Integrated Support Programme for Arable Agriculture Development (ISPAAD)
Over the past three decades substantial amount of capital was used to fund the Accelerated Rain fed Arable Programme (ARAP), Arable Land Development Programme (ALDEP) and other agricultural support programs. Despite all these interventions these programs have not significantly improved the food security situation in the country. On the 30th June 2008, ALDEP III was terminated and replaced with Integrated Support Programme for Arable Agriculture Development (ISPAAD) to address challenges facing arable farmers and the inherent low productivity of the arable sub sector. It was envisaged that the performance of the arable sub-sector would be greatly improved by establishing Agricultural Service Centres and assisting arable farmers to acquire requisite inputs and draught power to undertake field operations.
The components of the Integrated Support Programme for Arable Agriculture Development include, Cluster Fencing, Provision of Potable Water, Seeds and Fertilizers, Facilitation of access to Credit and Establishment of Agricultural Service Centres.
Arable farming is a costly venture, especially where most agricultural inputs are imported. It is imperative that arable farmers be assisted to improve their competitiveness. Government will, therefore, facilitate access to seasonal loans for farmers by injecting funds into the National Development Bank (NDB) to enable it to finance arable farming and reduce interest on loans. NDB will provide seasonal loans at prime rate to farmers and beneficiaries of the facility will be required to take up the Agricultural Credit Guarantee Scheme (ACGS).
ISPAAD Facility Parameters
The Facility will work as follows:
- Applicants must be 18 years and above with Omang or residence and work permits.
- Applicants must produce proof of land accessibility (dully allocated or leased).
- Applicants must own or have unlimited access to farm implements and machinery (tractor, planter, cultivator, etc.) in good working condition.
- Applicants will be required to keep farming records accessible to both Agricultural Extension Staff and NDB.
- Applicants must agree to take the Agricultural Credit Guarantee Scheme (ACGS).
- The repayment period is 12 months and the farmer has the option to repay using other sources of income. However, farmers are allowed to make repayments as and when they have money.
- There is an option to apply for another loan once the other has been settled.
- There is no upfront contribution from the farmers.
- Security will vary from one farmer to the next depending on the credit worthiness of the farmer.
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