MMA/ADA likely to increase land rental fees…Fees are outdated and should be adjusted –Minister Holder

Aug 07, 2016 News

With an aim to recover millions of dollars owed to the Mahaica-Mahaicony-Abary Agriculture

Minister of Agriculture, Noel Holder

Development Authority (MMA/ADA), the Ministry of Agriculture is likely to increase land rental rates within the Region Five (Mahaica/Berbice) area.
According to reports, the Minister of Agriculture, Noel Holder, had submitted a paper/proposal seeking Cabinet’s approval for the increase.
General Manager of the MMA/ADA, Aubrey Charles, had told another section of the media that currently, fees range between $400 per acre and $2500 per acre – per year, depending on the level of service provided.
Charles also added that in some areas, the agency only provides drainage which attracts a lower charge.
For drainage and irrigation, farmers are required to pay approximately $600.
“Then you have drainage and irrigation, primary with secondary irrigation.
Once you are getting all of those things you pay at the max, $2500 per acre per year,” Charles said.
Previously, Minister Holder had stated that the rates being paid by rice farmers for the services provided by the agricultural scheme are outdated and should be adjusted to real terms if the scheme is to be expanded.“There has been no attempt to keep the rates of land rent and the cost of drainage and irrigation or the pay for the cost of drainage and irrigation in line with inflation. The result of that is where MMA used to be a source of income to the government, it’s now taking money out of the government to survive; $ 237M out of the budget for this year.
We have to look at raising rates to the proper levels,” the Minister told the Government Information Agency (GINA).
Meanwhile, there continues to be reports of lessees sub-letting lands at a rate that is more than 16 times what is being charged by the MMA. Minister Holder said this is a breach of their agreement.
“Some of these people are also renting that land for $40,000 a year, $20,000 per crop and that money is going not into the kitty.
That is ridiculous and also illegal by the way.
The Act doesn’t allow that, and the leases they have don’t allow sub-letting,” Holder explained.
Recently, Charles said plans are in train to ensure farmers in the Mahaica Mahaicony area pay for the use of MMA lands and drainage and irrigation fees as required by law since much work has been done in those areas by the agricultural authority.
It was also revealed earlier last month that more than 40 percent of farmers are delinquent in rates.

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