Minister Green Urges Lenders to Extend Credit to Small Farmers

• Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, is calling on financial institutions to re-evaluate their lending practices to the agricultural sector, urging increased support for small farmers and entrepreneurs.
• “I am imploring our financial institutions to recognise the significance of supporting our farmers and the agricultural sector as a whole and extend a helping hand through the provision of more credit,” he said.
• The Minister was speaking at the Development Bank of Jamaica’s (DBJ’s) Credit Enhancement Facility (CEF) Superstars Awards on Wednesday (August 14) at the Courtyard Marriott in Kingston. The agricultural sector makes up 15% to 20% of Jamaica’s labour force and is also a significant income earner for the country.
• Currently, agriculture accounts for about 8.3% of Jamaica’s gross domestic product (GDP) and the Ministry is looking to enhance the sector’s contribution to economic growth. A large part of agriculture’s income-earning potential lies in its export opportunities. For example, Jamaica earned US$50.4Mn in 2023 through the exportation of yam, a historic achievement for the island.
• In highlighting the challenges faced by farmers, Minister Green said, “A lot of primary producers want to get into agro-processing but lack the capital to do so. Similarly, there exist ripe export markets and a growing need for climate-smart technologies, evidenced by the devastation brought about by Hurricane Beryl. However, these areas are very capital intensive and, without access to financing, cannot be truly developed.”
• In addition, he said, there are a lot of farmers who aspire to utilise more technology in their enterprises but they lack the financial mechanism to attain these resources. Minister Green noted that financial institutions tend to prioritise lending to larger and more established entities, overlooking the potential and needs of farmers and small businesses. “We have to develop ways that we can lend a hand without much fear of being disadvantaged”.
• CEF aims to increase access to credit for MSMEs, providing Approved Financial Institutions (AFIs) and Micro Finance Institutions (MFIs) with additional collateral coverage on loans extended to MSME operators. This collateral coverage serves to mitigate risks for the AFIs and MFIs, enabling them to extend credit to a wider range of MSMEs, foster business growth and economic development in the country.

(Source: JIS)