Thursday, 16 February 2017

U.S. FARMERS’ 2017 PROFIT HALF OF 2013 LEVELS, REPORT SAYS

A 9% YEARLY DROP IN PROFITS SEEN


A sharp drop in crop values will send U.S. net farm income for 2017 to the lowest levels seen since 2002 and nearly half of what it reached at its 2013 peak, according to the latest forecast by the Economic Research Service.
On Tuesday, the governmental agency released its latest forecast of net farm income, a conventional measure of farm sector profitability that is used as part of the U.S. gross domestic product calculation.
The report indicates that following several years of record highs, net farm income trended downward from 2013 to 2016.
For 2017, ERS forecasts that net farm income will fall to $62.3 billion ($54.8 billion in inflation-adjusted terms).
If realized, this would be an 8.7% decline from the prior year and a decline of 49.6% from the record high in 2013, according to the ERS report.
The expected decline in 2017 net farm income is driven by a forecast reduction in the value of production.
Crop value of production is forecast down $9.2 billion (4.9%), while the value of production of animal/animal products is forecast to decline by less than $1 billion (0.5%).
Net Cash vs. Net Farm Income
ERS’s report reflects a better picture for 2017 net cash income vs. net farm income, the difference in the two being when sales are put on the books.
A narrow cash-based measure, net cash farm income, is forecast to rise by $1.6 billion to $93.5 billion from the 2016 value, an increase of 1.8%. In contrast, net farm income is forecast to decline by 8.7% to $62.3 billion, the fourth consecutive year of declines after reaching a record high in 2013.
The difference between the two profitability measures is expected to increase in 2017 largely due to an additional $8.2 billion in cash receipts from the sale of crop inventories.
The net cash farm income measure counts those sales as part of current-year income; the net farm income measure counted the value of those inventories as part of prior-year income. If realized, net farm income in 2017 will be the lowest since 2002, in inflation-adjusted terms.
Overall, cash receipts are forecast to remain largely unchanged, with large offsetting changes in dairy receipts — up by $4.7 billion, or 13.7%, based on forecast higher prices — and cattle/calf receipts, which are forecast down by $4.5 billion (6.7%) based on anticipated lower prices. The forecast for crops is mostly unchanged, with wheat receipts changing most in absolute and percentage terms, falling $1.4 billion (16.6%) relative to 2016. Direct government payments are down by $0.5 billion (4.0%) to $12.5 billion.
Find additional information and analysis in ERS’s Farm Sector Income and Finances topic page, released February 7, 2017.

3 BIG THINGS TODAY, FEBRUARY 16

SOYBEANS RISE IN OVERNIGHT TRADING; WHEAT BIGGEST WINNER ON WASDE, EXPORT SALES DAY.


1. SOYBEANS HIGHER IN OVERNIGHT TRADING AS GRAINS LITTLE CHANGED

Soybeans were higher, while grains were little changed in overnight trading.
Prices of the oilseed were supported by reports that China imported almost 8 million metric tons in January, the most since 2010, an indication that the Asian country is stockpiling inventories.
Soybeans also were higher after the Rosario Grain Exchange earlier this week cut its forecast for production in Argentina to 54.5 million metric tons and the U.S. Department of Agriculture lowered its forecast to 55.5 million tons from 57 million.
Wheat was little changed overnight after jumping double digits yesterday amid a USDA report that showed stockpiles in the marketing year ending May 31 would fall more than analysts had expected.
Soybean futures for March delivery rose 4¼¢ to $10.54¾ a bushel overnight on the Chicago Board of Trade. Soy meal added $2 to $340.40 a short ton, and soy oil declined 0.12¢ to 34.55¢ a pound.
Corn futures rose ¼¢ to $3.69¾ a bushel in Chicago.
Wheat futures for March delivery lost ½¢ to $4.43 a bushel. Kansas City futures rose a penny to $4.52¼ a bushel.
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2. BIG REPORT DAY SEES WHEAT WIN ON WASDE, EXPORT SALES

