Govt to spend N$40m buying farmers’ surplus grain

Government will fork out N$40 million to purchase surplus grain from Namibian farmers to boost the country’s strategic food reserves, Prime Minister Elijah Ngurare told the National Assembly last Wednesday.

Ngurare disclosed the details while responding to an urgent oral question from Popular Democratic Movement leader McHenry Venaani, who asked how the state intends to distribute the money and ensure that individual crop farmers benefit.

Venaani welcomed the programme but questioned why the N$40 million in new assistance for crop farmers is being introduced while cattle and small-stock farmers are reportedly still owed N$36 million promised under an earlier drought-relief arrangement.

He said some livestock farmers have allegedly been waiting for between two and two-and-a-half years for payments after selling their livestock to the state.

“What action is your ministry or the prime minister’s office taking to make sure that we are paid our money as farmers?” Venaani asked.

“We are waiting for more than two, two-and-a-half years for that money,” he said.

Venaani also wanted to know when and how the N$40 million and the outstanding N$36 million would be disbursed.

He warned that the delayed payments had left farmers without the resources needed to prepare for another potentially damaging weather event.

In response, Ngurare said the N$40 million decision followed concerns that farmers who had produced surplus grain were struggling to find buyers, leaving some of their produce at risk of going to waste.

Government consequently decided to purchase the surplus stock and place it in the strategic food reserves. The grain would be released when Namibia experienced food shortages or other emergencies, he said.

Addressing the outstanding N$36 million in drought assistance, Ngurare acknowledged that the affected livestock farmers had waited too long.

Payments being processed

Addressing the unpaid N$36 million, Ngurare assured Venaani and other affected farmers that government intended to begin making the long-delayed payments once the administrative process had been completed.

 “It has really taken too long,” he admitted.

He said the matter had been discussed with Treasury and that the money would be sourced and channelled through government’s disaster-risk management directorate before payments were made.

The prime minister told parliamentarians that he had met disaster-risk management officials last week and emphasised the need to settle the outstanding claims.

He indicated that government wanted payments to start within a week, although he did not provide a specific date, identify the number of farmers who would benefit or explain how individual claims would be verified.

Ngurare said such delays should not be repeated and maintained that agriculture remained a priority for the current administration.

Individual farmers

In regard to the new N$40 million commitment, Ngurare said the finance ministry would make the payments directly as part of measures intended to strengthen accountability.

The Agro-Marketing and Trade Agency (Amta) has been tasked to coordinate procurement and remain in contact with millers and individual farmers holding surplus grain.

Ngurare said there was a perception that the grain would be purchased only from millers, but clarified that individual farmers with surplus produce would also be included.

Amta would therefore remain involved in the procurement arrangement despite the decision to have payments made directly through the finance ministry.

Ngurare did not provide a breakdown of how much grain government intended to buy, the prices that would be paid or how the N$40 million would be divided among farmers and millers.

He also did not provide the date on which purchases would begin or explain how individual farmers could register to sell their grain.