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{
    "id": 774378,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/774378/?format=api",
    "text_counter": 225,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Mr. Deputy Speaker, Sir, for us to achieve that noble objective of price discovery and price setting for our farmers, we need to have a warehouse receipting system in place. My understanding of warehouse receipting system is that it takes care of the interest of farmers. We have seen in the past that when farmers make a bumper harvest – and I will give the example of maize farmers in places like Narok or Homa Bay counties – the prices of maize and other agricultural products go down. Farmers are then forced to sell off their produce at very poor prices so that they can meet some very immediate needs. If we had a very well established warehouse receipting system, things would change for farmers with access to that ecosystem. This is because once the farmer gets his bumper harvest, he will take his time to dry, sort, process, cure and add value to that agricultural commodity. He will then take that commodity to a licensed warehouse; and we are not talking of National Cereals and Produce Board (NCPB). We have seen farmers queue at the gate of NCPB looking very desperate. We will have more players licensed to establish warehouses and so, a farmer will take his maize to a licensed warehouse. When the maize is received, the farmer will be issued with a warehouse receipt. That warehouse receipt is as good as cash if we have the relevant legislation established. In fact, what we are doing is collateralisation of agricultural produce. So, the farmer moves from thinking that he is a pauper or a peasant. Mr. Deputy Speaker, Sir, we will need to look at the definition of ‘agricultural commodity.’ I do not think this definition has been expanded to include things like cattle. However, you will agree with me that some of the richest persons in this country are pastoralists, particularly the nomadic ones. You will see them walking after hundreds of cattle; and when you look at that person, you will still think that he is a poor person. However, when you do quick calculations, if someone has 100 heads of cattle and sold one cow at Nyamakima for Kshs20,000 per head, he is a millionaire. Our farmers have got the pauper mentality because they think that you are only rich when you have cash. A warehouse receipting system will help our farmers to convert the agricultural commodities and holdings into the equivalent of cash. When the farmer goes to the registered warehouse, he gets a warehouse receipt and now has collateral. He can go to a bank and borrow. The farmer can borrow and buy a tractor that will ensure that he gets a better yield in the coming season. He can borrow to buy land, so that he can increase his productivity. He can borrow to take his children to school. The farmer is being given the power of choice. If Parliament passes this legislation, it will be good news to our farmers. Once we pass this legislation, we need to go back and explain to our farmers and constituents some of the good things that the Senate is doing. Mr. Deputy Speaker, Sir, we have had conversations in the past where people ask what is it that we do in the Senate. They say that it is a House of old men; it is a House that does not have quorum and business. What we are discussing today is the real business that the Senate should be talking about because it directly benefits our people. We will make our farmers to start thinking that they are rich and start seeing themselves in a different way. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}