It was a big day on Thursday with the Department of Agriculture releasing its World Agricultural Supply and Demand Estimates (WASDE) Report and its Weekly Export Sales Report.
The biggest surprise, or at least the number that offered the biggest market reaction, was the wheat ending stockpiles estimate, which declined to 1.139 billion bushels from 1.186 billion the prior month and trade estimates for 1.180 billion. The forecast pushed prices up double digits on the day.
Corn inventories at the end of the marketing year on August 31 were pegged at 2.32 billion bushels, down slightly from last month’s 2.355 billion and the average estimate of 2.335 billion. Soybean carryout was estimated at 420 million bushels, unchanged from last month and higher than the trade estimate for 41 million bushels.
Wheat also was the winner in yesterday’s Export Sales Report.
Exporters sold 527,300 metric tons of the grain to overseas buyers in the week that ended on February 2, up 17% from the prior week and 9% from the previous four-week average, according to the USDA. The biggest buyer was Japan, which bought 90,600 tons. Mexico took 67,300 tons, the Philippines bought 64,600 tons, and Chile purchased 60,000 tons.
Corn sales fell 15% week over week to 971,700 tons, which is down 13% from the prior four-week average, the government said. The biggest buyers were Japan, which was in for 401,700 tons, unknown buyers, who bought 183,600 tons, and Mexico, which bought 149,500 tons, according to the USDA.
Soybean sales totaled 536,300 tons, down 14% from both the previous week and the average, according to the USDA. China, as usual, was the biggest buyer at 259,900 tons. Mexico was next on the list at 105,600 tons, the Netherlands followed at 75,700 tons, and Bangladesh bought 57,900 tons.   
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3. RED-FLAG WARNINGS IN MUCH OF SOUTHERN PLAINS, MIDWEST

A red-flag warning is in effect for much of eastern Colorado, extreme northeastern New Mexico, and the Texas Panhandle, according to the National Weather Service.
Extremely low humidity and warm temperatures and strong winds are making for tinderbox conditions in the region, the NWS said in a report early Friday morning. Winds are expected to be sustained at 15 mph, with gusts up to 30 mph, and relative humidity is forecast to be as low as 11% today.
A red-flag warning also has been issued for most of central and eastern Oklahoma, southwestern Missouri, and parts of extreme northwestern Arkansas, according to the NWS.
Winds in Fayetteville, Arkansas, are forecast at 35 mph. The agency said the potential is high that fire could spread as fast as 229 feet per second if started, so no activities involving fire are advised for today.

CEO Ojoro Kitchen - ‘As an Entrepreneur in Nigeria you can’t depend on the Government’


Victor Komolafe, is a chartered accountant and CEO/ founder of Ojoro Kitchen Limited. He finished with a degree in Accounting and Finance about four years ago, practiced accounting for a few years before deciding to focus on his business, Ojoro Kitchen full time where he meets the condiment needs of many Nigerian homes.
What is Ojoro Kitchen about?
Ojoro kitchen like you said is to cheat and what we are trying to do is to cheat time. What the company is trying to do is to make products, condiments you know things that will make cooking easier for a lot of people. we find that in Nigeria our cooking process are still long and these days people have less time to cook and to prepare meals, so it’s just about adding technologies or using new methods or processes to achieve the same results in less time..
Ojoro kitchen… we started off with condiments, we have garlic, ginger, and  atarodo…. we make it differently from what is available right now, on the market you are able to get ground ginger, ground chilli or powered things  …. we have been able to get the product fresh and real to the to the customer, which is out major different instead of getting the powder or puriee you get the raw original that stays fresh for a longer time so you get the same fresh feel to your product or to your food that you prepare every time and its 100 percent healthy and our preservatives have health benefits.
ojoro condiments
Why did you venture into the agric business?
Well, that is a very interesting question… growing up I always had a passion in agriculture, my dad used us to plant different things around the house, so it was just in my blood from an early age. But I never thought I would venture into it until I got back to Nigeria about four years ago and I saw there were so many opportunities in the agric space. I went into condiments production because I found a particular challenge that I faced and I needed to get a solution to it, that was how I ventured into the agric business and since I started with condiments there’s been so many areas that I have been able to make an impact and I can make a difference too. Because the agric space is untouched, there are so many things you can do within there.

