Grain farmers have received P60 million in overdue payments from BAMB, but P40 million remains outstanding as producers push for a coordinated national crop plan
BONGANI MALUNGA
Botswana Agricultural Marketing Board (BAMB) has paid P60 million towards outstanding debts owed to grain farmers, easing some of the uncertainty that had surrounded whether the parastatal would meet its end-of-October payment commitments.
However, about P40 million is still outstanding, leaving part of the farming sector exposed to cash-flow pressures as producers prepare for the new planting season.
According to the Pandamatenga Commercial Farmers Association (PCFA), farmers who were owed P400 000 or less have now been paid in full. Those with balances above P400 000 have received 57 percent of what they are owed.
SIGNIFICANT PROGRESS
The payments represent significant progress after farmers had previously faced uncertainty over whether BAMB would be able to clear its obligations by the end of October.
PCFA welcomed the latest movement, but warned that the remaining balances need to be settled quickly because farmers are still carrying costs from the previous production cycle while simultaneously trying to finance the next one.
“PCFA acknowledges the progress reported by the Botswana Agricultural Marketing Board (BAMB) regarding outstanding payments to grain farmers. P60 million has been paid, while approximately P40 million remains due,” the association said in a statement released last Friday.
“We welcome this progress and recognise the efforts of BAMB’s Board and Management to address the outstanding payments. The timely settlement of the balances remains critical as farmers continue to carry financial obligations from the previous season and prepare for the next.”
DEEPER STRUCTURAL PROBLEM
While the payment dispute is gradually easing, farmers are increasingly shifting attention to what they see as a deeper structural problem, the absence of a coordinated national crop plan.
With the planting season already underway, PCFA argues that producers still lack sufficient information on how much grain the country requires, expected market demand and the prices farmers can realistically expect when their crops are harvested.
The association says that without this guidance, farmers are being asked to commit millions of pula to inputs, machinery and production loans without adequate certainty that their harvests will find a viable market.
CLARITY NEEDED
“With the new planting season upon us, farmers urgently need clarity on national crop requirements, anticipated market demand and producer prices,” PCFA said. “Without a coordinated National Crop Plan, farmers are once again expected to commit substantial capital, take on production loans and carry the risks of farming without sufficient certainty about the market for their crops.”
PCFA is therefore calling for BAMB, the Ministry of Lands and Agriculture, commercial producers and other stakeholders to urgently develop a national production framework that gives farmers clearer signals before planting decisions are locked in.
“PCFA therefore calls for BAMB, the Ministry of Lands and Agriculture, producers and other relevant stakeholders to urgently prioritise a practical National Crop Plan, developed with meaningful participation by farmers and communicated in time to guide planting decisions.”