Wednesday 29th August, 2007, St. George’s : A three member team of the Ministry of Agriculture headed by Minister Gregory Bowen met with representatives from five commercial banks to discuss the development of a framework through which the banks can partner with the Government to assist in financing the agricultural sector.  The other persons representing the various institutions included Ms Lima Frederick (Acting Permanent Secretary) and Mr. Aaron Francois (Planning Officer) of the Ministry of Agriculture, Ms. Marcia Legendre – (General Manager of Credit) of RBTT, Mr. Kinsley Ashby of Scotia Bank, Mrs. Jennifer Gittens and Mr. Jerome Thomas of Cooperative Bank, Mr. Dion Moses of RBTT and Mr. Mervin Lord of Grenada Development Bank.

 
At that meeting the Minister highlighted the measures taken by Government to assist in the rehabilitation of the agricultural sector following the severe devastation suffered from Hurricanes Ivan and Emily in 2004 and 2005 respectively that were estimated at EC$200 million.
 
According to Minister Bowen a total of EC$ 15 million was spent on farmers and farm workers immediately after Hurricane Ivan to assist in the clearing of lands and in stabilizing livelihoods in the rural communities. Several millions were also spent on improving and rebuilding infrastructure and instituting critical programmes.  Some of these included the refurbishing of the propagating stations, farm houses and agricultural district offices and procuring and distributing inputs including tools, seeds and fertilizers.  More recently the Ministry of Agriculture has instituted a farmers’ loan scheme in which farmers are able to access a maximum of $40,000.
 
Minister Bowen and the Permanent Secretary told the banks representatives that farmers’ perception of them is one of anti-agriculture and that they both need to work together to change that image.  The Government officials of the Ministry of Agriculture spent much time trying to explain to the banks some of the dynamics of the agricultural sector including the plight of large farmers who are not service by the $40,000 loan facility offered by the Ministry.  The banks were encouraged to consider innovate to help finance agriculture and fisheries activities.  The Ministry hinted that many farmers are staying away from the bank because of the stringent conditions demanded by the banks coupled with the high risks that characterize agricultural activities.
 
In response the banks said that in several cases farmers making application for loan are lacking information to allow the banks to make a proper assessment. The banks representatives indicated that farmers are unable to provide sufficient financial and technical information and very often they present proposals that they themselves do not fully understand.
 
In addition, the banks suggested that the Ministry of Agriculture make available to them a strategic plan outlining the plans and programmes for the sector.  It is believed that providing this information would give the bank a better opportunity to understand the agricultural sector so to know where best to direct their investment.  The Minister was further advised that the Government should clearly outline what are the packages of incentives and concessions it would provide to help reduce the risks involve in agricultural activity and in so doing provide a greater level of comfort for the banks.  The bankers also encouraged the Ministry to share with them any information on best practices in agricultural credit that they know of.
 
The bankers expressed concerns in several areas including the need for greater enforcement of the praedial larceny laws, need for guaranteed markets for farmers produce, greater incentives to enhance farmer mechanization and role of agricultural commodity organizations and agencies.
 
Minister Bowen was assured by the bankers of their openness to consider concessionary rate of interest to support agricultural development and their willing to partner with the Ministry’s Extension Service to make farmers more aware of banking requirements.  One of the main points touch on is the need for farmers and fisher folks to utilize the banks to manage their financial resources and create a financial record with the institution.