The Pandamatenga Commercial Farmers Association (PCFA) has welcomed progress by the Botswana Agricultural Marketing Board (BAMB) in settling outstanding grain payments, but says a national crop plan is urgently needed ahead of the new planting season.
Association vice-chairman Ryan Neal said BAMB had paid P60 million towards outstanding payments, leaving about P40 million still owed.
Farmers owed P400,000 or less have been paid in full, while those owed more than P400,000 have received 57 percent of their outstanding balances.
‘We welcome this progress and recognise the efforts of BAMB’s Board and Management to address the outstanding payments,’ Neal said.
He said settling the remaining balances was important as farmers met previous-season obligations while preparing to invest in the next crop.
Neal said farmers needed clarity on crop requirements, market demand and producer prices before making planting decisions.
‘Without a coordinated National Crop Plan, farmers are once again expected to commit substantial capital, take on production loans and carry the risks of farming without sufficient certainty about the market for their crops,’ he said.
He called on BAMB, the Ministry of Lands and Agriculture, producers and other stakeholders to develop a plan in consultation with farmers.
The plan should identify required crops, market capacity and expected producer prices, and be communicated early enough to influence planting decisions.
The association warned that uncertainty over demand could expose farmers to financial risks, given the upfront costs of inputs, machinery and labour.
Delayed payments can strain cash flow when proceeds from one season are needed to repay production loans and finance the next.