The Livestock and Agricultural Industry chamber unveiled a plan based on productivity, diversification, quality, environmental sustainability and food safety.
Otto Kuhsiek, president of CAMAGRO, noted that over 1.6 million jobs depend on agriculture, of which 81% are located in rural areas, half of them in family companies and the rest in large-scale, high productivity companies.
The Production Development Bank will earmark $ 21 million this year for financing the livestock sector.
Considering the announcement, the Federation of Livestock Associations of Nicaragua (Faganic), mentioned the sector's difficulties in getting loans approved.
"... Joaquín Lovo, CEO of Produzcamos Bank, said the delays in approvals are mainly because most farmers have not updated their deed records of their properties which are as bank guarantee," reported Laprensa.com.ni.
The Multi-sector Investment Bank announced the allocation of $ 50 million to finance the coffee sector.
The funding will be made through the BMI Hotline for Avio Café Financing: 2011-2012.
This funding is intended to continue contributing to the revival of the coffee sector and generate benefits for El Salvador, including employment in rural areas and a positive impact on the environment.
A law regulating the microfinance market would open the opportunity to capture savings that currently can only be done through cooperatives and banks.
The article by Byron Dardón in Capital.com.pa, reports that the bill on microfinance is expected this year and has the support of the Financial Inclusion Program of the Treasury of the United States, which promotes the adoption in Latin American countries of market governing rules.
Congress approved an extension for farmers and agro-industrial debtors so they can solve their credit problems.
Debtors have until March 31st, 2011.
Laprensagrafica.com reports "This new decree gives legal validity to approved legal recourses so that merchant trials against companies who operate under Cooperatives or Farmer Associations, can be suspended."
The state's farming ministry (SAG) has announced that resources will be made available to finance the country's food producing sectors.
Approximately $58 million is held in a trust managed by the Honduran Central Bank (BCH), provided by Petrocaribe, a Caribbean oil alliance with Venezuela.
La Tribuna reports comments from SAG viceminister, Juan Ángel Artica, saying that, "President Porfirio Lobo Sosa has authorized us to initiate projects that will benefit national agricultural by using funds from Petrocaribe. Not only will the funds go towards the rice sector but there will also be help for all food producers, since we have shortages of other grains too".
The extension granted by the bank to 2023, 2024 and 2025 for the payment of the Ficafé quotas has divided the coffee sector.
El Salvador's program for the rescue and reactivation of its coffee plantations, launched last May, seeks to defer repayment of the capital of the Ficafé quotas issued in 2010, 2011 and 2012 until 2023, 2024 and 2025 respectively. Ficafé is a refinancing trust for growers.
Costa Rica’s national coffee institute (Icafe) has agreed a credit line with the Ministry of Agriculture.
The program plans to renew 30% of the country’s coffee plantations over the next three years.
Edgar Rojas, Icafe sub-director, commented that the renewal program is the main focus of the institute currently, adding that, “every week we are in negotiations, meeting and reviewing details.
The investment, backed by the IDB and the World Bank, consists of various projects to support the farming sector.
The minister for the state's farming council (SAG), Jacobo Regalado, highlighted in particular the “Rural Competitiveness” project. This scheme will last six years, benefit seven departments and is aimed at helping the rural poor.
“Another $26 million is planned for an agricultural program called ‘Pro-business’ (Pronegocios) with funds going to the departments of Gracias a Dios, Colón, Olancho and El Paraíso”, continues Regalado in Laprensa.hn.
Development bank “Produzcamos” has $12 million available for livestock breeding loans, but it has only approved 5%.
Solomon Guerrero, from the Nicaraguan Breeders Association (Faganic), believes that the main problem is the long periods required to get a loan with the bank (almost two months).
He told Laprensa.com.ni that “such slow approval processes only worsen the situation.
Millions of dollars earmarked for developing banking are standing idle in Costa Rica, because of legal, administrative and financial oversight problems.
The very laws that created these credit instruments are the reason of their lack of use. They end up not fulfilling their role of providing low cost financing for small and medium companies.
One of the reasons is that financial entities are limited to an interest spread of 2% in the Development Banking System (SBD). This makes the market unattractive for banks: only $96 million are available for loans.
A number of coffee associations have reacted to the sector’s losses by requesting the activation of a $71 million Coffee Trust.
The National Coffee Association (Anacafé) agrees with the Federation of Coffee Cooperatives (Fedecocagua) that this is the optimal time for the government to activate this trust, after the eruption of Pacaya Volcano and Agatha tropical storm damaged plantations.
Faced with a reduction in crops, the Agriculture Ministry is negotiating a loan with BCIE.
$40 million would be used for planting basic grains and the remaining $10 would be used in financial support for growers.
"With the same purpose, the Institute of Science and Agriculture Technology (ICTA), will launch an improved corn seed, its main feature being that it contains 90% of the nutrients of cow milk", reports Sigloxxi.com.