The minister of the Federal Ministry of Agriculture and Rural
Development (FMARD), Mr Akinwumi Adesina, had in an interactive session
with mechanisation partners in February said, “after the expressions of
interest published in various media, the 80 agriculture and equipment
hiring entreprises (AEHE) will be handed over to the winners by early
April to commence operations for the 2014 farming season.
“For the 2014 farming season, N1billon has been approved for the growth enhancement scheme (GES) on mechanisation. Farmers will only pay 50 per cent of the cost of taking off while the mechanisation GES will cover the other 50 per cent.”
Sadly the farming season is here but the AEHE is yet to kick off. It will be unfortunate if these promises become just a policy statement as the call for practicing agriculture as a business rather than a development activity has taken root and farmers are keen to expand their activities.
The need for government to fulfil all its obligations and ensure that the agriculture sector is redeemed becomes a necessity for it to successfully achieve the goals of the agricultural transformation agenda which is aimed at eradicating hunger and creating jobs for the huge number of unemployed Nigerians both in the rural and urban areas.
In an interview with the national financial secretary, All Farmers Association of Nigeria (AFAN), Mr Tunde Aronsanye, he noted that “youths are shying away from farm work because of the way agriculture is still being practiced. For instance, there is about one tractor to 500/1000 farmers which is grossly inadequate. We have situations where farmers pay for tractor services in April only to have access to it in September. So the way farming is practiced is still not attractive to get our youths to join in unlike other professions. But in our own little way, we are trying to showcase the potential of agriculture to the youths through sensitisation and workshops. We are also appealing to the government through the ATA to make farming more attractive.”
While it is estimated that the current level of mechanisation in Nigeria is 0.03hp/ha, the Food and Agricultural Organisation (FAO) of the UN recommends 1.5hp/ha. It is estimated that the total number of tractors in the country are about 30,000 and over 50 per cent of those are in a bad shape and so not functional.
The AEHEs are established and managed by the federal government in partnership with the private sector, while the financing is also a partnership between the federal government and the Bank of Agriculture to provide mechanised services to farmers at a token. It is expected that the government will provide 35 per cent of the loans, Bank of Agriculture 35 per cent, agro-machinery vendors 10 per cent and service provider operators (SPOs) 20 per cent equity.
To kick-start the implementation of the framework, the Adesina, through the ministry, approved an intervention scheme of N3.6 billion to serve as a pilot fund, stating that “each of the AEHE is to be equipped with five units of tractors, five units of power tillers, and various harvest and post-harvest equipment will be off-taken by SPOs from the private sector using the refinancing credit facility window of the scheme on a demand-driven basis.”
He said, “Each centre costs an average of N43 million and SPOs will provide 20 per cent equity to start up an AEHE. The balance of 80 per cent jointly financed by the PPP will be repaid over four years with a seven per cent interest as cost of fund. The 35 per cent government counterpart fund has two years moratorium on both capital and interest.
“The GES has been expanded beyond seeds and fertilisers, to provide mechanisation subsidy to assist Nigerian farmers access mechanisation services from these centres. Farmers will receive their mechanisation support as electronic vouchers on their mobile phones which they will use to pay for mechanised services at the registered AEHEs.”
Adesina had earlier said “We are not unaware of the challenges that has bedeviled the mechanisation sector in the past years. In spite of government’s past efforts at subsidising the cost of tractors at 45 per cent of the original cost, the desired impact has not been created as the small scale farmers that produce 80 per cent of our food still have very little or no access to these subsidised machinery.”
“For the 2014 farming season, N1billon has been approved for the growth enhancement scheme (GES) on mechanisation. Farmers will only pay 50 per cent of the cost of taking off while the mechanisation GES will cover the other 50 per cent.”
Sadly the farming season is here but the AEHE is yet to kick off. It will be unfortunate if these promises become just a policy statement as the call for practicing agriculture as a business rather than a development activity has taken root and farmers are keen to expand their activities.
The need for government to fulfil all its obligations and ensure that the agriculture sector is redeemed becomes a necessity for it to successfully achieve the goals of the agricultural transformation agenda which is aimed at eradicating hunger and creating jobs for the huge number of unemployed Nigerians both in the rural and urban areas.
In an interview with the national financial secretary, All Farmers Association of Nigeria (AFAN), Mr Tunde Aronsanye, he noted that “youths are shying away from farm work because of the way agriculture is still being practiced. For instance, there is about one tractor to 500/1000 farmers which is grossly inadequate. We have situations where farmers pay for tractor services in April only to have access to it in September. So the way farming is practiced is still not attractive to get our youths to join in unlike other professions. But in our own little way, we are trying to showcase the potential of agriculture to the youths through sensitisation and workshops. We are also appealing to the government through the ATA to make farming more attractive.”
While it is estimated that the current level of mechanisation in Nigeria is 0.03hp/ha, the Food and Agricultural Organisation (FAO) of the UN recommends 1.5hp/ha. It is estimated that the total number of tractors in the country are about 30,000 and over 50 per cent of those are in a bad shape and so not functional.
The AEHEs are established and managed by the federal government in partnership with the private sector, while the financing is also a partnership between the federal government and the Bank of Agriculture to provide mechanised services to farmers at a token. It is expected that the government will provide 35 per cent of the loans, Bank of Agriculture 35 per cent, agro-machinery vendors 10 per cent and service provider operators (SPOs) 20 per cent equity.
To kick-start the implementation of the framework, the Adesina, through the ministry, approved an intervention scheme of N3.6 billion to serve as a pilot fund, stating that “each of the AEHE is to be equipped with five units of tractors, five units of power tillers, and various harvest and post-harvest equipment will be off-taken by SPOs from the private sector using the refinancing credit facility window of the scheme on a demand-driven basis.”
He said, “Each centre costs an average of N43 million and SPOs will provide 20 per cent equity to start up an AEHE. The balance of 80 per cent jointly financed by the PPP will be repaid over four years with a seven per cent interest as cost of fund. The 35 per cent government counterpart fund has two years moratorium on both capital and interest.
“The GES has been expanded beyond seeds and fertilisers, to provide mechanisation subsidy to assist Nigerian farmers access mechanisation services from these centres. Farmers will receive their mechanisation support as electronic vouchers on their mobile phones which they will use to pay for mechanised services at the registered AEHEs.”
Adesina had earlier said “We are not unaware of the challenges that has bedeviled the mechanisation sector in the past years. In spite of government’s past efforts at subsidising the cost of tractors at 45 per cent of the original cost, the desired impact has not been created as the small scale farmers that produce 80 per cent of our food still have very little or no access to these subsidised machinery.”
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