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Zim's ‘drowning’ farmers plead with Mthuli Ncube

FARMERS have pleaded with Finance minister Mthuli Ncube to boost agricultural funding and offer tax breaks in the upcoming mid-term budget review.

Zimbabwean farmers are struggling with numerous challenges, including high production costs, heavy taxation, expensive financing, inadequate irrigation systems, uncertain land ownership, climate change, and other issues, making their operations difficult.

Exporting agricultural businesses are also required to surrender 25% of their export proceeds to the Reserve Bank of Zimbabwe (RBZ) in exchange of the local unit.

“If possible, the agricultural budget (should) be increased in line with Maputo (declaration) that the agricultural budget be at least 10%,” Zimbabwe Commercial Farmers Union president Shadreck Makombe told Standardbusiness.

“If need be, we have subsidies or some support to that effect considering that this year it was declared to be a disastrous year in terms of effect from El Niño. "So, if the government can mitigate through the midterm budget it will be great.”

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Makombe also pleaded for a reduction in taxes levied on farmers.

“As farmers, we would wish and hope for slashes or cuts in taxes,” he said. “The farmer is the most taxed person.

“For example, livestock (levy). "At the same time, the inputs to our productions are heavily taxed and so forth.

“So, you would find that a farmer is between hard ground and a rock. Some of these taxes, if they can be done away with, may assist the farmers.”

Farmers are required to pay various taxes and levies, including local government taxes, tobacco and livestock levies, auction fees, and sustainability compliance charges.

These fees are deducted from the gross value of their produce sales, and include a government tax, industry levies, and ministry deductions.

Additionally, farmers must pay taxes for sustainable land management practices like reforestation.

Agricultural expert Edward Dune emphasised the need for improved government service delivery to farmers.

“We expect sustainable and efficient service delivery in terms of prompt payments for produce delivered, dipping cattle and agricultural extension,” Dube said.

“Government should remunerate its workers who in turn are expected to deliver competent services.

“There is also availing for vaccines and antibiotics for controllable and zoonotic diseases which have been a severe threat to animal husbandry.”

Zimbabwe Tobacco Growers Association president George Seremwe called for measures to address the high cost of tobacco production in the sector,

“We expect the government to take measures on the reduction to address the cost of production in terms of inputs of tobacco production.

“We are hoping for some stimulus packages as well,” Seremwe noted.

“We expect the government to support the production of tobacco. I think if we work on the input subsidies, thereby automatically to reduce the cost of production and will be very happy.

“We think the farmers should be paid timeously so that they get motivated and also get funds to retool and go back into the field. Those are the things we expect to be addressed.

“Fuel is also covered in the inputs if we can have some incentives on the fuel we use for our agriculture purpose so those are the things, which we expect to be addressed by the midterm policy.”

Seremwe also stressed the importance of a stable exchange rate to ensure that the farmers receive fair value for their exports. He acknowledged the stability of the news currency.

“The new currency, ZiG, has been stable and I hope it will still remain stable to make sure that we get value for our money,” he said.

“The exchange rate should remain stable and continuously so that when we sell our products in whatever currency we are safeguarded against any losses.”

Finance minister Mthuli Ncube is expected to present the 2024 mid-term budget statement in Parliament on Thursday.

minister Mthuli Ncube Shadreck Makombe