Farmers seeking to expand into medium- and large-scale production are expected to soon have access to agricultural loans at preferential interest rates, as the government works with commercial banks to improve financing for the sector.
President Dr Mohamed Irfaan Ali announced on Monday that Republic Bank has already committed to making financing available under the initiative, while negotiations continue on the interest rate.
“Already, we have the commitment from Republic Bank that they are going to set aside resources for agricultural loans at a preferential rate, and we are negotiating that rate, which I hope can be announced even before the end of the conference, at the end of this week,” Ali said.
The President made the disclosure at the inaugural Farmers’ Conference at the Arthur Chung Conference Centre (ACCC), which forms part of Agriculture Month activities.
According to Ali, the government is seeking to have agricultural financing benefit from incentives similar to those available for low-income housing loans.
Demerara Bank currently offers loans to poultry farmers at a five per cent interest rate, and the government is also seeking to have those loans incorporated into the new incentive arrangement.
The move comes amid growing demand for financing in the agriculture sector. Ali disclosed that almost 30 per cent of applications received by the recently launched Guyana Development Bank (GDB) are agriculture-related.
“If there is one indication as to how the policy direction is leading to a new wave of excitement, a new wave in agriculture, it is this fact, that almost 30 per cent of all the applications so far in the development bank is in the agricultural sector,” the President said.
Ali said the situation represents a shift from 2020, when some large producers were scaling back investments and medium-sized operators, particularly in rice and poultry, were leaving the sector. He noted that production has since rebounded, with young people also forming groups to invest in poultry and other agricultural ventures.
The President also pointed to the International Monetary Fund’s latest report on Guyana, which found that agriculture has grown by an average of 10 per cent annually since 2022. The sector now accounts for six per cent of Guyana’s overall GDP and about one-fifth of non-oil GDP.
Ali attributed the expansion to investments, subsidies and other measures aimed at supporting farmers and increasing production.
This year’s Agriculture Month is being observed under the theme, “Innovate, Nourish, Grow: Building a Strong and Sustainable Guyana.”
