The National Assembly approved a bill that establishes that by 2024, 100% of the resources retained by the Special Interest Compensation Fund will go to the agricultural sector.
The Special Interest Compensation Fund (Fondo Especial de Compensación de Intereses, FECI) is fed by the 1% tax levied on the granting of all loans exceeding five thousand dollars in both commercial and consumer banks.
A bill is being discussed in Congress to facilitate financing for producers and to support them in certifying the quality of their plantations.
Because of the complex scenario faced by African palm producers because of low international prices, the Hernandez administration presented to Congress the bill "Law for the Strengthening of the Productive Sector of Oil Palm."
Facilitating credits for producers, as well as encouraging the production and marketing of honey, are some of the plans that the Salvadoran authorities have for the coming years.
The Ministry of Agriculture and Livestock (MAG) will implement the 2019-2028 Beekeeping Sector Policy, which was developed by the productive sector in the National Beekeeping Table, with financing from Swisscontact and the Inter-American Development Bank (IDB), through its innovation laboratory BID-LAB, informed an official source.
Producers in El Salvador asked President-elect Nayib Bukele to manage financing for the renovation of the farm, create a research center and protect the sector by regulating imports.
Through a letter sent to the president-elect on March 18, the Asociación Cafetalera de El Salvador (Acafesal) raised the need for $200 million in funding to renovate the coffee park.
In order to deal with the difficulties caused by the low international price of the grain, the Honduran government plans to make resources available to 120,000 coffee producers.
The Honduran presidency reported through a statement that one of the decrees, approved by the National Congress at the proposal of the Executive, creates the Special Guarantee Fund for the Coffee Sector with an initial contribution of 300 million lempiras ($12.7 million) from the Honduran Bank for Production and Housing (Banhprovi), which will provide 2,400 million lempiras ($101.9 million) in reciprocal guarantees, which will serve to propitiate operations of twice that value ($203.8 million).
The IDB has approved a loan to finance projects related to the improvement of market connectivity for small agricultural producers and the application of agroforestry technologies.
The Inter-American Development Bank (IDB) reported that "... Through a loan of US $150 million, the Dominican Republic will work on the adoption of agroforestry technologies and improvement of connectivity to agricultural markets to increase incomes of small producers, and increase environmental sustainability and adaptation to climate change through the best management of natural capital."
The Agricultural Bank has set up a fund of $8.1 million, which will be used for the execution of several cocoa production projects in different parts of the country.
Through a statement issued by the Ministry of Agriculture, the head of the institution, Osmar Benítez, explained that "... the Agricultural Bank has disposed of a fund of 400 million pesos ($8.1 million) to execute several projects to boost cocoa production in the country."
$14 million will be allocated to renovating 50 thousand hectares of coffee plantations, with varieties less vulnerable to climate change and more resistant to diseases such as rust.
The head of the Colombian Ministry of Finance reported that "... a consignment of 39 billion pesos ($13.8 million) was approved for the renovation of coffee plantations. 150 pesos ($0.05) will be paid for each renewed tree, either by sowing or offshoots, resources that will be enough for the renewal of 253 million trees; that means 50 thousand hectares that can be renewed."
In Costa Rica, a new bill has been presented to grant resources at a preferential rate to producers, aimed particularly at the smaller ones.
According to the bill, which received a positive ruling in committee and now must go to the Plenary, the fund will be financed by a contribution of 5% from the liquid surplus of the Coffee Institute of Costa Rica (Icafé), resources from the Ministry of Agriculture and Livestock and funds recovered from the Trust Fund for Coffee Producers Affected by Rust and the Coffee Plantation Renewal Plan.
With a loan from the IDB, the Agricultural Company El Siglo will finance cultivation of 475 hectares of banana, a production which will be used for export.
The financing granted by BID Invest will allow the company to leverage its operations and develop more growth in less time.It is expected that at least 475 rural direct jobs will be generated, which is equivalent to one direct job for each hectare planted.
The Agricultural Development Bank has $14 million to use for financing the purchase of livestock and bulls created through artificial insemination, with an interest rate of 2%, a term of 15 years and with collateral.
The Ministry of Agricultural Development (MIDA) reported that the goal of this financing is to repopulate male and female livestocks, and also seeks "...
Lack of irrigation on most of the country's arable land is preventing farmers from accessing bank financing to increase the productivity of their crops.
Regarding the financing that is currently granted, Luis Rivas Anduray, CEO and director of Banpro Grupo Promerica, explained to Elnuevodiario.com.ni that "...Banks finance only 10% of the country's arable areas. This 10% are the products that generate the most foreign currency for Nicaragua, such as coffee, sugarcane, etc., but there is another 90% of the area that can be financed, in which banks do not get involved, due to the credit risk that this constitutes. Therefore, when you have irrigation, the risk is substantially reduced."
Agricultural exports totaled $4.7 billion in 2016, equivalent to 45% of the total amount exported by the country, and grew by 7% compared to 2015.
The most recent Agricultural Statistical Bulletin (№ 27), by the Ministry of Agriculture and Livestock, provides detailed information on the main indicators, area and production, prices, foreign trade, credit granted to the sector, wages, public expenditure and employment.
The government has announced a credit line of $7.4 million for the production of sheep, at an interest rate of 7.25%.
The Ministry of Economic Development (SDE) reported that a credit line of L167 million ($7.4 million) is now available for sheep production. The announcement was confirmed by Arnaldo Castillo, head of the institution, reported Laprensa.hn.
The Ministry of Finance announced that $20 million will be made available for lending to the sector, with priority being given in the first stage to producers with planted areas measuring between 3 and 20 fields.
The National Commission for Transformation and Development of Coffee Plantations (Conatradec) announced that funding will be for up to 7 or 8 years, with a three year grace period, at an interest rate which will be discussed next week, along with the financing plan for coffee growers.
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