Buhari to launch special programme for rice farmers

President Muhammadu Buhari will today formally launch the ‘Anchor Borrowers’ Programme’ (ABP) for rice farmers in Kebbi State to assist small scale farmers to increase the production and supply of feedstock to agro-processors.

Some dynamic features of this new agricultural initiative include the identification and selection of Small Holder Farmers, grouping of out-growers into viable cooperatives/clusters, registration of the cooperatives, determination of the economics of selection and engagement of banks/ insurance companies, capacity Building of out-growers as well as banks’ staff and extension agents.

Other salient features of the initiative, the opening of bank accounts by cooperatives/farmers, loan application and disbursement, commencement of agronomic practices and distribution of agro-inputs at recommended periods.

Nigeria aims to be self-sufficient in both rice and wheat production within three years, which many see as a tall goal considering current production levels. The Africa’s largest economy reportedly spends as much as $2.6 billion per year importing rice which it can conveniently produce to at least feed itself.

Anchor Borrowers’ Programme’ is an initiative of the Central Bank of Nigeria (CBN), targeted at creating an Ecosystem to link out-growers (Small Holder Farmers) to local processors, increase banks’ financing to the agricultural sector enhance capacity utilisation of agricultural firms involved in the production of identified commodities and as well as the productivity and incomes of farmers.

The policy document of the programme also indicates that the anchor borrowers’ programme will build capacity of banks in agricultural lending to farmers and entrepreneurs in the value chain reduce commodity importation. It will also reduce the level of poverty among smallholder farmers and create jobs while assisting rural smallholder farmers to grow from subsistence to commercial production levels.

The CBN said that the modalities for implementation hinged on three-pronged approach. One is the Out-grower support Programme under which the CBN has set aside about N20 billion from the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMEDF) for farmers at a single-digit interest rate of 9 per cent.

Another component- Training of Farmers, Extension Workers and Banks component involves customized value-chain finance modules for banks and an “agribusiness” training protocol for farmers that is consistent with the aspiration of the anchor borrowers’ programme.

The third aspect, according to the CBN is Risk Mitigation, a comprehensive risk mitigation strategy, which has been incorporated into the ABP model.

Key stakeholders in the anchor borrowers’ programme include the CBN, Federal Ministry of Agriculture, state governments, development partners, farmers and agro-allied processors among others.

 

ONYINYE NWACHUKWU