Delayed rebate leaves dairy farmers struggling

Several dairy farmers said Friday they are being pushed into financial difficulty with the government’s promised 80 per cent rebate on imported pregnant heifers yet to materialise. But Agriculture Minister Indar Weir is assuring the government will honour its commitment.

The farmers told Barbados TODAY that the rebate was intended as a lifeline for dairy producers who urgently needed to replenish their herds following last year’s crippling shortage in the national milk supply.

“Based on the loan, we only had to pay interest. The installments would kick in about six months after, because we had a six-month grace period,” one farmer explained. “So with the government paying that portion — 80 per cent — then our repayment would be smaller. But now we didn’t get any government portion, so we had to pay the full amount.”

The $2.6 million 2024 heifer importation programme was launched to ease the strain on the island’s dairy output, which had fallen by up to 40 per cent on some farms. It promised farmers an 80 per cent rebate, slashing costs by about $1.7 million, as well as a young heifer stock replenishment scheme, a 45 per cent rebate on hay purchases for three years, increased rebates for pasture establishment, discounts on farming equipment and supplies, and support for digital and innovative technologies.

The cattle were eventually sourced from Canada after plans to import from the United States were scrapped when Chief Veterinary Officer Dr Mark Trotman banned US imports due to a severe outbreak of bird flu in cattle.

With pregnant heifers costing around $7 500 each, the rebate would have significantly reduced farmers’ loan repayments. Many are still servicing debt from the previous two importations in 2016 and 2020.

Instead, farmers said they have been forced to start paying approximately $6 000 a month — around $4 500 more than they would have if the rebate had been in place. They warned the unexpected cost was crippling cash flow and placing an additional burden on already stretched operations.

Chief Executive Officer of the Barbados Agricultural Society (BAS) James Paul confirmed the rebate funds had not yet been disbursed.

“I can only wait on the ministry. We haven’t received it yet. All I can tell you is that it is a fact — we have not received the rebate as yet. We are waiting on the payment of the rebate from the ministry. Until we get the rebate the farmers are being forced to pay the full amount.”

President of the Barbados Dairy and Beef Association Patrick Butcher insisted the money would come: “We were promised an 80 per cent rebate. The government does not make empty promises, so to speak. This is something that is written into law. But it’s a process that has to go through… sometimes we think that these processes don’t work fast enough, but it requires a little patience… it is something that is being actively worked on… nobody has forgotten about it.”

In a statement to Barbados TODAY, Minister Weir said the rebate system was being pursued and the government was honouring its commitment to the dairy farmers.

“The disbursement of rebate payments is presently being pursued. These funds are allocated under the Incentives and Rebates Programme and include a portion of the claims submitted by the BAS,” he said. “The entire rebates and incentives mechanism was amended, not only to account for the inclusion of locally procured animals within the dairy industry and the imported heifers, but also to incorporate all new incentives announced during the recent Budget Debate.”

The agriculture minister added that “these revisions are intended to ensure a more comprehensive, equitable, and forward-looking framework for supporting the agricultural sector”.

“The BAS has been fully apprised of these changes, and government remains committed to ensuring that all eligible stakeholders benefit from these enhanced provisions in a timely and transparent manner.”

sheriabrathwaite@barbadostoday.bb