Colombian Govt Begins Disbursing Funds To Renovate Coffee Plantations, Marks Beginning Of Dialogue Between Govt and FNC
Colombian Govt Begins Disbursing Funds To Renovate Coffee Plantations, Marks Beginning Of Dialogue Between Govt and FNC
Bogotá (Coffee Network)- The Colombian government has begun disbursing funds for the renovation of coffee plantations, which marks the beginning of dialogue between the coffee growers federation and the administration of president Gustavo Petro, but most importantly ensures money to renovate plantations.
The Minister of Agriculture, Jhenifer Mojica and the General Manager of the FNC, Germán Bahamón, launched yesterday the national coffee plantation renewal program that will have a Rural Capitalization Incentive –ICR– to strengthen national production of the grain.
The Ministry of Agriculture allocated COP35 billion Colombian pesos ($8.79 million) in funds for coffee growers to develop production processes, transformation, marketing and support services such as irrigation and drainage, soil improvement, infrastructure, machinery and equipment, and planting of perennial crops, including crown transplantation.
The investment will benefit nearly 17,500 small coffee growers througouth the country for the renewal of 7,800 hectares of crops. Under this scenario, it is expected that in the next three years the production will go from five to twelve loads per hectare.
This economic benefit was designed so that small producers have the necessary inputs and are more competitive in the market.
The announcement is an important news to coffee growers, who have failed to renovate plantations since the beginning of the administration of Gustavo Petro in August 2022 amid broken relations between FNC and the Petro’s administration.
Many coffee growers throughout Colombia have told Coffee Network that they have not renovated their plantations on the lack of government funds amid depressed coffee prices.
The reference price for two bags of 125kg of parchment coffee is being paid at COP1.275 million pesos ($320), but coffee growers claim that production costs are ranging from COP1.450 million and COP1.55 million, resulting in losses to growers
Large coffee grower Pedro Echavarria said coffee growers have failed to renovate plantations in the past four years.
“There are people who bet that we are not going to spend the more than 35 billion pesos and I am sure that yes, that you are going to spend that money and that next year we are going to give you more. Count on this Government because, in addition to the ICR, we have special lines of credit for you. We are going to make agriculture grow,” said Jhenifer Mojica.
German Bahamon, FNC general manager, said this government aims to provide funds to renovate 20% of coffee plantations.
“This announcement is very important for our coffee to maintain a young, vigorous, and productive coffee for the benefit of growers. We were waiting for that harmonious work and article with the government,” Bahamon said yesterday from the Cauca province.
“This is great news for Colombian coffee growing…. In this sense, and as approved by the National Committee of Coffee Growers, with the technical team of the Ministry and the Federation of Coffee Growers, this program was designed to bring very important relief to coffee growers so that they can continue renewing their coffee plantations."
But funds are low compared with the COP200 billion Colombian pesos that were allocated by the former government of President Juan Manuel Santos in 2010 when 100,000 hectares were renovated.
With this economic benefit, small low-income producers will receive an incentive of up to 40% of the value of their investment, and small producers, 30%.
The Manager encouraged all coffee growers to use this tool through the Extension Service, which in Cauca is present in 33 municipalities. “We are going to accompany all coffee growers to process the resources that the National Government today irrigates coffee farming to benefit productivity and profitability, so we hope to work hand in hand with Banco Agrario and Finagro, to continue contributing to regional well-being."
The announcement was made by the minister before about 500 coffee growers who met at the headquarters of the Cauca Coffee Growers Committee, where union representatives from Cauca, Nariño, Huila and Valle were also present, as well as representatives of associations and organizations from the region.
The Rural Capitalization Incentive can be requested by any natural or legal person who develops investment projects in the agricultural sector. For more information you can go to the Banco Agrario or consult with the FNC Extension Agent.
OTHER PROGRAMS
FNC has also set up a negotiating table with the government to ensure fertilization funds. FNC also wants to speed up housing title process to make coffee growers owners of their farms and allow them to be subjected to credit. FNC is also working with the housing ministry to improve the homes of the coffee growers, Bahamon said.
By Diana Delgado
