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Government to reduce duty on agricultural products

Government is set to slash duty on agricultural products and could give subsidies to farmers hit by Hurricane Fabian, Environment Minister Neletha Butterfield said yesterday.

And Government is also hoping to boost home gardening after pledging to preserve agriculture.

Ms Butterfield said: ?The Bermuda Government recognises it is unwise to become fully dependent upon imports to satisfy the food needs of the Island.?

She said farming preserved quality of life and maintained the rural character of the islands.

Asked about future legislation Ms Butterfield said Government might be looking at reducing customs duty on special agricultural items.

?We are looking at 2004,? she said.

The Minister was speaking after the unveiling of the 2002 review of the agriculture which noted that lack of tariff exemptions on spare parts for agricultural machinery added to costs.

It is proposed all items used on farms be duty free but farmers will have to keep records to show such goods are actually used on the farm to prevent abuse.

Farmers suffered badly in the recent hurricane with one saying last week it is the worst financial crisis he has ever faced.

Asked about possible subsidies for Fabian-hit farms Ms Butterfield said: ?We haven?t looked into that but we are sympathetic to them.?

The agricultural report, compiled by three experts from the University of Florida, found a significant proportion of Bermuda?s farmers were disaffected with their role in society and indicated they are considering abandoning vegetable production.

Government said it was committed to preserving agriculture by protecting arable land, encouraging advancement of agricultural techniques, providing incentives and continuing the embargo system to promote price stability for local fresh produce.

However the report suggested the embargo system ? which blocks certain imports either permanently or while local produces is in season ? could be modified.

It suggests produce imports, which are already subject to five to ten percent price tariffs, could be hiked up to 50 percent when local produce is in season, thereby allowing imports and boosting choice but establishing a price wedge between local and foreign produce.

Thus restaurants wanting a special variety of product could still import it when local alternatives are available while Government coffers would also swell.

Backyard and organic gardening is to be encouraged with a possible widening of the community garden programme through buying or leasing land. One site suggested lies next to the Government Marketing Centre in Prospect, Devonshire.

Currently 140 acres are devoted to home-grown produce which has been boosted by the Farmers? Market in Hamilton which allows it to be sold.

But the report noted a lack of technical advice and support and suggested hiring a full-time horticulturist to advise gardeners and part-time time farmers on pests, disease and soil fertility.

The post could be combined with advising on organic farming for which which the report noted there was a substantial demand.

One suggestion is to initiate a Government certification programme for Bermuda-grown organic produce.

A part-time or full-time employee might also be taken on to advise on new production practices suggested the report.

However it noted yields were comparable to those found in the United States while use of pesticides was lower than in other developed countries.

The Government Marketing Centre, which stores produce and seed, could do with renovation suggests the report because architectural constraints mean forklifts can?t be used so deliveries must be offloaded by hand.