IPED approves $4M in loans to peanut farmers
By Nicosia Smith
Stabroek News
June 18, 2004
Peanut production in Region Nine is set to expand as farmers receive vital loans from the Institute of Private Enterprise Development (IPED).
In December, officials from IPED had stated that this year several peanut farmers would be given loans to take advantage of the consumption tax waiver granted to products made from local peanuts.
Shaun Persaud, the hinterland development officer for IPED noted that so far 50 small loans valued at $4M were given out benefiting at least 60 families.
Although the C-Tax waiver was agreed to over a year ago the customs department and the companies which use local peanuts are working out the necessary arrangements to begin implementing the waiver, says Geoffrey DaSilva, director of the Guyana Office for Investment in a recent interview.
IPED up to last December had lent $22.6M to 56 small and micro businesses in the area and now has approximately 159 clients.
Apart from the peanut farmers, three large loans valued at approximately $12M were given to three businesses in the region to buy peanuts.
An average of three acres of land was given to each small farmer and an extra 200 to 300 acres in the North, Central and South Rupununi are now under peanut cultivation.
In the North Rupununi the farmers prefer to plant in the savannahs where it was found that the yields are substantial.
While in the South Rupununi peanut farmers prefer planting in the forest because they are accustomed to slash and burn agriculture. In addition, the south is known for its cattle rearing and it is felt that if planting commences in the savannahs the cattle would damage the crop.
Moreover, forest farmers do not need to use the chemicals required to farm in the savannahs. Approximately 1800 to 3800 lbs of peanuts per acre can be harvested planting in both the forest and the savannahs.
But Persaud notes that IPED has encouraged the forest farmers to switch to the savannahs in order to promote forest conservation.
He says recent heavy rains have not affected crops since planting is completed by the end of March or in early April and harvesting begins from September through November.
Sectors such as honey production, sheep rearing, aquaculture and cattle rearing are also set to receive loans from IPED with six loans valued at $1M already approved for six mutton producers.