What are the challenges in agric business?
Wow… starting up business in Nigeria are very difficult… I had an idea of the challenges I would face but nothing prepared me for it until I got there eventually. So what I would say is if you want to start a business, there is no good time for it you just have to start something if you take a lead whenever you feel like you are up for it. There are a lot of challenges  especially with regulation and regulatory bodies… for example I had to get a NAFDAC license the cost for that is quite prohibitive, and the time it take its quite  a while I had to do my job par time while funding my business.
There are problems with access to finance also, especially for young entrepreneurs mean banks will not give us the money. What kind of collateral do we have anyway … there’s a lot that has to be addressed in terms of starting business in Nigeria
How well is the government doing to encourage entrepreneurs?
I will be quite critical about it to be honest … the federal government has been in power for a while but I haven’t seen much… but I will say this they have a lot of good policies to encourage entrepreneurs.. sound ideas and a lot of thing which h they announce. But that’s all we see, its policies the implementation we don’t see.. I can give a lot of instance where I have promised things by the government, and you know, it does not come true. We don’t look upon them anymore which is quite sad… as an entrepreneur in Nigeria you can’t depend on the government you have to think of how to do what you are doing within the constituent of the society, we can’t depend on the government to do things for us, we have to do it ourselves.
How do you carry out your Corporate Social Responsibility (CSR)?
One thing we Ojoro Kitchen do is we try and reach farmers that would otherwise with their products wasted. This is a way of getting another market for them instead of them wasting those products we pay them for it. So that is our way of making social impact because if you are able to give someone money or more money than he expected then he is able to do more with his family, provide more jobs, send his school and benefit the society so what we try to do is to use our company to create a social impact especially as regards farmers and most people that it affects.
Advice to budding entrepreneurs
A few things, one it’s not easy. I think there’s trend or new thing in Nigeria where everybody is saying “agriculture, agriculture”, I don’t agree with it because its false, because it’s not developed there are more challenges that we face than the traditional sorts of business although the government has policies that is try to change things it’s not there yet.. So if you think this is an easy way to make money, you are mistaken. So I would say work hard, work harder if you are doing anything else, there’s a lot of opportunities it a brand new space, almost everything you do, you have to the potential to be the market leader, the market starter, once you put in the quality work and you work hard then sky is your limit, but if you just think that you are going to coast time, make easy money, agric product… then you have a shocker waiting for you.

Indian Government to promote Pulses farming in Nigeria


Indian government has expressed its readiness to support Nigerian farmers to plant more pulses that would be exported to India. Such pulses include dry beans, dry broad beans, dry peas, chickpeas, cow peas, pigeon peas, lentils, Bambara beans, vetches, lupines and pulses.
The Head of Chancery, High Commission of India, Jagdeep Kapoor, disclosed this in Lagos  yesterday while addressing journalists.
Kapoor informed that the scheme would create a source of income for Nigerian farmers, and also ensure steady flow of the produce to India, noting that the project would be a priority in India and Nigeria’s 2017 Civil Aviation and Agriculture Cooperation Agreements, that would soon be formalised by both governments.
“Nigeria and India’s fresh areas of cooperation in 2017 would focus mostly on the signing of the Civil Aviation and Agriculture Agreements, that would soon be formalised by our two governments.” he said.
The head of Chancery announced the  announced his government’s readiness to support Nigerian farmers to plant pulses, that would be massively exported to India for industrial and household consumption.
He noted  that the move became imperative as there was currently a growing demand for pulses in India and that Nigerian soil was rich for planting and production of the leguminous crops.
According to him, “We are going to be encouraging Nigerian farmers to plant pulses, that currently needed in the large quantities in India. And India is a ready market for these crops today”
The Indian official  promised that his government would be sending some Indian farmers to Nigeria to support Nigerian farmers in the planting of the crops, expressing confidence that the initiative would create employment for the teeming youths in Nigeria.
“We strongly believe that the planting of these crops in Nigeria would make Indians have more supply of pulses, generate income that would encourage more young Nigerians into planting these crops for export.” he expressed.

