Grain farmers say about P100 million in unpaid BAMB bills is pushing them deeper into debt and threatening preparations for the 2026/2027 planting season.
GAZETTE REPORTER
Botswana’s grain farmers are warning of another financial crisis, with the Botswana Agricultural Marketing Board (BAMB) owing producers approximately P100 million as they prepare for the 2026/2027 production season.
The Botswana Grain Producers Association (BGPA) and the Pandamatenga Commercial Farmers Association (PCFA) said farmers are approaching the September 30 deadline to settle seasonal production loans without certainty over when outstanding payments will be made.
The associations acknowledged efforts by BAMB’s new leadership to stabilise the organisation, but said the institution needs decisive government support and recapitalisation to address long-standing structural problems.
“BAMB’s new leadership can only succeed with the full and decisive support of Government,” the associations said.
Payments Delayed
Farmers delivered grain to BAMB from April 2026 and some have now waited as long as four months beyond the contractual 30-day payment period, according to the associations.
They said the delays are forcing producers to continue carrying debt and accumulating interest on loans used to finance production.
“Farmers who delivered grain to BAMB should NOT continue to accumulate interest and penalties on their production loans because BAMB has not paid them,” the associations said.
NDB has extended the loan repayment deadline to the end of October 2026, but farmers have been advised that the interest rate will increase by 1 percent for the additional month.
The associations said this shifts the financial cost of BAMB’s delayed payments onto farmers. They cited one Pandamatenga farmer who had paid approximately P3.8 million in interest attributed to the delays.
Price Uncertainty
The groups also raised concerns about uncertainty over the sorghum producer price during the 2025/2026 season.
BAMB initially announced a producer price of P3,850 per metric ton in November 2025. Farmers later sought to renegotiate the price, citing production costs and a market-related price of approximately P4,250 per ton.
A revised price of P4,300 per ton was only confirmed by BAMB on July 6, 2026, after farmers had already started delivering harvested sorghum.
The associations said farmers had therefore committed capital, planted and harvested crops while the producer price remained unresolved.
Planting Threat
The financial pressure is also raising questions about the financing of the coming production season.
Farmers are concerned that NDB may again be unable to release 2026/2027 seasonal input loans until BAMB pays farmers and those farmers repay their outstanding loans.
The associations said that could leave producers without the cash needed to buy inputs and prepare for planting.
They are calling for a national crop plan and stronger coordination between farmers, BAMB and millers so that production, financing, procurement and market demand are planned as one value chain.
They also want clarity on the Agricultural Credit Guarantee Scheme following flooding in Pandamatenga during the 2025/2026 season.
The associations said farmers remain committed to working with BAMB and Government, but stressed that the outstanding issues must be resolved before the new production cycle begins.