Govt to review MMA land leases as Agri Minister raises alarm over widespread subletting

…says nearly 60% of landholders sublet agricultural lands, driving up production costs

The Government is moving to review agricultural land leases issued under the Mahaica-Mahaicony-Abary Agricultural Development Authority (MMA/ADA), after Agriculture Minister Zulfikar Mustapha revealed that nearly 60 per cent of landholders are subletting their land, despite lease conditions prohibiting the practice.

According to Mustapha, the widespread subletting is contributing significantly to the cost of rice production, with farmers paying between $20,000 and $30,000 to rent agricultural lands from leaseholders, even though the Government has reduced official land rental and drainage and irrigation charges.
The Minister made the disclosure Saturday during a meeting with farmers at Big Biaboo, Mahaica, Region Five (Mahaica-Berbice), where he announced that existing land rental arrangements would be reviewed to address the financial burden on farmers.
Mustapha said the MMA/ADA, which is responsible for administering and distributing agricultural lands within the scheme, had included provisions in its lease agreements prohibiting subletting. However, he expressed concern that many persons allocated agricultural lands were earning an income by renting them to other farmers.
“In the MMA scheme, remember the MMA is responsible for the distribution of land and the administration of land. I will ensure that those persons who get the land and the rent in it, we will review those decisions. There is a clause in the lease that says you must not sublet your land. And there are lots of people; almost 60% of the persons who have land are now subletting the land and making a living out of the sublet,” Mustapha told the gathering.
The agriculture minister warned that the practice was undermining efforts to make agricultural production more affordable, particularly for rice farmers who must meet several expenses before harvesting their crops.
He explained that land rental had become one of the largest expenses associated with rice cultivation, adding to the financial pressure created by the purchase of seed paddy, fertiliser, land preparation and other agricultural inputs.
“And that is, you know what that is causing us? That is causing the cost of production to go up. When you look at the various components, right? Seed paddy, fertiliser, ploughing… you name it. All the aspects that contribute to the cost of producing an acre of rice or cultivating an acre of rice. The highest cost is land rental,” he explained.
Mustapha recalled that the Government had previously intervened to reduce land rental and drainage and irrigation charges within the MMA scheme to ease the financial burden on farmers.
He said that under the former A Partnership for National Unity/Alliance for Change (APNU/AFC) Administration, the charges were increased from $3,500 to $15,000, prompting objections from the then Opposition People’s Progressive Party/Civic (PPP/C).
According to Mustapha, the PPP/C had committed to reversing those increases upon returning to office and fulfilled that commitment in October 2020, two months after assuming Government.
However, he expressed frustration that the benefits of those reductions were not reaching many of the farmers actually cultivating the lands.
He explained that although official charges had been reduced, farmers renting agricultural lands from leaseholders continued to pay substantially higher amounts.
The Minister disclosed that President Dr Irfaan Ali had raised the matter with him and that a committee involving himself, Attorney General Anil Nandlall and other officials was examining land rental arrangements.
“And the people who got to benefit from it, you, the farmers, are not getting the benefits. You’re still paying $20,000 and $30,000 for the land. So, I am reviewing it. The President told me about it. The Attorney General and I, and we have some other people in the committee forum, and we are looking now, and we’ll review land rental in these areas,” Mustapha stated.
While the Minister did not announce specific penalties or indicate whether leases would be cancelled, he made it clear that the Government intended to examine arrangements under which persons were profiting from lands allocated for agricultural production.

Expanding availability of agriculture lands, reducing production costs
The proposed intervention comes as the Government is also seeking to expand the availability of agricultural lands, potentially creating opportunities for farmers who currently depend on renting from existing leaseholders.
Mustapha disclosed that approximately 55,000 acres of additional land are expected to become available for cultivation following the completion of the high-level drainage canal project in Region Five. He encouraged farmers to express interest in accessing the additional lands, noting that the expansion could reduce their dependence on rental arrangements.
“When we complete the Hope Lake Canal, you all start looking at it. You all start indicating your interest. You have new land that will be coming under cultivation. You all take advantage. That is the kind of opportunities I want to give you all so that we will not have people continually renting land,” he urged.
The Minister also disclosed that the seed facility within the MMA scheme was being expanded to accommodate increased cultivation as additional lands become available.
Meanwhile, Mustapha said the Government was pursuing other measures aimed at reducing the cost of agricultural production, particularly in the rice industry.
Among these is the proposed establishment of a fertiliser plant in Guyana, which he expressed hope could become operational sometime in 2027.
He said local fertiliser production could help lower prices, while the Government was also examining ways to reduce the costs of seed paddy and agrochemicals.
According to the Minister, addressing these expenses, together with high land rental costs, would improve the profitability of farming and allow farmers to retain a greater portion of their earnings.
“If we can get these costs to come down, then we will reduce the cost of production. When the cost of production reduces … you will have more disposable income in your pocket,” Mustapha told the farmers.