Minister says charges neither exorbitant nor burdensome

MMA/ADA rent increase

…Govt urged to remove rent, other charges applicable to rice farmers

Purportedly in the best interest of the nation, the parliamentary Opposition has moved a motion in the National Assembly calling on Government to reverse the new increased fees for land, drainage and other services imposed on rice farmers in the Mahaica/Mahaicony/Abary Agricultural Development Authority (MMA/ADA) Scheme.

In moving the motion, Peoples Progressive Party (PPP) Member of Parliament (MP) Dharamkumar Seeraj said the rice industry has been under severe pressure over the past year, and the imposition of these new fees would only add to the hardships already being experienced by farmers.

Incidentally head of the Guyana Rice Producers’ Association (GRPA), Seeraj revealed that rice farmers in the MMA/ADA Scheme will now have to pay $15,000 per acre of land, whereas in 2016 they paid $3,500 for land rental and drainage and irrigation charges.

He argued that the decision taken by Government is unconscionable and not meant to assist farmers to extricate themselves from the plight they currently face. Instead, he believes, the new charges would place greater burdens on many rice farmers.

“We brought this motion, sir, so all of us in this National Assembly and outside could debate on this matter and reverse the increase imposed by the Minister of Agriculture. It is very unpopular among the farming community across the divide. It does not make economic sense to increase taxation on a sector that is going through a hard time,” Seeraj lamented.

The GRPA head also criticized Government for the position it has taken. He explained that when the rice sector began experiencing difficulty in 2015 and witnessed a decline in prices, the Opposition had recommended that payments of land leases and drainage and irrigation charges be suspended.

Shortly after the motion was moved, Agriculture Minister Noel Holder made his contribution to the debate; and in addressing the issue of land rental charges, said that under no circumstance could the new charges be considered “exorbitant” or presenting “a burden on stakeholders.”

“The total of drainage and irrigation (D&I) and land rental charges per acre in the MMA area range from $15,000 per annum ($1,250 per month) to $12,000 per annum ($1,000 per month) for rice lands; and between $9,400 per annum ($783 per month) and $6,400 per annum ($583 per month) for pasturage,” he explained.

With the cost of land rental and D&I charges being less than 10 percent of average income per acre per annum, he explained, the fees could not possibly be burdensome on any farmer.

“But perhaps, Mr. Speaker, the main concern regarding the increase in D&I and land rental charges might be due to the lobbying of those who are involved in the illegal practice of sub-letting of leased lands in the MMA area,” he told the National Assembly.

Citing the State Lands Act Chapter 62:01 in accordance with the MMA/ADA Act No 27 of 1977, Holder reminded: “The lessee shall not sub-let, assign, or give possession of the land hereby leased, or any other part thereof, without the previous written consent of the lessor.”

He said the situation on the ground is different, because while the authority has on record only one instance of authorized sub-letting, the incidence of this practice might be quite common in the area, at a rental of $8,000 per acre per crop, or $16,000 per annum.

The increase in the fees to $15,000 per annum will severely compromise the illegal returns from this practice, according to the Agriculture Minister. “It does, however, indicate that bona fide farmers are quite content in paying D&I rates and land rental in excess of those instituted,” he emphasised.

In providing a breakdown of the new drainage and irrigation charges, Holder said those could not be considered onerous. “Some people might consider such monthly charges for one acre of land – the equivalent of 8 full house lots or 16 half-lots, as obtains in our capital city of Georgetown — as ridiculously low.” The new D&I charges for land in the Abary/Berbice area – which receives flood control, primary drainage and irrigation; secondary drainage and irrigation; and primary and secondary access services — range from $8,000 per annum ($666 per month) to $1,000 per annum ($83 per month) based on the location, Holder explained. Land in the Mahaicony/Abary Block – which receives flood control, dual purpose D&I services and primary and secondary access services — range between $7,000 annually ($583 per month) and $2,500 per annum ($208 per month) based on location.

Land in the Mahaica/Mahaicony area – which receive from the Authority flood control, dual purpose D&I, and primary and secondary access services — attract D&I charges of $5,000 per annum ($416 per month), he detailed.

Following a lengthy heated debate inthe National Assembly Government used its one seat majority to defete the PPP/C’s motion.