to be cautious about planting materials from Kisoro, Kabale, Ntungamo, and Isingiro districts since they are near the border.  The disease is suspected to have spread to Uganda from the neighboring Democratic Republic of Congo (DRC) and Rwanda. Musiimenta advised farmers in an interview with URN that if they are to pick planting materials, they should first consult agriculture officers in their areas to recommend safe planting materials.

Musimenta revealed that a team of officials from the Ministry of Agriculture, Animal Industries, and Fisheries is investigating the prevalence of the virus in Kigezi region specifically districts neighboring Rwanda and DR Congo.

He says the disease has the capacity to wipe out banana gardens within 3 to 5 years unless farmers practice the control measures such as the proper destruction of affected stems, control of aphids, and planting clean materials.

Original Source: URN via The independent

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