POULTRY BUSINESS IN NIGERIA AND THE THREAT OF AVIAN FLU


Avian flu is currently spreading across countries of the world, posing threat to poultry business especially in Nigeria CHIKA IZUORA writes.
Avian influenza refers to a disease caused by infection with avian (Bird) influenza (flu) Type A viruses.
These viruses occur naturally among wild aquatic birds worldwide and can infect domestic poultry and other bird and animal species.
Humans can also be infected with avian and other zoonotic influenza viruses, such as avian influenza virus subtypes, A(H5N1), and A(H7N9) and swine influenza virus subtypes A(H1N1) and (H3N2).
From current statistics, the Nigerian poultry industry is huge promising great potentials in terms of job creation and return on investment.
It is also estimated that the country’s poultry industry holds about N80 billion in investment and is comprised of approximately 165 million birds, producing 650,000 metric tonnes, MT, of eggs and 29,000MT of poultry meat.
From a market size perspective, Nigeria’s egg production is the largest in Africa followed by South Africa which produce 540,000 MT of eggs and it has the second largest chicken population after South Africa’s 200 million birds, according to Food and Agricultural Organisation, FAO of the United Nations, UN.
Nigeria’s poultry sector is extremely fragmented with most of the chicken raised in ‘backyards’ or on poultry farms with less than 1,000 birds.
But there are a large number of commercial players in the sector most of whom are located in the South- West.
Avian flu threat is not new in Nigeria, and despite the significant loss recorded during previous experience, experts are afraid that preventive measures are not adequately put in place to avert its presence.
Nigeria in 2006 recorded its first case of AI, avian influenza in a commercial farm located in Kaduna state. World Organisation for Animal Health, said the incident caused 227,514 cases and 222,780 deaths from 2006-200z.
In January, 2015 federal government also confirmed a second outbreak of the disease in Kano and Lagos states.
According to Poultry Association of Nigeria, PAN, as at June 2015, the total number of depopulated birds was 1.4 million belonging to 437 farmers across 18 states.
To curtail the resurgence of the disease the government partnered the United States Agency for International Development, USAID, to organise training sessions for poultry stakeholders and has collaborated with PAN to ensure that increased biosecurity measures are put in place at farms.
It was learnt that government has set asid N600 million, fund as compensation for affected farmers.
Beginning from 2017, a number of countries have reported cases of the disease, from Europe to Asia and indeed Africa.
The World Health Organisation, WHO, disclosed that nearly 40 countries have reported new outbreaks of highly pathogenic avian influenza in poultry or wild birds since November.
In China, H7N9 strains of bird flu have been infecting both birds and people, with the of human cases rising in recent weeks due to the peak of the flu season there.
According to the WHO, more than 900 people have been infected with H7N9 bird flu since it emerged in early 2013.
In birds, latest data from the Organization for Animal Health, OIE, should that outbreaks of highly pathogenic avian flu have been detected in Britain, Italy, Kuwait and Bangladesh in the last few days alone.
Russia’s agriculture watchdog issued a statement describing the situation as “extremely tense” as it reported H5N8 flu outbreaks in another four regions. Hungarian farmers have had to cull 3 million birds, mostly geese and ducks.
These come on top of epidemics across Europe and Asia which have been ongoing since late last year, leading to mass culling of poultry in many countries.
Strains currently documented as circulating in birds include H5N8 in many parts of Europe as well as in Kuwait, Egypt and elsewhere, and H5N1 in Bangladesh and India.
In Africa which experts say is especially vulnerable to missing flu outbreak warning signs due to limited local government capacities and weak animal and human health services H5N1 outbreaks have been reported in birds in Nigeria, Burkina Faso, Cameroon, Ghana, Niger and Togo. H5N8 has been detected in Tunisia and Egypt, and H7N1 in Algeria.
The United States has, so far this year, largely escaped bird flu, but is on high alert after outbreaks of H5N2, a highly pathogenic bird flu, hit farms in 15 states in 2015 and led to the culling of more than 43 million poultry.
Uganda, has reported a H5 type of avian influenza, according to the latest reports to the OIE.
The specific type of the virus has not yet been determined, so it is not yet known whether it is the H5N8 strain that has been causing problems all over Europe and recently spread to Nigeria.
Twenty cases in birds and seven deaths in the Masaka region of Uganda, dating from 2 January, were reported to the OIE in the past week, but 30,000 village birds were listed as susceptible. A further report described hundreds of cases in white-winged terns in Wasiko and Masaka.
However, comments from Uganda’s Ministry of Agriculture, Animal Industry and Fisheries indicate the problem may be larger: “There are still continuous deaths of wild ducks and birds along the shores and islands of Lake Victoria in Masaka and Wakiso districts,” the Ministry said.
“In Masaka alone, wild and domestic birds are dying at alarming numbers and in Lutembe wetland white-winged terns are the ones dying. This is already a big threat to over thirty million domestic poultry in Uganda which calls for an urgent response to control the spread of the disease from wild birds to domestic birds.”
Neighbouring countries Kenya and Rwanda have reportedly banned imports of poultry productions from Uganda as a result.
However, response by Nigerian government on the latest threat according to expert should be firmed up with action plant to mitigate spread.
At the moment, only one outbreak of H5N8 has been reported by Nigeria to the OIE, and that was in a small flock of 250 birds in Kano state.
The National Consultative Meeting on Avian Influenza (Bird Flu) recently took place in Abuja, with all State Commissioners of Agriculture and Directors of Veterinary Service, and was initiated by the Federal Ministry of Agriculture and Rural Development.
The officials met to review past experiences and arrive at agreeable and implementable preventive measures against bird flu, the Ministry revealed on its Twitter account.
Other issues examined included insurance for the poultry industry, sustainable and participatory cost sharing and compensation for affected farmers.
Effective regulation of the poultry industry and adherence to biosecurity and hygienic practices also formed part of the discussions.
Some challenges identified include lack of compliance with on-farm quarantine measures and movement restriction of infected poultry, violation of bio-security measures which leads to rapid spread of the disease to other areas and states, and the reluctance of some poultry farmers to register with State Veterinary services for easy monitoring and regulation, amongst others.

