SUPPORT PROJECT PROPOSAL. for the ST HELENA FARMERS ASSOCIATION. August 2013

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1 Paper 06/08 Annexure SUPPORT PROJECT PROPOSAL for the ST HELENA FARMERS ASSOCIATION August 203 Project Summary

2 In an effort to encourage farming, and with a view to increasing local production, the Farmers Association has identified areas that will improve the establishment. Improved cultivation of arable land Reduce manual digging of potatoes thereby increasing production without additional labour Increase and improve fenced areas for livestock and arable lands To achieve these objectives the Association is looking to purchase, the following equipment. Rotavator suitable for use with cultivating attachments Potato lifter Reversible plough 5 tine cultivator Ridger Heavy duty rotor blades Earth auger Auger bits (90mm + 20mm) BACKGROUND The St Helena Farmers Association was formed in the 990 s as a NGO Group with recommendation of the ANRD Officer in charge at that time. The Association operates accordingly and as far as possible within its constitution. This requires the Association committee to liaise with the local farmers with a view to recording problems encountered in the course of livestock and arable production, and to present these findings to the ANRD Department, which would be discussed at committee level, with a way forward to eliminating these problems, secure appropriate funding etc, and report back to the Association Committee. The Farmers Association has been instrumental in discussions with agricultural strategies, policies, invasive weed and pest management, and all other aspects of farming within the community. It was on the recommendation of the committee to the ANRD Department that a permanent VET was employed. PROJECT PROPOSAL The St. Helena Farmers Association is looking for financial support from Enterprise St Helena to buy much needed equipment, which would be used to hire out to its members. It is hoped that the Association will grow in strength by other farmers joining to gain access to this equipment. This will also encourage farmers working together to increase local production on St Helena. The following equipment has been identified for purchase:- F720 Rotavator suitable for use with cultivating attachments ABF Reversible plough (will plough to a depth of approx 8 inches) ABF2 Potato ridger (Used to make potato rows & celery ridges) ABF3 Five tine cultivator (fully adjustable for inter row cultivation) ABF4 Potato lifter (fish tail plough for harvesting potatoes) ACM54 Front tiller slasher rotors (for breaking down very heavy soil.) 2

3 Earth auger and Drill bit Auger bits (90mm + 20mm) EQUIPMENT MANAGEMENT Before the machinery is loaned to farmers, the association will put in place the following, taking into account the life expectancy of the equipment on an individual basis. Inventory list of all equipment for lending. Terms and conditions for the lender In addition the financial return from hiring the equipment will be put in an asset replace fund for future replacements. The Association s aim is to see growth within the local farming sector, and where possible avoid importation of the various produce e.g. potatoes, onion, pumpkin, meat etc which is being imported into St Helena in large quantities. In line with the islands strategic objective and the former SHDA Buy Local Program, it is the Association's aim where possible to reduce imports which could threaten the local industry. BREAKDOWN OF EQUIPMENT & COST Item Price No of items Honda F720 Tiller Honda Potato Lifter Total Cost Honda Five Tine Cultivator Honda Heavy Duty Slasher Rotors Honda Reversible Plough Honda Ridger Stihl BT2 Earth Auger Stihl 90mm Auger Bit Stihl 20mm Auger Bit Duty payable at St 20% 97.3 Financial support required

4 PRICING STRATEGY The pricing structure for the hiring out of the equipment will be based on the life expectancy of the assets, and the daily usage of the assets. Normally assets would be written down over a 5 year period as required by law for any business, but taking into account the anticipated heavy usage of the equipment, a three year life expectancy would be adequate. Hiring costs are listed below for each of the items also showing the financial return on each for replacements. Item Cost Life Expectancy 3 years Tiller and attachments Earth Auger and bits Proposed Hiring Charge 3, day based on assumption of a usage rate of 50 days in each year day based on assumption of a usage rate of 50 days in each year Financial return 4,500,500 CONSIDERATION The Farmers Association is seeking Enterprise St Helena s consideration to support and approve their proposal to take the islands farming sector forward by buying much needed equipment for hire to farmers on the basis that they will become members. The Association hope to implement this proposal as a tool to help with the Agricultural crisis that is looming for St Helena. The Farmers Association is seeking Enterprise St Helena s consideration to support and approve their proposal to take the islands farming sector forward by buying much needed equipment for hire to its members and potential new members. The Association hope to implement this proposal as a tool to help with the Agricultural crisis that is looming for St Helena 4

5 Stihl Earth Auger Part number Comfortable one-man earth auger with vibration-reducing handles. Includes innovative QuickStop drill brake, which brings to a halt as soon as the drill jams in the ground. Particularly suitable for a large variety of purposes, from drilling simple holes in the ground to taking soil samples. Extensive choice in drilling tools for holes up to 200 mm in diameter.; Stihl Auger bits - Part numbers and Honda F720 Tiller with potato lifter and five tine cultivator Heavy duty slasher rotors, reversible plough and ridger. 5