NewsWhore
03-01-2012, 01:10 PM
Bean farmers in San Juan de la Maguana are facing a series of problems from three different sources. According to Diario Libre, they have problems with imports, intermediaries and the government. Imports have driven down prices and depressed the market. The intermediaries are both the financiers as well as the buyers of the crop and the government "assistance" is often too little, too late or totally absent.
Farmers of this traditional crop in the San Juan Valley need tractors to till the soil before planting. The government offers tractors, but will not provide fuel for them. Instead of doing all the work on one farm before going to another plot of land, the government tractors, when they come, only provide one plowing and then the farmers have to contract local tractors for the rest.
Money, of course, is a major factor. It can come from any one of two sources: The Agriculture Bank or the intermediaries. The Ag Bank charges 18% interest per year, but requires good credit. The intermediaries charge 5% a month interest (60% a year) but they are not so picky, since they hold the crop as collateral.
Finally, the government, which is represented by the Ministry of Agriculture, the Agriculture Bank and the Institute for Price Stabilization (Inespre), also constitutes one of the big issues.
The Ministry's tractors do not fulfill the complete task, the Agriculture Bank has many requirements and Inespre does not pay its bills.
According to the El Campito Cooperative, Inespre owes them money from the harvest three years ago, and as a result the coop cannot finance on soft terms any of the more than a thousand farmers who belong to the coop. The payments check from Inespre, for over RD$700,000, bounced last year due to a lack of funds.
Finally, the intermediaries say that they have millions worth of beans in warehouses, but they cannot sell them because imports from the United States have flooded the market and depressed prices.
More... (http://www.dr1.com/index.html#8)
Farmers of this traditional crop in the San Juan Valley need tractors to till the soil before planting. The government offers tractors, but will not provide fuel for them. Instead of doing all the work on one farm before going to another plot of land, the government tractors, when they come, only provide one plowing and then the farmers have to contract local tractors for the rest.
Money, of course, is a major factor. It can come from any one of two sources: The Agriculture Bank or the intermediaries. The Ag Bank charges 18% interest per year, but requires good credit. The intermediaries charge 5% a month interest (60% a year) but they are not so picky, since they hold the crop as collateral.
Finally, the government, which is represented by the Ministry of Agriculture, the Agriculture Bank and the Institute for Price Stabilization (Inespre), also constitutes one of the big issues.
The Ministry's tractors do not fulfill the complete task, the Agriculture Bank has many requirements and Inespre does not pay its bills.
According to the El Campito Cooperative, Inespre owes them money from the harvest three years ago, and as a result the coop cannot finance on soft terms any of the more than a thousand farmers who belong to the coop. The payments check from Inespre, for over RD$700,000, bounced last year due to a lack of funds.
Finally, the intermediaries say that they have millions worth of beans in warehouses, but they cannot sell them because imports from the United States have flooded the market and depressed prices.
More... (http://www.dr1.com/index.html#8)