DELAYED MAIZE PAYMENTS THREATEN NEXT FARMING SEASON

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Posted by admin on December 5, 2025 at 7:25 AM

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Economic expert Kelvin Chisanga has cautioned that delayed payments to smallholder farmers supplying maize to the Food Reserve Agency (FRA) pose a serious structural risk to Zambia’s agricultural economy and threaten the long-term viability of rural livelihoods.

Speaking on the current situation, Chisanga noted that smallholders operate within tight liquidity cycles, where timely cash inflows are critical for securing inputs, hiring labour, and sustaining household welfare. With payouts dragging into December, farmers face acute cash-flow constraints that disrupt production planning and undermine food security at both household and national levels.

Farmers are increasingly reluctant to participate in formal markets, opting instead for early crop sales at discounted prices through informal traders who guarantee instant cash.

Payment delays erode confidence in structured markets, discouraging future participation and weakening the integrity of the agricultural value chain.

From a macroeconomic perspective, late payouts contribute to lower production in subsequent seasons, increase reliance on costly imports, and pressure fiscal resources through emergency procurement or subsidies.

Mr Chisanga stressed that expediting the payout process is not merely administrative but a critical intervention for stabilising productivity, supporting rural economies, and maintaining national food security.

He recommended Strengthened financial mechanisms, enhanced digital verification tools and Predictable payment schedules to boost farmer confidence and ensure continuous participation in formal maize marketing.

“Ensuring timely payouts is ultimately an investment anchored in both economic resilience and social stability,” Chisanga said.