Source: The Herald – Breaking news.
Dr Edson Badarai 
Edgar Vhera, Agriculture Specialist Writer
THE Grain Marketing Board (GMB) continues to oil the wheat value chain by paying out another US$5 million to farmers for wheat delivered in 2024, as preparations for the upcoming season reach fever pitch.
This was disclosed by GMB Chief Executive Officer, Dr Edson Badarai, in Harare yesterday.
“GMB has received US$5 million for wheat payments this week, bringing the total of the disbursed funds to US$23 million and Z$215 million. The board greatly appreciates all the efforts being put in place by Treasury to mobilise resources, as farmers prepare for the winter cropping season,” he said.
In a media release in September last year, the GMB said standard wheat would be bought at US$450 per tonne, with premium at US$470 per tonne.
The GMB also pledged to buy all wheat financed under the Presidential Input Programme (PIP) and from self-financed growers, wherein self-financed farmers would sell to the best advantage.
In addition, GMB has remained the buyer of last resort and is working with the Zimbabwe Mercantile Exchange (ZMX) to provide commercial warehouse receipt services to all players, with contractors expected to buy back contracted wheat at market price.
Zimbabwe Commercial Farmers Union (ZCFU) President, Dr Shadreck Makombe, welcomed the payments, saying they would only bring solace to those who delivered their crop and not incentivise production.
“This payment is long overdue and could have helped farmers to retool and buy inputs for the 2024/25 season. This part payment will not incentivise wheat farming but bring solace to farmers paid what is due to them,” he said.
Dr Makombe said with the liberalisation of the market, most farmers would shift to private arrangements with contractors, although GMB is offering better prices and a nationwide depot distribution network.
Zimbabwe Farmers Union (ZFU) Secretary General, Mr Paul Zakariya, echoed the same sentiments, saying efforts by Treasury and GMB to pay off farmers for wheat delivered last season were commendable.
“It should, however, be pointed out that delays in farmer payments put pressure on farm cash flows. This negatively impacts farm operations,” he said.
Food Crop Contractors Association (FCCA) Chairperson, Mr Graeme Murdoch, concurred, saying delayed payments were unlikely to make much difference in production this season as some farmers are still to be paid.
“There is still about US$5 million and a substantial amount of Z$ outstanding,” he said.
An agriculture expert, Dr Reneth Mano, also commented: “Better late than never! For wheat delivered in October and November 2024, GMB was expected to pay farmers within 14 to 21 days after delivery.”
He said time was money in farming and the standard business practice is that late payment attracts penalty charges based on commercial lending rates plus the fine.
“To show that Government fully understands the time value of money and is not taking for granted all the grain farmers contracted by the Government to deliver grain to GMB for our national strategic grain reserve (SGR), it should consider compounding the outstanding balances that GMB owes to farmers using the prevailing monthly lending rate used by commercial banks,” he added.
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