Kampala — Farmers registered with the National Agricultural Advisory Services (NAADS) programme and entrepreneurs investing in the tractor service businesses will be facilitated to purchase tractors.

Under the new tractor lease scheme, beneficiaries will be required to make a 10% down payment of the value of the tractor, machinery and equipment to the importer.

The NAADS secretariat, which is the guarantor, will contribute 10% and banks with national coverage will pay 80% of the cost of the equipment.

"We are negotiating with banks which have a national coverage to implement the scheme. Farmers will then be sensitised about the scheme," said Dan Kilimani, the NAADS engineering support assistant.

He said the programme had so far had negotiations with Centenary Bank, dfcu and Stanbic Bank.

Kilimani said NAADS wants the scheme to be interest free.

"Farmers have been failing to access loans because of the high interest rates. We are still negotiating with the banks to make sure that there are no interests charged under this scheme"

Kilimani said farmers will be required to apply for the lease scheme through the NAADS secretariat with recommendations from the districts or farmer leaders.

"We want farmers to acquire tractors to increase on agriculture production. Uganda is capable of producing its own food and for export."

Kilimani was addressing NAADS officers from the districts of Jinja, Mayuge, Kapchorwa, Bukwo, Gulu, Amuru, Kitgum, Arua, Koboko and Nebbi about the scheme.

He said the farmers will have to pay for the tractors in three to seven years.

Kilimani said the NAADS secretariat will also train the tractor technicians and operators.

"It is envisaged that in the first year, up to 1,000 tractors will be imported."

Kilimani said the youth had run away from farming, adding that the sector had to be made attractive and rewarding.

He also said the NAADS secretariat was in the final stages of procuring 500 walking tractors, which will be distributed in various parishes.

Last year, President Yoweri Museveni distributed 50 walking tractors, which the agriculture ministry acquired from the Siam Kubota Industry Company of Thailand.

NAADS also distributed 20 tractors to farmers.

The tractors, estimated at sh3.5m each, could also be used as a source of power for farm operations like water pumping, shelling maize, sawing mills, grinding mills and propelling boats.

The tractors were equipped with 12hp diesel engines.