FileThe JAS had proposed a one per cent increase in the duty on a limited number of imported foodstuffs effective February 2002 to pay for the programme.
Balford Henry, Senior Staff Reporter
THE effect of the Government's decision to increase its recurrent allocation to the Jamaica Agricultural Society (JAS) by $23 million, seems to have been misunderstood by many people and, suprisingly, a large number of farmers, too.
The fact is that while the decision to increase this year's allocation to $40 million should ease the society's financial situation somewhat, it will certainly not help in terms of the proposal to introduce an anti-praedial larceny programme, nor will it help the society's proposed agricultural development programme and will only slightly help in adjusting its current debt situation.
The JAS received $26.5 million in 2000/2001 and $25 million last year, later reduced in the supplementary estimates to $17.7 million. That was only enough to cover the salaries, travel expenses and subsistence for employees.
Over the past two years, the society has been working on an agricultural development plan/agricultural credit fund aimed at: funding a praedial larceny initiative; improved marketing of crops; extensive training of small farmers; a public awareness campaign; and a tillage programme, including the absorption of some 350,000 acres of land into agricultural development and providing tractors and other equipment, not readily available to farmers, on a loan basis.
Marketing programme
The marketing programme, called the Centralised Agricultural Marketing System (CAMS) with the JAS and the Agricultural Development Corporation (ADC) as equity partners, was designed to purchase quality fresh produce from local farmers, including those on the JAS's 50,000 acres, using the existing Agricultural Marketing Corporation (AMC) plants as collecting points. The market would include exporters, retailers, wholesale distributors, higglers and hotels.
It was proposed to form a registered limited liability company, principally located at the AMC's complex at 188 Spanish Town Road.
Financial projections indicated that the venture could be profitable, with net profit before tax of $13.4 million. However, in the first year of operation it would need $57.4 million in working capital.
The JAS had actually started searching for a top line CEO, who would be paid in the region of $3 million annually, to recruit and organise a formidable administrative team around him capable of taking on the project.
The tillage aspect would involve the purchase of tractors and other equipment not easily accessed by farmers, for loan to members as well as the employment of hundreds of young people to work on the acreage already identified to produce foodstuff for marketing through the new agency.
The main proposal though was for the anti-praedial larceny programme, estimated to cost $75 million per annum, at least, in its initial stages.
It would have involved the employment of wardens, who would check vehicles, etcetera, carrying farm produce. The driver of the vehicle would have to produce a receipt for the produce from a registered farmer, or the goods would be confiscated by the police until proof of purchase could be verified.
Proof of purchase would be verified through the farmer's number on the receipt. RADA has already provided a registered number for every identifiable farm in the country, which would be on all receipts given out by that farm so its produce can be easily verified. The receipt books were to be available from the JAS.
In addition, both the Trespass and Praedial Larceny acts have been amended to increase penalties and the Produce Act was to be amended to allow for the receipt book system.
The society had been working with the Ministry of National Security on the programme for the past two years. The police had assigned Assistant Commissioner of Police, Reggie Grant, as co-ordinator of the programme. ACP Grant said last week that he is only awaiting the disbursement of the funds to get the programme started.
The JAS had proposed a one per cent increase in the duty on a limited number of imported foodstuffs effective February 2002 to pay for the programme. The idea was taken to the Jamaica Chamber of Commerce (JCC), the Jamaica Hotel and Tourist Association (JHTA) and even the Planning Institute of Jamaica (PIOJ) which assessed its impact on the cost of living.
The Cabinet was impressed with the proposals to rotate the society's wheel of fortune towards eventual self-sustenance, as well as the opportunity to reduce praedial larceny, provide rural employment and reduce rural-urban migration.
The Cabinet was so impressed, it seemed, that they suggested that instead of the JAS waiting on the cess to produce funding, it would kick-start the programme with an injection of $100 million in seed money this year, to be eventually repaid by the cess.
Huge debts
The Cabinet also assured the JAS that it would also increase its annual recurrent allocation over the three years 2002/2003 to 2004/2005 to $50 million, annually. A portion of that allocation would help the JAS pay off some of its huge debts.
The JAS seemed so assured of this programme kicking off this year, that its leaders started touring the island, impressing on farmers the importance of the initiative and announcing dates for the start of the various aspects including a May 2002 start for the praedial larceny programme.
But, all that changed on April 10.
The farmers gathered at their Church Street, Kingston, headquarters for their monthly board meeting. The highlight was to be the official launch of Farmer's Month by Minister of Agriculture Roger Clarke.
The Minister was also expected to make the grand announcement that a total of $150 million was included in the budget to cover both the recurrent and the capital programmes. But, disappointment was in store.
Mr. Clarke came with the startling and bad news that not only was the Government not allocating the $100 million for the development programme, but that the recurrent allocation would actually be reduced to $17 million this year. The JAS has monthly housekeeping expenses of approximately $2 million.
There would be no one per cent cess of agricultural imports and the praedial larceny project would have to be dealt with through the Ministry of National Security.
One could hear a pin drop.
It was left to JAS vice-president Trevor Dewdney, a candidate for the People's National Party (PNP) in West Central St. Catherine in 1993 and the chief proponent of the anti-praedial larceny proposals, to formally respond.
Dr. Dewdney suggested that the Government's behaviour showed a "lack of respect and regard" for the farmers.
He noted that the JAS had followed the rules, only to be shafted in the end. "We are not going to sit down and accept this," he said. He suggested that the farmers may have to take to the streets and block the roads with their tractors and pickaxes.
The JAS has been seeking since then to have the Government change its mind. Its President, Bobby Pottinger, has been meeting with both Mr. Clarke and the Minister of National Security, Dr. Peter Phillips.
Mr. Clarke told Parliament on Wednesday that $23 million had been added to the recurrent funds, bringing it up to $40 million, still $10 million short of the projected $50 million. But, there was still nothing for the agricultural development fund and the praedial larceny initiative.
No funds allocated
Mr. Clarke also suggested that the praedial larceny initiative would be delivered through the Ministry of National Security. But, there are no funds allocated to that Ministry in the budget to finance it.
According to Mr. Pottinger, farmers have been losing an estimated $3 billion annually to praedial thieves. He says that farmers are refusing to even pay the $200 per year dues the society charges them, until the JAS can come up with a programme to deal with praedial larceny.
It took the JAS executives 18 months criss-crossing the country to sell some 90,000 farmers the idea. This was followed by the meetings with the Cabinet, the Chamber of Commerce, the JHTA and the PIOJ.
Mr. Pottinger says he was stunned by the Minister's announcement that "strong lobbying" against the cess had resulted in the Cabinet's eventual decision to drop the idea.
He said that the only concern raised during the discussions with various bodies came from the Chamber of Commerce, who had some doubts about how it would affect the cost of living. However, they felt that greater good would come out of the proposal and the PIOJ confirmed that the effect would be minimal.
The JAS president has been talking to Dr. Phillips, who has promised to do whatever he can to get the praedial larceny project off the ground. But, one thing is sure, it won't be the $75 million programme which the farmers had in mind.
The lack of funds for the marketing and tillage aspects of the programme, will mean that plans by the JAS to raise itself to a level of self-sufficiency, has been set back indefinitely.
One would have thought that it would have been a lot cheaper to help the JAS get started on the way off the budget and to get its own praedial larceny project going so that an overburdened police force could concentrate on guns, drugs and criminal gangs. But, it would seem the Government doesn't think so at all.
