Nine large investors have been given the all-clear by the Ministry of Food Production to cultivate 2,700 acres of state lands across the country. The move is expected to help reduce the country's food import bill from $4 billion to $2 billion, a target set by Finance Minister Larry Howai for 2015.
In delivering the 2012/2013 budget, Howai stressed that achieving food security was a top priority for the People's Partnership Government. Howai noted with concern that an increase in imported food has had a negative impact, particularly on the most vulnerable as they sought to manage the business of their everyday lives.
Howai said the Finance Ministry, through a competitive process, was actively distributing to the national farming community standard leases for small and large farms. Speaking at the Ministry of Food Production office in St Clair last Thursday, Nigel Grimes, co-ordinator/adviser of the commercial large farms programme, said the role of the large farms will not be the solution to our food production issues.
He said, "I don't want people to have the perception that the large farms is the solution to our food production issues. The large farms will deal with issues of import substitution and to get volume and quality that is required for agro-processing. There is a role for the large farms."
The farms, Grimes pointed out, will also help T&T obtain food security and bring returns for taxpayers. He made it clear that farming is not a fast-return business, but one that involved risks. Insisting that the farms will assist in slashing the food import bill, Grimes, who is charged with the responsibility of ensuring the farms reach their optimum potential, said the ministry was moving apace to get the projects off the ground.
An agronomist, Grimes believes that by 2013 all nine investors would have acquired the necessary approvals such as certificates of environmental clearance from the Environmental Management Authority and permission from the Water and Sewerage Authority, Town and Country Planning Division and Fire Services.
"One of the major bugbears with the programme is that you have to ensure that the farms obtain all the necessary approvals. There is an approval gap. What we have done was give farmers provisional leases to accelerate production." The investors' leases will be formalised by the Attorney General.
Last November, the ministry sent out a request for proposal of the leasing of commercialfarms in Trinidad for agricultural investment, development, management and operation on eight state sites. The farms at Orange Grove, Bejucal, Felicity, La Gloria, Picton, Mora Valley and Tucker Valley will be provided with the necessary infrastructure such as agricultural access roads, electricity and drainage by the State.
Among the crops identified for large scale production in the next 18 months are rice, livestock production, vegetables, root crops, fruit crops, plantain, pumpkin, watermelon, papaya, aquaculture, hot peppers and seasoning peppers, cassava, coconuts, banana, American slicer tomatoes, guava, orange, mango, passion fruit, onion, carrots, green string beans, cantaloupe, sweet corn and dwarf bodi.
The investors, all of whom are T&T nationals, had the option of forming joint ventures, partnerships or other legal arrangements. The current policy arrangement allows the investor a 30-year commercial agriculture lease which can be extended for similar periods as long as the land is utilised for the purpose it was granted and the lease payments are made.
Surplus to be exported
The annual rental lease payment is $500 per acre. Grimes said the State will have little or no cost in getting the farms up and running as expenses in machinery, chemicals, fertilisers and seedlings must be borne by the investor. He said the investors will use scientific technology, promote sustainability and not compete with the small farms. Crops that are grown on the land will be sold to Namdevco with its surplus being exported.
In 2008, Tucker Valley Farm in Chaguaramas was financed, operated and managed as a model commercial farm by the Chaguaramas Development Authority. Millions was spent on the 100-acre farm, but citizens did not reap any benefits. Today, the farm, which was reassigned to the Ministry of Food Production by Cabinet in 2010, has been used as a pilot project for onions which were sold to businesses in the fast food industry and supermarkets.
The ministry also intervened to accelerate the commissioning of the Evergreen Ranch Ltd, Two Brothers Farms in Warrenville, Edinburgh Farms and Technology Farms in Orange Grove in the last few months. The Edinburgh Farm is a venture between Caribbean Chemicals, Five Star Farms and the Ministry of Food Production. Technologies Farms in Orange Grove, owned by Balliram Maharaj (ADM Distributors) and the T&T Agri-Business Association, has a licence to operate.
52 land investors
Grimes said the programme aims to have 15 farms that will achieve an increase in domestic agricultural output through local and foreign entrepreneurship, employing state-of–the-art technologies. Following the proposal of the new sites, Grimes said 52 investors applied for use of the advertised lands, which ranged from 44 to 241 acres.
The list was evaluated and then short listed to nine investors who were deemed to be financially stable and could effectively manage the farms on their own. The first proposal for investors in 2007 was issued under the People's National Movement and attracted people locally and internationally.
However, the second proposal focused only on local investors. Picton in south Trinidad has over 1,200 acres with five large farms. The largest farm is 267 acres. A large farm can range between 50 to 300 acres. With 12 large farms located on eight sites across the country, Grimes said the country will see an increase in a number of crops.
The aim of the farm, Grimes said, is to grow commodities that are not traditionally cultivated in T&T for processing and to create value-added products. For the sector to thrive, "we must be open to recognising agriculture as a business." By 2015, Grimes said, T&T must be able to produce 20,000 tonnes of processed rice annually.
In the last four months, over 400 acres of rice were cultivated in Plum Mitan, as Government moves to revamp the sector which plummeted over the years. "This will significantly reduce the 33,000 tonnes of rice we import and consume annually." Grime said they also want to cut back on wheat imports by 40 per cent, using cassava flour and root crops substitutes instead.
Beyond 2015, Grimes said, rice should be eliminated from the import list. He believes the farms will ease the burden on the consumers' pockets in the coming months. Asked if certain crops will be put on the negative list when the farms reach production targets, Grimes said, "That is a matter we will be engaging the Ministry of Trade and Food Production and our ministry once we reach the levels of production."
