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tufton

… Government has $250 million to lend

Denise Reid, Hospitality Jamaica Writer

The Government has $250 million in funds to lend to farmers at a rate of seven per cent, said Agriculture Minister Dr Chris Tufton in an interview with Hospitality Jamaica.

The funds have been made available by the Development Bank of Jamaica (DBJ) and is accessible through the People's Cooperative banks, credit unions and other micro-financing institutions, he said.

The initiative comes at a time, he said, when the Government has augmented its interest in assisting in the development and modernisation of agriculture, the agro-industrial and tourism sectors. "The prime minister announced a further $1 billion for small business developments and agriculture at a slightly higher interest rate of 10 to 12 per cent," said Minister Tufton.

business plans

Giving a brief explanation of the process through which farmers may access these loans, Neville Lindo, loan officer at the Development Bank of Jamaica, explained that in order to get the monies, individuals need to furnish their local commercial banks, credit unions and people's co-operative banks with business plans.

These business plans, he said, must detail a marketing plan, how many acres the farmer expects to utilise. He further went on to say that the Development Bank of Jamaica would fund 70 per cent of the cost of the project, while the borrower is expected to come up with 30 per cent.

In a budget presentation earlier this year, Minister Tufton spoke of various measures being undertaken by the Government to add momentum to the agricultural sector.

Among these, he spoke of an initiative by the Planning Institute of Jamaica, which is currently working with the Caribbean Development Bank to access $8 million at two per cent, with a 30-year payback period and moratorium of 10 years.

When this plan materialises, it is expected that the funds will be channelled through the DBJ for technology-driven programmes, including agro-processing.