AMURU – Farmers in Amuru district who have been identified to benefit from the Micro-scale Irrigation Programme are seeking loans from commercial banks to enable them to participate in the programme spearheaded by the Ministry of Agriculture, Animal Industry, and Fisheries.
Under the programme, Amuru district recently received Shs 870 million from government to facilitate the procurement and installation of micro-scale irrigation machines for 92 farmers who have shown interest.
However, under programme, farmers are required to co-fund the purchase of the irrigation equipment, paying between Shs 2.5mln and Shs 3mln, depending on the distance of one`s farm from the water source.
While meeting the identified farmers in Pabo Town Council recently, Simon Komakech, the Amuru district agricultural officer, said farmers are expected to complete their co-funding process by the end of May so that the machines are procured before the end of the current financial year.
Simon Apire, a farmer from Guru-guru Sub-county said that with a few days left until the end of the financial year, they can only get bank loans for co-funding the programme.
Christopher Ojara, a farmer from Opara Sub-county urges the district leaders to engage the banks, so that they can get loans and repay after harvesting and making sales from their farms.
In his response, Komakech said that the district has already talked to Post Bank and Centenary Bank, who are willing to offer services to the farmers.
According to Komakech, farmers who are interested in getting loans from commercial banks will be registered and connected to the banks.
“Those who are willing to pick loans from the banks will be registered, sign an MOU with the district before they can access the loans, this way, we can easily legally follow them up should they fail to pay up the loan,” Komakech said.
Michael Lakony, the Amuru district LCV Chairperson says the banks initially were reluctant to work with the farmers on grounds most farmers have poor loan servicing habits.
According to Lakony, they have agreed that the district will commit to following up the farmers and ensuring that they service their loans.
“Initially, farmers who picked loans from the banks delayed paying while others attempted to flee. But with this cohort, we have agreed as the district that we will follow them up and ensure that they pay up their loans,” Lakony said.
About Micro-scale Programme
The Programme supports farmers in purchasing the irrigation equipment through a matching grant scheme, in which the cost of the equipment is co-financed by the farmer and the government.
The Programme caps the support to 2.5 acres, thus it is expected to benefit mainly smallholder farmers interested to transition from mainly subsistence to more commercial agriculture.
In addition, the farmer receives complementary services such as extension support in irrigated agriculture. Introduction of irrigation will help smallholder farmers grow crops all year.
Farmers to benefit from the programme will be able to cope with dry spells, produce during the dry season, transition to higher value crops, such as horticultural crops and coffee, and hit the market when prices are more advantageous.
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