600% land rent increases not exorbitant – Govt

… claims previous fees too meager

In light of protests by Region Five (Mahaica-Berbice) farmers over the Mahaica/Mahaicony/Abary-Agricultural Development Authority’s (MMA-ADA’s) approved increases, Government has recently claimed that 600 per cent increase for land rental and drainage and irrigation services, is not exorbitant. Speaking at the post-Cabinet press briefing late last week, Natural Resources Minister Raphael Trotman reiterated Agriculture Minister Noel Holder’s long held view that the current fees cannot facilitate the financial operations at the Ministry’s sub-agency.

Farmers protesting the 600 per cent increase for land rental and drainage and irrigation services
Farmers protesting the 600 per cent increase for land rental and drainage and irrigation services

“The Minister of Agriculture has been repeatedly saying to Cabinet that the fees currently charged cannot sustain the operations at MMA,” Trotman noted.

Trotman further claimed that the increases were necessary to fix broken and missing equipment in areas under MMA’s preview.

“We need to be clearing sluices. There are repeated complaints at Trafalgar and elsewhere of flooding – pumps are being vandalised, parts missing [and] have to be replaced and it was felt that there had to be some adjustment,” the Minister told media operatives.

Minister Trotman justified the cumulative increases based on the monthly price per acre. Among the changes include new drainage and irrigation charges for profit to Rosignol village moving from $2500 per year to $8000 per year, representing a $5500 increase. Additionally, farms lands that fall in the Mahaicony/Abary Rice Development category will see farmers now paying $7000 over $1241 from last year’s fees. The cost per month of former amounts to $666 per month while the latter accrues $583.

“By no stretch of the imagination can we call these exorbitant and I believe everyone in the industry knew that prices were unrealistic and could not be sustained and whilst they had to be raised, we don’t consider $416 for an acre of land to be unreasonable,” the Minister further explained.

MMA General Manager Aubrey Charles told Guyana Times late last week that the cumulative fee of increases, which amount to $15,000, will only be paid by farmers who benefit from all of the services offered by MMA.

Protest

However, a group of irate Region Five rice farmers on Tuesday protested the move on the basis that they cannot afford to pay $15,000 per acre of rice land, noting that they were previously paying $3500 per acre.

Meanwhile, the Rice Producers Association (RPA) had vented its vexation over the MMA-ADA’s reported refusal to meet with RPA’s representatives to discuss Government’s decision to increase rates for land users. RPA’s General Secretary, Dharamkumar Seeraj, who is also an Opposition Member of Parliament (MP) had told the media these increases, if allowed to be implemented, would bring a great burden to the farmers in the rice industry, noting that they will not be able to cope. He added that “no one” in the agricultural sector supports the proposal.

However, the Agriculture Ministry last week described the protest actions as ‘unfortunate’.

The Opposition has since confirmed that it will be moving to lay a motion in Parliament to review these increases.

These latest increases come against the backdrop of farmers receiving reduced earnings for their paddy following the end of the lucrative PetroCaribe (rice-for-oil) deal with Guyana and Venezuela. The deal, which saw rice farmers receiving premium prices for their produce, was cancelled by the Bolivarian Republic in 2015 amid increasing tensions between the two countries. Since then, many rice farmers, especially those in Region Five have reiterated calls for Government to implement various subsidies, including fuel and heavy-duty equipment, to assist them in remaining in the field to maintain their livelihood.