The commercial farming initiative of the Kwara State Government is yielding dividends and the farmers have opened talks with some corporate bodies on the sale of their products amidst the reluctance of banks to rise to the occasion, reports Festus Akanbi
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SHONGA FARMS OPEN TALKS WITH WAMCO, IITA ...
Banks Develop Cold Feet on Agric Funding A
s the Central Bank of Nigeria (CBN) continues to count the gains of the recent banking sector reforms, it is obvious that operators in the agricultural sector of the economy are not exhibiting the same level of enthusiasm on the intervention that has continued to re-order the sd1eme of things in the economy. Industry operators said the serious liquidity problem trigge red by the erosion of capital bases of SOme of the banks that were found wanting aIter the CBN special audit of last year has compelled some banks to shut their doors against farmers. Another set of farmers bearing the brunt of the banks' decision to red uce their spending on agriculture are the white farmers in Shonga Farms, Kwara State. Some of the farmers That spoke with THJSDAY in Shonga Village, norin, last week, said they have begun to attract patronage from some corporate bodies in recent tin1es. The list includes Intemational.mstitute of Tropical Agriculture, (nTA), WAMCO Nigeria Pic, and Tasty Fried Chicken, among others. . However, THISDAY meeks showed that some of the . banks that signified their intention to I?rovide financial backbone for the large scale farming project being undertaken by the white farmers in Shonga were seriously affected by the CBN intervention last year. Apart from GTBank, whim was among the first set of banks to be given a dean bill of health, others like Intercontinental Bank, Bank PHB, Finbank and Unity Bank were affected in one way or the other by the intervention of the apex bank. Given the serious pressures being mounted by the CBN and shareholders of the affected banks, there were indications that attention is being shifted on sectors that guarantee immediate returns. One of the white farmers, Graham Hatty of Hatty Farms Limited, Shonga, told THJSDAY that at the initial stage of the project, banks were enthusiastic. He said the situation is diHerent now as efforts to raise more funds have not been given favourable consideration. But analysts suggested that banks' alleged reluctance to disburse funds for agricultural projects may be as a result of lack of adequate information on what the farmers really
need. For iristance, Graham said while it is ' true thar banks, whim owned substantial percentage of the holdings, released 路funds at the initial stage of the project, they have not been forthcoming with sum regulanty as expected by the farmers.
"It IS true that we were gwen some faCIlities, but I need more to enable me plant other farm products As earn-season roUs 111, we need to plant new crops I need more money although I will still ensure to meet pay-
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