Wednesday, 15 February 2017

ARE AG FORECASTS GETTING LESS BLEAK?


Since the collapse of the agriculture boom in 2013, the start-of-the-year forecasts for the farm economy have been as uniformly dreary as midwinter in the Midwest: big stockpiles and the lowest season-average commodity prices in a decade. It’s hard to turn a profit, and USDA chief economist Robert Johansson says the stress is mounting for some producers.
One in 10 crop growers and an equal portion of livestock operators are highly leveraged, meaning they carry debts that exceed 40% of their assets, a rocky position. “It’s been picking up lately,” Johansson says. “It (had) been fairly flat for the last 10 years or so.” 
Highly leveraged operators tend to be growers with a high proportion of rented land and recent entrants to farming, who have limited reserves. Only 6.5% of crop farms and 6% of livestock operations were highly leveraged four years ago.
In a Successful Farming magazine interview, Johansson says delinquencies on farm loans are rising but bankruptcies remain low. The debt-to-asset ratio, a commonly used gauge of financial stress, was 13.2% in 2016 and “will tick up this year as land values fall,” perhaps as high as 14%. That would be the highest since 15% in 2002 but far below 22.2% in 1985 (at the worst of the agricultural recession). “The situation is much different than it was then,” notes Johansson.
The sector is also adjusting to expectations that commodity prices are not likely to improve much for years to come. Farmers are tightening the screws on production expenses and idling less productive land. Grain, soybean, and cotton plantings are expected to decline by more than 6 million acres from 2016.
Cash rental rates for farmland are likely to fall by 5% this year, says Johansson. “I don’t see land values coming down as quickly on a percentage basis.” Low interest rates support land values by making it easier for farmers to afford to buy land when it comes on the market.
It’s a common theme among agricultural economists that the farm economy this year will look a lot like last year. 
A University of Missouri think tank says farm income will be up by $1 billion, a marginal improvement. Crop prices may be slightly higher this year, but production will be smaller than last year’s record-setting corn and soybean crops, so revenue should be roughly similar. 
On the broader front, U.S. and world economic growth are forecast higher, pointing to higher demand for farm goods. The impact could be offset by rising inflation and interest rates as well as petroleum prices.
“There are a lot of things out there that could change” the economic picture, says Johansson. Exports account for 20% of U.S. farm income, so large-scale change in trade agreements could influence foreign sales, for better or worse. Since China is the number one market for U.S. exports, its decisions, such as opening the door to U.S. beef or throttling back on pork, could have an especial impact. Similarly, if economic growth overseas accelerates above the 2.7% assumed by USDA, U.S. farm exports could benefit.
There is the perennial question of how weather or disease will affect production. Brazil, the top U.S. competitor in soybeans, is on track for a record crop, due to large plantings and good conditions early in the growing season. The crop has a ways to go. February is the main pod-filling month with harvest mainly in March. If Europe, and particularly France, rebounds from the poor wheat crop of 2016, it could add to record-large world wheat stocks. South Korea culled its flocks of domestic fowl, cutting egg production by 30% because of an outbreak of avian influenza. As a result, it began importing U.S. eggs in January, a welcome outlet for U.S. egg farmers, who have rebuilt flocks from losses in the worst-ever U.S. bird flu epidemic in 2014-2015.
Around the world, there are key countries and markets where U.S. exports and, indirectly, farm income ride on local events. “In any given region, you could pick one,” says Johansson.
This article was produced in collaboration with the Food & Environment Reporting Network, an independent, nonprofit news organization producing investigative reporting on food, agriculture, and environmental health.
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PEANUT contains mono-unsaturated fatty acids especially oleic acid that prevents coronary artery diseases.

