A Deputy Minister of Food and Agriculture, Mr. Clement Eledi has said that the poor repayment record of most farmers was stalling initiatives to extend credit facilities to them. Speaking at the Annual General Meeting of the Peasant Farmers Association of Ghana (PFAG), an advocacy group on Trade and Agriculture, in Accra, Mr Eledi said the inability of most farmers to pay back loans granted them had led to the collapse of various credit schemes initiated by government with funding from the African Development Bank. He said, while government understood that access to credit by farmers was essential to increasing production, the bad credit record was enough to prevent the institution of any similar schemes. Mr Eledi said such schemes become sustainable only when beneficiaries meet their side of the bargain by paying on time to enable other farmers to access the facility. However, he said, government had recognized the problem and was poised to find a lasting solution to it as well as address the problem of access to credit by small-scale farmers through the proposed establishment of agriculture development fund announced in the 2008 budget. Mr Eledi asked the farmers to bring their ideas to bear on the modalities for establishment of the fund. He said government policy focus would be on the small scale farmers since success in the sector depended on them. However, there is the need for the farmers to improve on their production and marketing methods to be able to stay above competition. PFAG had already welcomed the establishment of an Agriculture Credit Fund to provide financial resources to farmers but said it must be backed by a legislative instrument to meet the needs of peasant farmers, who are in the majority to have access to agriculture financing. Mr. Mohammed Adam Nashiru, President of PFAG said farmers had long suffered from undue policies that affected production, marketing and livelihoods. He appealed to government and Ghanaians to patronize locally produced food to help keep farmers in business for accelerated development. Mr. Edward Karewe, who spoke on the importance of establishing an agricultural credit fund, said it was necessary that any fund established should meet the needs of peasant farmers, who are the majority. PFAG was formed with the aim to mobilize the over seven million farmers to lobby for changes in policies that were inimical to agricultural development. The two-day AGM on the theme: “Ghana @ 50 Our Quest for Food Security,” was to deliberate on issues affecting farmers, examine the performance for last year and draw up strategies for the future.Source: GNA