Financing Operations for Sugarcane Farmers  

We’ve been covering the tough road infrastructure challenges sugarcane farmers in the north are dealing with, but that’s not their only struggle. Prime Minister John Briceño pointed out that securing financing is a major hurdle for these farmers. He explained that they often must take out loans with interest rates as high as fourteen percent because it’s their only option. P.M. Briceño shared his plans to change this situation with reporters.

 

Prime Minister John Briceño

“One idea we have been playing with, and we have not fully worked it out, but there is a lot of liquidity in the system. One of the challenges our farmers have is the issue of financing. They get these one year financing loans from the bank and the interest rates are as much as fourteen percent. They are gouging them. So, every year they have to renew. When you run on the same spot or just going backwards, one idea we are looking at is providing the financing. The idea is to use this excess liquidity, pass it on to DFC, DFC could go to the farmer, I could go to DFC and say ok, I owe ten thousand dollars. We will pay of your ten thousand and another five thousand to rebuild, but then give you three, four years. At a lower interest rate, it gives them breathing space to rebuild their fields.”