Government Earmarks RD$6 Billion Pesos for Agricultural Support

The Dominican government has earmarked 6 billion pesos for the agricultural sector to be used for short, medium and long-term projects as a way of guaranteeing national agricultural production in the face of the world food crisis affecting many nations.

“These 2.5 billion pesos will serve as start-up money for the creation of a fund, the type of new fund that we´ll identify and that will become eligible for further support from international organizations,”

In a meeting with producers at the Ambassadors Lounge of the National Palace, President Leonel Fernández explained that of these 6 billion pesos, 1.5 billion is already available through the Agricultural Bank of the Dominican Republic for short cycle production. He added that there are requirements from the bank for those seeking a similar amount and that they need to be disbursed immediately, according to the President’s Office of Information, Press and Publicity.

In addition to these funds, President Fernández added, the Reserve Bank and the National Bank for the Development of Housing and Production (BNV) is also releasing 2 billion pesos destined to finance farming production, mostly medium-term projects.

He said the BNV is designing a brochure explaining the distribution of vouchers valued at 2.5 billion pesos to finance long-term production projects.

“These 2.5 billion pesos will serve as start-up money for the creation of a fund, the type of new fund that we´ll identify and that will become eligible for further support from international organizations,” said the Dominican President.

For this reason, the President said that they are making contacts with executives from the Andean Promotion Corporation (CAF) as well as the Inter-American Development Bank with the idea of developing the special fund that will go to the country´s agricultural sector. The Dominican Republic is a member of the CAF.

The Dominican government has earmarked 1.5 billion pesos in loans to be used in short term agricultural projects.

The head of state assured producers at the meeting that these disbursements are in addition to the pledge program being undertaken by the government through the Ministry of Agriculture which supports milk producers and cattle ranchers. Also, through Petrocaribe, support and solidarity is being developed in the area of farming production with the distribution, free of charge, of agro-chemicals to the country´s growers.

“With this information we are giving you, we are beginning to move in the direction of being able to guarantee food security to the Dominican people…”

“With this information we are giving you, we are beginning to move in the direction of being able to guarantee food security to the Dominican people within the framework of the National Council on Food Security,” said President Fernández.

He added that in the near future, he will submit a law project to the National Congress that will permit it to assign great international importance to the National Council on Food Security.

The president said he hoped to address the “legitimate complaints that many of you have lodged these recent days, in terms of support you need from the public sector in order to guarantee the re-invigoration of the agricultural sector of the Dominican Republic.”

José Ramón Peralta, president of the Dominican Agro-Business Junta (JAD), demonstrated satisfaction over the disbursement of 6 billion pesos the government has consented to give to the producers.

“I think this is a good, significant and interesting injection [of cash] for the immediate future which will clearly help the farmers,” emphasized Mr. Ramón Peralta.

The JAD executive said that this is the first time any Dominican government has offered such significant support this sector.

Also present at the meeting was Agriculture Minister Salvador Jiménez, César Pina Toribio from the President´s office; Luis Manuel Bonetti, Presidential Administrative Minister; Vicente Bengoa from the Housing Ministry and Paíno Abréu, Director of the Agricultural Bank.

The agriculture and cattle farming sector was represented by Eric Rivero of the National Cattle Ranchers Collective; Carlos Magno Gónzález from Cibao Chicken; Juan Recio from the National Milk Council and Olivero Espaillat, President of the National Federation of Rice, among other producers.