High Food Prices: Federal Govt to open Nation’s Food Reserve


As part of efforts geared towards reducing food prices in the country, the Federal Government has revealed plans to open the nation’s food reserve .
The Minister of Agriculture and Natural Resources, Audu Ogbeh, stated this while addressing journalists at the end of a meeting of the Federal Executive Council this week.
Ogbeh informed that the council had received the interim report of the task force committee set up last week to look at the issue of hike in food prices.
“One of the things we found out is that the cost of transportation is becoming extremely high especially because most of our transportation is by road and diesel prices have gone up while trucks are finding it difficult to move from place to place at the old prices” he said.
To tackle the challenges, Ogbeh explained that while the federal government has considered the railway wagons as a viable alternative for transportation.
“So, we considered the following alternatives: using railway wagons along the current railway network. As we did before when we moved cattle from the North-West to Lagos, we brought down the cost and avoided the multiple taxation on transporters by local governments which delayed movement.” he added.
Speaking further on measures to address challenges of transportation, Ogbeh said the federal government would also ensure that trucks carrying food items would be labeled to enable them move smoothly on the highways without delays by the security agents.
“We are going to adopt what they have in Cote d’Ivoire. Trucks carrying foods are given labels. In fact, in Cote d’Ivoire, they cannot be stopped for more than 10 minutes anywhere. Even if something serious happens, the security agencies will follow them to their destinations and come back to investigate whatever has happened”, he assured.
The minister however expressed that the federal government will be looking into the food reserves if the current high food prices continues.
“Finally, we shall be looking into our reserves if in the next few days the situation persists, to see what we can bring out to lower the prices because another bumper harvest will be coming up again at the end of March” he noted.

EU may lift ban on Nigerian agricultural produce


There are indications that the European Union is considering reversing its ban on the nation’s agricultural produce. The Nigerian Agricultural Quarantine Service reveals.
The Coordinating Director of the agency, Dr. Vincent Isegbe, gave the hint in Lagos at the opening of a two-day training workshop on plant health inspection and certification of vegetables for exporters and farmers.
Isegbe informed that the EU had promised to reverse the ban if necessary measures were put in place before 2019.
He lamented that the European Union ban on Nigeria’s beans had a crippling  effect on the economy, emphasizing the need for Nigeria to avoid such rejection of the Nation’s agricultural commodities in the future.
According to him “We have had issues in the past concerning beans where the European Union suspended Nigeria for three years for beans export. That is not good for us because it means that all the farmers who are producing beans can no more export the quantity that they used to export”.
“The good news is that the EU said if we could put the process in place earlier than 2019, it will reverse its decision. So, that is where we are” he said.
The coordinating director informed that the two-day training was centered on vegetables because it was one of Nigeria’s major export commodities.
He noted that the training became imperative because of the sensitive processes involved in the handling of vegetables, as well as the  need to for strict monitoring and certification procedures that would sustain its export, especially at a time the government was stressing the need for diversification of the economy.
“Vegetable is a delicate product and because it is almost ready to eat, it needs more stringent inspection and certification procedures since most times, we eat it fresh” he stated.

