Food Reserve Agency (FRA) Adopts Cash Payments to Support Farmers During Crop Marketing Season

September 2, 2023

By Gideon Lumbani

In response to the ongoing crop marketing season and concerns regarding farmers receiving lower prices for their maize due to immediate cash payments, the Food Reserve Agency (FRA) has taken a proactive step to address this issue. With immediate effect, the FRA has initiated a policy to pay farmers in cash upon the delivery of their maize. This move is aimed at safeguarding farmers from incurring losses while selling their crops, ensuring they receive fair compensation, and replenishing the National Strategic Food Reserves.

The decision to pay farmers in cash upon delivery is a significant shift in FRA's approach to support the agricultural sector. This policy adjustment is not only expected to benefit farmers but also strengthen the country's food security and boost agricultural productivity.

One of the primary reasons behind this strategic intervention is to counteract the prevailing market dynamics. In some regions, farmers have been compelled to sell their maize at lower prices due to immediate cash offers. This practice has often left farmers at a disadvantage, as they may not receive the fair market value for their crops.

By implementing this new payment approach, the FRA aims to create a fairer and more favorable environment for farmers during the marketing season. This not only ensures that farmers receive a fair price for their maize but also provides them with the financial resources necessary to prepare for the upcoming farming season.

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Additionally, this initiative aligns with the ongoing Farmer Input Support Programme (FISP) countrywide. Farmers will now have the means to participate in the FISP Programme, which is crucial for the success of the agricultural sector. The FRA's swift action in adopting cash payments reflects its commitment to supporting farmers and promoting agricultural development in Zambia.

The FRA is confident that this innovative approach will have a positive impact on this year's farming season, ultimately contributing to sustained national food security. Farmers can now make informed decisions about when and at what price they sell their maize, ensuring that their interests are protected.

In line with this transition, the FRA has also undertaken to provide essential marketing prerequisites such as empty grain bags. This proactive measure is aimed at ensuring that the cash payment system operates smoothly and does not cause any inconvenience to farmers.

The Food Reserve Agency's decision to pay farmers in cash upon maize delivery is a testament to its dedication to the welfare of farmers and the broader agricultural community. By making this change, the FRA not only addresses immediate market challenges but also lays the groundwork for a more resilient and prosperous agricultural sector in Zambia.

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