The SIA Replanting
Programme
A Managed Approach to
Crop Lien Credit
by
C. F. Woolery
Sugar Industry Research Institute /
Sugar Industry Authority
Percent hectares replanted by farmers
2000-2003
Year
Target
%
Replanted
%
2000
16
6.24
2001
16
4.80
2002
16
3.80
2003
16
4.16
Approved Financial Institutions
(AFI’S)

Collateral Requirements

Poor Repayment
Sugar Industry Authority
SIA’s Intervention
Objectives

Reverse trend of low replanting

Improve Farmers’ Productivity &
Cane Production

Improve Farmers’ Earnings

Loan Recovery
Safeguard Mechanisms
Managed Approach
Safeguard Mechanisms
Establish Lending Limit
- Loan 80%
- Farmer 20%
- Small Farmers (Sweat Equity)
Credit Worthiness
Land Tenure
Grower’s Commitment
No Advance Payment
Safeguard Mechanisms (contd.)
Target Costing
- Guide development of
Farm Plans
Managed Approach
Management & Technical Skills of
Major Stakeholders
All Estates
Alcane
SIA / SIRI
A Series of Committees
1.
2.
3.
4.
Loan Application Review Committee
Factory Credit Committee
SIA Loans Approval Committee
Monitoring Committee
Eligibility of Applicants
Viability
Management & Technical Support up to Field
Establishment
Application Review Process
Farm Plan
Application
Application
Review
Committee
Monitoring
Farmers’
Broker
On Lending
Agreement
Farmer
Factory Credit
Committee
SIA Approval
Committee
Approvals & Disbursements,
SIA Farmers Replanting Loan
Approved
Active
Applications
657
407
Value ($M)
121.96 M
69.2 M
1 987
1 374
Hectares
Challenges Faced

Extremes in Weather Conditions

Tillage Machinery

Late Crop Start

Uncertainty
Table 7.5 Loan Recovery/Repayment
%
Recovered
2007
%
Recovered
2006
%
Recovered
2005
Worthy Park
100
100
100
Appleton
100
100
98.03
Frome
86.11
81.18
88.46
Bernard Lodge
83.22
80.95
78.86
Trelawny
91.92
82.74
60.49
St. Thomas
45.86
54.40
36.57
Monymusk
40.41
53.26
37.59
Factory Area
Relative Success of Programme did
not go unrecognized
Government Funded Programme
(2007)
Replanting
Ratoon Maintenance
- Moulding
- Weed Control
- Irrigation
- Drainage
 5 % Interest
Approvals & Disbursements
Government Funded Loan
No. of
Farms
Total
$M
% Hectares
Completed
Ratoon Maintenance
295
56.716
9 082.21
Replanting 2007
60
17.048
1 136.79
Replanting 2008
182
83.749
1 624.93
537
Equipment Loan
Total
2
2.792
539
160.305
11 843.93
Challenges Similar to those of
Previous Programme
- Tillage Equipment
- Seed cane availability
- Weather conditions
Govt. Funded Programme
closes 2008

Increased Cane Planting Among Farmers

Satisfactory Loan Repayment

Without this type of funding farmer will
probably fail to replant at the required rate
Fig. 1: Percent ha replanted by farmers, 2000-2008
Replanting Target 16%
16
14
% ha replanted
12
10
8
7.08
6.24
4.80
6
3.84
5.04
4.16
4.64
4.32
3.51
4
2
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
Continued need for this type of
funding
has been recognized
Attention presently being given
C A N E EX PA N SIO N PR O JEC T
Sugar Transform ation U nit
-
Replanting
-
Drip Irrigation
-
Other
Guidelines Developed
SIA Administered with the same
Management Approach
On behalf of the SIA, the author wishes to
acknowledge the invaluable contribution of
the Management and Technical Personnel
from Alcane, SIRI and the Estates in
particular, who have incorporated the
programme into their management portfolio.
A well Managed Crop Lien Credit
Programme provides the best alternative
for growers at this time.
With the continued commitment from all
teams at the factory level, farmers can be
assisted to realize:
•
•
•
Higher farm productivity
Improved farm income
Successfully meet Repayment obligations
THANK
YOU