36 JIGAWA COMMUNITIES LOSE FARMS TO CHINESE PLANTATION


Thirty six communities in Jigawa state have lost their farmlands covering 12,000 hectares to a Chinese company for sugarcane plantation.
The state government gave the farmlands to Messrs Lee Group- based in Kano for N2.1 billion.
The state government has confirmed most of the issues at stake to Daily Trust. However it failed to address some of the critical aspects raised, such as the project’s specific details, and whether it will include a processing plant and other value chain component or the sugar cane will be shipped to China to be processed into sugar and then sent back to Nigeria.
The Chinese firm has also declined comment more than four weeks after taking down questions from our reporter. Its spokesman, Dr. Umar Majia, who requested for the questions was not forthcoming since then.
The firm has already secured a ‘Letter of Grants’ from the government for the project billed to commence in 2022.
The communities are spread across three adjoining local government areas but majority of them are in Gagarawa axis.
The affected communities include fairly big settlements like Medu, Kanyu, Zaro, Danmadi, Kore Balatu, Garin Chiroma, garin Goto, Gagarawa Gari, Kagadama, Wadi Fulani, Garin Giwa Fulani, Saunawa Fulani and Goda. Others include Gayawar Malam, Mutumbi, Mejiwarwa, Furya and Malkaderi.
The communities have mounted strident opposition to the project which they argue will inevitably displace them from their ancestral home for good.
They also accused the government of betrayal of a pre-election promise made by present Governor Muhammadu Badaru Abubakar, when he was running for office not to go ahead with the project initiated by his predecessor, Sule Lamido.
The project started in 2014, when the Chinese company, Messrs Lee group, on the invitation of Lamindo’s administration, surveyed and sought the farmlands in the affected communities for sugar cane plantation.
Concerned residents were at first surprised that the firm settled for the land even though it is not swampy nor is there a river or dam, a common feature of sugar
cane farms.
But they later found out that the seismic survey the company conducted shows the farmlands have enough underground water to serve their purpose for a long period.
At the height of the campaigns for 2015 general elections, then candidate Muhammadu Badaru Abubakar along with others political office seekers visited the communities and were told they could only get the communities’ votes if they would halt the project, a pledge they all agreed to, residents say.
After the election and the subsequent triumph of the APC, the governor reviewed his position on the matter and issued the Chinese company a ‘Letter of Grants.’
The issue generated heated debate and escalation of tensions leading to the suspension of several local chiefs (Known as dakatai) in the affected communities.
They were later reinstated on the condition that they should drop their hostilities and support the project, some farmers said, preferring not to be named.
To reduce tension, the state government through Ministry of Land & Survey also offered to pay what the farmers called ‘insignificant compensation.’
In addition, the communities said the state government’s plan to resettle them in areas already designated as forest and grazing reserves is potentially explosive at a time of recurring deadly farmers and herders clash.
They argued that the government should instead give the Chinese the reserve areas.
Initially the communities under the aegis of Sugarcane Farmers Cooperative Society made effort to negotiate with both the company and the state government, but it did not work out as some of their demands were not met.
In a letter dated 24 October 2016 to the Secretary to the State Government signed by its chairman, Bulama Sunusi Abubakar and the secretary, Muntari Adamu, they appealed to the state government to reconsider the size of the land (12,000 hectares) grabbed for the project stressing that it is too large and not proper to displace all the villages.
Secondly, they considered the compensations (N18, 000 to N60, 000) by the Chinese Company through the Jigawa State Ministry of Land &Survey offered to some farmers as too small. They lamented that the government they elected is promoting the interest of the Chinese over the citizens who own the land.
Last month, hundreds of farmers gathered at Sani Zorro Square in one of the affected communities to express their anger and reaffirm their opposition to the project.
Aminu Mohammed Danmatsayi, one of the communities’ leader told Daily Trust that the opinion of the farmers was that the project has no direct bearing on their lives because no staple food will be cultivated.
He stressed that displacing thousands of farmers and their families from their ancestral land across these communities for one Chinese investor would be a colossal mistake.
They cultivate food crops like millet, sorghum and commercial plants such as sesame and hibiscus which fetch them better money than the sugarcane the company wants the land for.
“We have inherited the farmlands from our forefathers and would like to bequeath it to our children as the custom demands, which Islam also recognises,” he stated.
In the same vein, Ibrahim Aminu from Gagarawa said all the communities do not want the project because it would amount to complete displacement from their homes to unknown lands and throw them in an uncertain future and would distort their lives forever.
He accused their representatives at the state house of assembly for abandoning them despite election promises to halt the project.
Mallam Wada Bello a Fulani man told Daily Trust that he has never seen where government would walk into a land (12,000 hectares) belonging to its people and grab it, not for government development purposes, but for just one private foreign investor.
Mallam Bello said government did not make any effort on resettlement only to recently ask them to relocate to grazing and forest reserves over 20 kilometres away which were designed to solve the farmers-herders conflict.
“We have buried our fathers and our children on these lands which we inherited. I swear we will not watch anybody come with bulldozer to destroy those graves. We are ready to protect and die on our land even now,” he swore.
On his part, Alhassan Gawa lamented that government wants to force them to migrate to the neighbouring state of Bauchi, or even across the border into Niger Republic to live as refugees.
“We have seen how displaced persons are suffering in this country and they want to throw us in that condition, we will not accept it,” Mallam Gawa said.
He pointed out that every effort to get the relevant stakeholders to help them did not yield any result