Lafise bank announced it has $5 million to provide 7 year term loans with one year grace to producers in Leon and Chinandega.
After the meeting in Chinandega with producers and representatives from the financial institution solutions that fit the needs of the sector, the effects of climate change and fluctuations in international prices have been agreed in regards to production.
With the construction of a new irrigation canal the aim is to increase agricultural productivity in a naturally dry area.
A new irrigation canal in the north, 34 kilometers long, will artificially irrigate some 8,600 hectares in the cantons of Cañas and Abangares allowing in order to promotoe the revival of production in this area and diversification. $15 million will be invested in the project and work is expected to start next March.
The Ministry of Agriculture aims to improve the productive capacity of the country through a policy of irrigation water management.
The initiative includes four components, among which is the creation of dams or reservoirs which store water during the rainy season for use in irrigation during the dry season.
"It's a big but strategic investment which the country needs to take in order to avoid a lot of problems due to climate change," says the Rural Economic Development Deputy Minister, Carlos Anzueto.
Panama's government has unveiled projects for supporting farming in order to encourage greater productivity, with a total cost of $211 million.
A statement from the Ministry of Agricultural Development (MIDA) reads:
Over $170 million will be spent on irrigation systems in productive areas of the country, about 33.5 million in producer support programs (Act 24, Act 25, Rural Pro and others), $6 million in direct assistance to small producers and over $2 million on Production Roads, which makes a total of $211.5, part of the investments being carried out by the Ministry of Agricultural Development (MIDA), in order to achieve the required productivity to achieve efficiency domestic production.
Costa Rica is preparing an international tender for a 34 kilometer extension of the "Canal del Sur", in Guanacaste, and 52 kilometers of secondary canals.
In approximately two months the administrative processes will be to completed allowing the National Groundwater Irrigation and Drainage Services (Senara in Spanish) to publish the tender for the redevelopment of the canal south of Arenal Tempisque Irrigation District (DRAT) which currently irrigates 27,000 hectares. The execution of the works to be tendered will add a further 8000 hectares of irrigation.
Within the Ministry of Agriculture’s investment plans for 2012 is the construction of an irrigation system in the Tonosí Valley.
$32 million have been earmarked for this project in the province of Los Santos and the preparations at the sterile fly production plant in Pacora, while the 2012 budget has increased by 35% compared to 2011.
According to an article in Prensa.com, "However, despite the increased funding, producers are skeptical about its use, because most of the projects planned in the past have ended up only existing on paper.