XN000022-1978-01-07 — Page 2

SATURDAY, JANUARY 7, 1978

FARMERS BENEFIT FROM TRUST FUNDS

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THOUSANDS OF LOCAL FARMERS HAVE BENEFITED FROM LOW-INTEREST LOANS FROM TWO TRUST FUNDS ADMINISTERED BY THE AGRICULTURE AND FISHERIES DEPARTMENT UNDER ITS 22-YEAR-OLD AGRICULTURAL CREDIT SCHEME.

THE TWO TRUST FUNDS IN THE SCHEME - THE KADOOR IE AGRICULTURAL AID LOAN FUND AND THE J.E. JOSEPH TRUST FUND - ARE DESIGNED TO HELP FARMERS TO INCREASE THEIR OUTPUT BY LOAN GRANTS SO AS TO ENABLE THEM TO BUY FARMING EQUIPMENT, LIVESTOCK FEEDS, FERTILISERS, INSECTICIDES, SEEDS, AND OTHER FARMING MATERIAL, AS WELL AS TO FINANCE THE CONSTRUCTION OF FARM STRUCTURES AND FISH PONDS, AND DEVELOP NEW AGRICULTURAL LAND.

AN AVERAGE OF 2,200 APPLICATIONS FOR LOANS FROM BOTH FUNDS ARE RECEIVED ANNUALLY,

TODAY, THE TWO TRUST FUNDS HAVE A COMBINED CAPITAL OF MORE THAN $7 MILLION AND HAVE SO FAR GRANTED LOANS WORTH MORE THAN $98 MILLION TO FARMERS.

A SPOKESMAN FOR THE AGRICULTURE AND FISHERIES DEPARTMENT EXPECTS THE TOTAL AMOUNT OF LOANS GRANTED TO REACH $100 MILLION NEXT MONTH AS MORE AND MORE FARMERS MAKE USE OF THIS FACILITY TO IMPROVE AND INCREASE THE IR PRODUCTION.

HE POINTED OUT THAT APART FROM LOANS, THE DEPARTMENT ALSO PROVIDES FARMERS WITH TECHNICAL ADVICE ON HOW TO OPERATE NEW EQUIPMENT, SIMPLE CONSTRUCTION WORK, THE INSTALLATION OF MACHINERY, FARM MANAGEMENT AND MODERN FARMING TECHNIQUE,

HE SAID: THROUGH THESE VARIOUS FORMS OF ASSISTANCE, FARMING INDUSTRY IN HONG KONG HAS ENTERED A MECHANISATION ERA.+

THE SPOKESMAN ADDED A TOTAL OF 2,400 SMALL MECHANISED CULTIVATORS AND ABOUT 1,500 UNITS OF SPRINKLERS ARE NOW IN USE IN THE FARMING INDUSTRY.

APPLICATIONS FOR LOANS FROM THE TWO TRUST FUNDS ARE MADE THROUGH THE EIGHT AGRICULTURAL LIAISON OFFICES OF THE DEPARTMENT IN THE NEW TERRITORIES.

ON RECEIVING A LOAN APPLICATION, AN OFFICER OF THE DEPARTMENT WOULD VISIT THE APPLICANT TO ASSESS HIS NEED, REPAYMENT ABILITY AND THE PRACTICABILITY OF THE PROPOSED PLAN TO BE FINANCED BY THE LOAN. SUCH PROCESS NORMALLY TAKES TWO WEEKS.

HE POINTED OUT THAT THERE IS NO CEILING FOR THE MAXIMUM AMOUNT OF AN INDIVIDUAL LOAN AS EACH APPLICATION IS CONSIDERED ON ITS OWN MERITS. +HOWEVER, THE AVERAGE SINGLE LOAN GRANTED IN 1977 WAS ABOUT $3,500, WITH MOST OF THEM USED IN BUYING FEEDS, ESPECIALLY FOR PIGS AND CHICKEN, FERTILISERS, FARMING MACHINERY AND LAND, HE SAID.

THE PERIOD OF REPAYMENT NORMALLY BY INSTALMENTS VARIES, DEPENDING ON THE SIZE OF THE LOAN. THE INTEREST RATES ARE VERY LOW RANGING FROM 3 PER CENT TO NEARLY 5 PER CENT A YEAR AND THE INITIAL LOAN OF UNDER $1,000 IS GENERALLY INTEREST-FREE,

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