Sixty-two year old farmer, Penisoni Nabitu of Nadala village in Nadarivatu has welcomed the move by the Ministry of Agriculture to introduce a reinvestment concept in the form of a trust for farmers in the area.
“This is a great initiative that is being introduced by Government because on a lot of occasions, after harvesting, there is little to no planting material left for farmers to plant for the new season as well as the agro-input needed to fertilize farms,” Nabitu quipped.
“I believe this initiative will ensure that we have reserved funds to cater for our needs and can access it whenever needed, we can liaise with the Ministry through this Trust account to receive further assistance, this scheme will surely benefit us in the long term.”
Echoing similar sentiments was Apenisa Vunitale, a farmer of Nadala who acknowledged the Government for continuously assisting farmers to improve their livelihoods sustainably.
“With the news that the market will be brought right to our villages and other Government programs that will contribute to our successful harvesting and marketing of potatoes and other produce, we couldn’t be more thankful. This is a great relief for all farmers in this district,” he said.
“The thought and effort put into introducing this initiative cannot have come at a better time because, first it has ensured that we have a secure market, and second, it will ensure that we save some of our money during this season and it can be used again during the next season, this is a blessing for every farmer who signs up for the trust account because, after every harvesting season, we will always have money reserved for the coming season and so on.
Minister for Agriculture, Dr Mahendra Reddy officiated in the harvesting of red Pontiac potato variety and also unveiled the new Farmers Trust scheme.
As part of the Farmers Trust Scheme, the AMA will buy produce from the farmer, paying only 85 percent of the total proceeds from the sales, with the remaining 15 percent placed in a trust account maintained by the Agricultural Marketing Authority.
“These are models of farmers for remote interiors and we are encouraging exporters to also open trust accounts for farmers that supply them, as long as we see that deducted percentages are going back to the farmers,” said Minister Reddy.
“It is a tripartite arrangement between the farmer, AMA and the Ministry of Agriculture. The role of the Ministry is an overseer and we will verify and advise on the package of practice for reinvestment.
Minister Reddy added that: “Out of the 21 potato farmers that marketed their produce to Agriculture Marketing Authority (AMA), 10 of them are now pioneers of the ‘Reinvestment Concept’. With the realization of this concept, I see a paradigm shift creating a mindset of a new generation of farmers who will unleash the full potential of Fijian agriculture away from the old culture of over-dependency.
The initiative also allows farmers to increase their reinvestment contribution upon agreement with the AMA, with the farmer able to access their 15 percent (their contribution) anytime for the purpose of reinvesting in the farm.
Executive Chairman of Agriculture Marketing Authority, Setareki Tale said that the 15 percent deducted from crop sales by farmers will go towards their own preparations for the new planting seasons, and was not exclusively to potato farming, with farmers having the option to choose which crops their deducted funds are to be utilized on, regardless of commodity.
The reinvestment fund can be used for land preparations, procurement of agro-inputs and procurement of fixed assets for farm operations. The reinvestment fund will not be paid directly to the farmer but to the vendor of the outlined activities.
The AMA will maintain individual accounts of each farmer with account details being readily accessible at any point in time to farmers who sign up to be members of the scheme.